Polygon Will Almost ‘Get’ As Many Users As Ethereum By 2023: Report
Layer-2 scaling network Polygon will “get” as many crypto users as Ethereum by 2023, according to blockchain analytics firm Flipside.
Polygon, Ethereum's scaling solution, reported 15.24 million users by 2023, roughly 160,000 less than Ethereum's 15.4 million.
Flipside defines an “acquired” user as one who has completed at least two transactions on a specific blockchain, with at least one occurring in 2023.
Interestingly, Polygon led the points for the first half of 2023, but was eventually overtaken by Ethereum, which maintained its lead in the second half.
Is the bull really here? How do we say it?
Data.
It's not just the mood that has changed lately. According to the data, user behavior is changing – and with it, the crypto markets.
We cover it all in the Onchain Crypto User Report pic.twitter.com/IsclNOZhJk
— Flipside (@flipsidecrypto) January 25, 2024
“Polygon started the year with an impressive 2.8 million in January – accounting for more than 40% of all network users by 2023,” Flipside explained.
“Polygon then experienced a relatively consistent decline in monthly user acquisitions over the course of the year, but still compared favorably to other networks.”
Bitcoin came in third with 10.65 million active users, with Solana and Arbitrum rounding out the top five.
A total of 62 million users were registered from eight blockchain trackers, including Optimism (OP), Avalanche (AVAX) and Base (BASE), and Flipside reported that user acquisition peaked in May before a gradual decline in overall users.
“The surge in leverage began in March with the collapse of Silicon Valley Bank, which shook confidence in centralized entities and led to a shunt for decentralized protection options,” he wrote.
Related: Polygon AggLayer to make multiple blockchains feel ‘one chain'
Flipside said the base was off to a “strong” start after launching in August, but that user volume “strained” in the final months of 2023.
“Renewed interest in newly established networks towards the end of the year contributed to the slowdown in Base user growth, as these networks have more robust and diverse application ecosystems,” the firm said.
“However, the next bull run could bode well for Base user growth, given Coinbase's efforts to serve as a gateway to crypto for new users.”
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