Recent research highlights that Polygon, a Layer-2 scaling solution, has nearly reached the number of crypto users on Ethereum’s ecosystem in 2023. According to blockchain data analytics firm Flipside, Polygon gained 15.24 million users, just slightly behind Ethereum’s 15.4 million users.
Flipside defines an active user as someone who has made at least two transactions on a blockchain network, with at least one in 2023. Polygon led the user acquisition race in the first half of the year but was overtaken by Ethereum as users did not find what they expected in the latter half.
Polygon started the year with an impressive 2.8 million users in January, accounting for over 40% of its total user base for 2023. However, it experienced the most consistent decline in monthly user gains throughout the year, although it still performed positively when compared to other networks.
The study also noted that Bitcoin was in third place with 10.65 million users, while Solana and Arbitrum made it to the top five. Across eight tracked blockchain networks, including Optimism, Avalanche, and Base, a total of 62 million new users were recorded. User acquisition peaked in May and gradually decreased thereafter, coinciding with the collapse of Silicon Valley Bank, which may have spurred a shift towards decentralized custody alternatives.
Flipside mentioned that Base had a strong start after its launch in August 2023 but saw a decline in user volume towards the end of the year. Established blockchain networks’ robust and diverse application ecosystems might have contributed to Base’s slowdown. However, Coinbase’s efforts to serve as a gateway for new crypto users could signal positive growth for Base in the next bull run.