This Community Had as Many Customers as Ethereum in 2023: Flipside Knowledge

Polygon, a layer-2 scaling community, practically matched Ethereum’s consumer base in 2023, as reported by blockchain analytics agency Flipside.

Polygon acquired 15.24 million customers that 12 months, coming near Ethereum’s 15.4 million, with a distinction of round 160,000 wallets.

Polygon Topped Person Acquisition in First Half of 2023

Flipside defines an “acquired” consumer as somebody who engaged in no less than two transactions on a selected blockchain, with no less than one occurring in 2023. In the course of the first half of 2023, Polygon led the consumer acquisition race however was later surpassed by Ethereum, sustaining its lead all through the latter a part of the 12 months.

Is the bull is admittedly right here? How can we inform?

Knowledge.

Sentiment isn’t the one factor that’s modified currently. In keeping with the info, consumer habits is shifting — and with it, crypto markets.

We cowl all of it in The Onchain Crypto Person Report 🧵📊👇 pic.twitter.com/IsclNOZhJk

— Flipside 📊 (@flipsidecrypto) January 25, 2024

In January, Polygon achieved a outstanding milestone with 2.8 million acquired customers, constituting over 40% of the full quantity for 2023, in response to Flipside. Ethereum secured the lead for the whole 12 months, whereas Bitcoin claimed the third place with 10.65 million acquired customers. Solana and Arbitrum accomplished the highest 5 rankings.

The aggregated information from the eight tracked blockchains, together with Optimism (OP), Avalanche (AVAX), and Base (BASE), revealed a complete of 62 million acquired customers. Flipside noticed that consumer acquisition peaked in Could however steadily declined afterward.

Notably, Flipside advised a connection between the surge in acquired customers beginning in March and the collapse of Silicon Valley Financial institution. The occasion doubtlessly eroded confidence in centralized entities, prompting a shift in the direction of decentralized custody options.

Base, launched in August, additionally exhibited a powerful begin, however its consumer quantity dwindled within the remaining months of 2023. Flipside speculated that the waning consumer progress for Base could be attributed to renewed enthusiasm for extra established chains in the direction of the tip of the 12 months.

Flipside Predicts Tendencies for 2024

In its predictions for future tendencies, Flipside noticed a decline in NFT-related actions and a shift in the direction of decentralized finance (DeFi) actions throughout 2023. Anticipating the upcoming cycle, Flipside advised that DeFi actions would proceed to dominate, surpassing the prominence of NFT buying and selling.

Particularly, it highlighted decentralized trade (DEX) buying and selling and yield farming as ongoing predominant purposes whereas additionally forecasting the emergence of latest DeFi purposes just like the Ethereum restaking protocol Eigenlayer.

In keeping with Flipside, consumer habits in 2024 is predicted to contain elevated interplay with a number of blockchain networks, though most customers will possible keep on with participating with a single chain.

The prediction additional emphasised a rising development of consumer interplay with Layer 2 networks within the coming 12 months.

Regardless of being a minority in 2023, customers with a couple of blockchain predominantly interacted with Layer 2s. Flipside speculated that rising transaction charges in the course of the subsequent crypto market bull run could lead on Layer 2 networks to decrease their prices for finish customers competitively, doubtlessly driving elevated curiosity in related governance tokens.