Polygon equals Ethereum's user acquisition in 2023: Report

Polygon reaching masses: Polygon, a layer-2 scaling network for Ethereum, nearly matched Ethereum's user acquisition in 2023, boasting 15.24 million users compared to Ethereum's 15.4 million, according to blockchain analytics firm Flipside.

Flipside defined an ‘acquired’ user as someone who conducted at least two transactions on a specific blockchain, with at least one occurring in 2023. Notably, Polygon led the user tally for the first half of the year but was surpassed by Ethereum in the second half.

"Polygon kicked off the year with an impressive 2.8MM acquired users in January — accounting for over 40 per cent of the network’s total acquired users in 2023,’ explained Flipside. Despite a relative decline in monthly user acquisition, Polygon still compared favourably with other networks.

Bitcoin secured the third position with 10.65 million acquired users, while Solana and Arbitrum completed the top five. Flipside tracked a total of 62 million acquired users across eight blockchains, including Optimism, Avalanche, and Base. The firm noted that overall user acquisition peaked in May and gradually declined afterwards.

Flipside suggested that the increase in acquired users, starting in March, coincided with the collapse of Silicon Valley Bank, potentially shaking confidence in centralized entities and driving a shift towards decentralised custody alternatives.

Regarding Base, which launched in August, Flipside mentioned a strong start followed by a tapering off in user volume in the final months of 2023. The firm speculated that renewed enthusiasm for more established chains towards the end of the year may have contributed to the decline in Base's user growth.

Flipside concluded that the next bull run could positively impact Base's user growth, considering Coinbase's efforts to serve as a crypto gateway for new users.