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Polygon Challenges Ethereum's Dominance in 2023 User Acquisition

Polygon Challenges Ethereum's Dominance in 2023 User Acquisition

Key Takeaways

  • Polygon nearly equaled Ethereum in the 2023 user acquisition, signaling a significant shift in blockchain user preferences.
  • The top five networks for user acquisition were Ethereum, Polygon, Bitcoin, Solana, and Arbitrum, showcasing a varied and competitive blockchain environment.
  • External factors like the Silicon Valley Bank collapse influenced a surge in blockchain user acquisition, reflecting a trend towards decentralized financial solutions.

Polygon, a leading Layer-2 scaling solution for Ethereum, made a significant stride in 2023 by almost matching Ethereum's user acquisition numbers.

According to the report shared by blockchain analytics firm Flipside, Polygon's impressive growth trajectory saw it amass 15.24 million users, just slightly behind Ethereum's 15.4 million.

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Flipside's analysis categorizes an acquired user as someone who has conducted at least two transactions on a blockchain network, with one of these occurring in 2023.

Polygon had a strong start in the first half of 2023, leading the race, but Ethereum regained and sustained its lead in the second half.

In particular, the Flipside report stated:

Polygon's remarkable performance began with a surge in January, securing 2.8 million users, which was over 40% of its total for the year.

Despite a gradual decline in new user acquisition as the year progressed, Polygon's overall performance remained robust and competitive.

Among other notable blockchain networks, Bitcoin ranked third with 10.65 million new users, while Solana and Arbitrum completed the top five, reflecting the dynamic and diverse nature of the blockchain ecosystem.

The collective user acquisition for eight tracked blockchains, including Optimism, Avalanche, and Base, reached 62 million in 2023. This growth peaked in May, followed by a gradual decrease towards the year's end.

The report also links the increase in blockchain users to external economic factors, particularly the collapse of Silicon Valley Bank in March, which likely prompted a shift from centralized financial institutions to decentralized alternatives.

Base, which launched in August 2023, witnessed a strong initial user influx that declined in the latter part of the year. Flipside attributes this to the resurgence in popularity of more established chains, which offer a broader range of applications and ecosystems.

However, the firm remains optimistic about Base's potential for user growth, especially with Coinbase's efforts to act as a gateway for newcomers to the cryptocurrency world.

The 2023 crypto landscape saw a tight race in user acquisition, with Polygon nearly matching Ethereum, highlighting the growing competition and diversification in the blockchain sector.

Gile K., Market Sentiment Analyst
Gile is a Market Sentiment Analyst who understands what public events may form what emotions. Her experience researching Web3 news and public market messages – including cryptocurrency news reports, PRs, and social network streams – is critical to her role in helping lead the Crypto News Editorial Team.
As an intelligent professional in public relations, together with the team, she aims to determine real VS fake news patterns, and bring her findings to anyone searching for unbiased news and events happening in the FinTech markets. Her expertise is uncovering the latest trustworthy & informative Web3 announcements to the masses.
When she's not researching the trustworthiness of mainstream stories, she spends time enjoying her terrace view and taking meticulous care of her outdoor environment.

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