In 2023, Polygon, a Layer 2 scaling network for Ethereum, is expected to attract nearly as many cryptocurrency users as Ethereum itself, according to insights from blockchain analytics firm Flipside. Polygon boasted 15.24 million users, trailing slightly behind Ethereum's 15.4 million during the same period. Flipside defines an acquired user as someone who has conducted at least two transactions on a specific blockchain, with at least one occurring in 2023.
The dynamics between Polygon and Ethereum shifted throughout the year. Polygon took the lead in the first half of 2023 but was eventually surpassed by Ethereum, maintaining its lead in the second half. Flipside highlighted that Polygon initiated the year with a substantial addition of 2.8 million new users in January, constituting over 40% of the network's total new users for the year. Despite a relative decline in monthly user acquisitions, Polygon remained competitive with other networks.
Bitcoin secured the third spot with 10.65 million new users, while Solana and Arbitrum completed the top five. Across eight tracked blockchains, including Optimism, Avalanche, and Base, a total of 62 million new users were recorded. Flipside observed that user acquisition reached its zenith in May, with a gradual decline thereafter. The company suggested that the surge in acquired users from March may have been influenced by the collapse of Silicon Valley Bank, potentially prompting a shift to decentralized custody alternatives.
Regarding Base, which launched in August 2023, Flipside noted its strong performance initially but mentioned a reduction in its user base in the final months of the year. The decline in user growth for Base was attributed to renewed enthusiasm from more established chains toward the end of the year, as these networks offer stronger and more diverse app ecosystems. However, Flipside suggested that with Coinbase's efforts to serve as a gateway for new users, Base could experience positive user growth during the next bull run.
