In the first quarter of 2024, Ethereum and its Layer 2 scaling solution, Polygon, emerged as the top contenders in attracting new users to their blockchain platforms. According to the latest report by Flipside, Ethereum and Polygon collectively acquired a substantial number of new users, with Ethereum gaining 13.4 million and Polygon boasting 12.3 million. This represents a significant portion of the new user base across all observed chains, indicating the strong appeal and market dominance of these two platforms. It is noteworthy that despite the long-standing history of Ethereum and Polygon compared to other EVM chains, they continue to lead in new user acquisition.
The rapid growth in new users on Ethereum and Polygon can be predominantly attributed to the surge in DeFi activity across various chains. DeFi has served as the primary driver for expanding the user base, with Ethereum leading in cumulative trade volume amounting to $1 billion. Notably, March witnessed a peak in trading activity, signaling a robust increase in DeFi engagement. While Optimism and Arbitrum experienced slight declines in DeFi trading, overall activity in the decentralized finance sector has maintained an upward trajectory, reflecting the resilience and attractiveness of DeFi applications to users.
In addition to DeFi, NFT trading activity has played a significant role in shaping the user engagement landscape on Ethereum, Polygon, and other EVM chains. Ethereum and Polygon have stood out as the leaders in NFT trading volume, with Ethereum consistently maintaining a daily volume above $1 million since the beginning of the year. However, the patterns of new user engagement in NFT activity have varied, with Polygon experiencing a decline in NFT trading volume while Ethereum and Base have witnessed steady growth. The fluctuating nature of NFT trading across different chains underscores the diverse user preferences and market behaviors in the evolving blockchain ecosystem.
Comparative Performance
Despite Ethereum and Polygon’s strong position in new user acquisition and trade volume, Arbitrum has emerged as a notable player in the blockchain space. While Arbitrum lagged behind in new user growth compared to Ethereum and Polygon, it excelled in terms of new user trading volume, accumulating $9.5 billion since the beginning of 2024. The distinct performance of Arbitrum was influenced by Polygon’s high NFT trading volume, which reached a daily peak of $6.3 million in January. In contrast, Arbitrum recorded a comparatively lower daily high of $229,000 in February, indicating differing user preferences and market dynamics across blockchain platforms.
Ethereum and Polygon have demonstrated remarkable growth and market dominance in attracting new users in the first quarter of 2024. The synergy between DeFi and NFT activities has fueled user engagement and propelled the adoption of blockchain technologies. As the blockchain ecosystem continues to evolve, Ethereum, Polygon, and other EVM chains are expected to drive innovation and shape the future of decentralized finance and digital assets.
Leave a Reply