Polygon and Ethereum Leading All Cryptos in Adoption
In 2023, the blockchain industry witnessed notable growth in user acquisition, particularly within the Layer-2 scalable networks. According to data from Flipside, a blockchain analytics platform, Polygon (MATIC) nearly matched Ethereum (ETH) in the number of new users. Polygon and Ethereum led all cryptos in terms of user growth last year.
Polygon and Ethereum onboarded more than 15 million users each last year. In comparison, Bitcoin only acquired 10.6 million users, according to the report released by Flipside titled “The Onchain Crypto User Report“.
Last year, Polygon achieved a significant milestone by registering 15.24 million new accounts, closely trailing behind Ethereum, which recorded approximately 15.4 million new users. This data underscores the increasing popularity of scalable solutions and the growing interest in decentralized platforms.
Polygon started the year strongly, adding an impressive 2.8 million new users in January alone, accounting for over 40% of its total user growth in 2023. However, despite leading in user acquisition during the year’s first half, Polygon eventually fell behind Ethereum in the latter half. Ethereum’s consistent performance throughout the year highlights its enduring appeal in blockchain.
Bitcoin, Solana, and Arbitrum in the Top Five
The Bitcoin network maintained a robust presence with 10.65 million new users, taking third in user growth. Two other prominent blockchain networks, Solana (SOL) and Arbitrum (ARB), were also featured in the top five, indicating a diverse interest across different blockchain ecosystems. Solana had 5.6 million acquired users, while Arbitrum had 7.3 million users acquired in 2023.
Overall Blockchain User Growth
Across the eight networks monitored, including Optimism (OP), Avalanche (AVAX), and Base, there were 62 million new users. The peak in new user registration occurred in May, aligning with the collapse of Silicon Valley Bank.
This event played a significant role in shifting trust away from centralized financial institutions, leading people to explore decentralized alternatives for asset storage. However, blockchains’ new user acquisition rate started to decline steadily after this peak.
Base Network’s Initial Surge and Subsequent Decline
Following its launch in August 2023, the Base network experienced rapid growth. But in the later months, there was a noticeable decline in the number of new accounts. This trend was attributed to renewed enthusiasm in more established chains and their diverse and robust application ecosystems.
Polygon’s Reflection on the Year
Reflecting on the year’s developments, Polygon’s founder, Sandeep Nailwal, expressed that 2023 was challenging for the project. Despite the initial surge in user growth, Nailwal described the year as “very painful” for Polygon, highlighting the volatile and competitive nature of the blockchain industry.
About Polygon
Polygon project aims to address the prevalent scalability issues in Ethereum-based cryptocurrencies. To combat these challenges, the project proposes the use of side chains. This approach is expected to enhance scalability significantly, leading to lower transaction fees and faster payment processing.
The development team aims to establish an efficient, decentralized network capable of conducting instant and secure transactions. This network will utilize the Proof-of-Stake (PoS) mechanism for transaction validation. As decentralized applications evolve and become more complex, the existing blockchain infrastructure must match the scale needed to meet growing demands.
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