Ethereum and its Layer 2 scaling solution, Polygon, have emerged as the top choices for new users in the first quarter of 2024. According to the latest report by Flipside, these two blockchain platforms have attracted a significant number of new users compared to other EVM chains since the beginning of the year. With Polygon boasting 12.3 million new users and Ethereum with 13.4 million, they account for roughly 70% of all new users across observed chains as of March 27. While Arbitrum comes in third with 4.7 million new users during the same period, it is clear that Ethereum and Polygon hold a dominant position in terms of user acquisition.
The Rise of DeFi in New User Expansion
DeFi has played a crucial role in driving new user expansion across various chains this year, with Ethereum leading the pack. The cumulative DeFi trade volume on Ethereum has reached $1 billion, with March being the most active trading period across all observed chains. Despite slight declines in DeFi trading activity on Optimism and Arbitrum in recent weeks, overall, DeFi activity has shown a consistent upward trajectory. This is a stark contrast to the market fluctuations experienced in 2023, indicating a growing interest in decentralized finance among users.
While DeFi has been a major driver of new user activity, NFT trading has also played a role in shaping user engagement on various chains. Ethereum and Polygon have seen the highest USD volume of NFT transactions since the beginning of the year. Ethereum’s daily NFT volume has remained above $1 million consistently, while Polygon peaked in early January at over $6 million before declining. The patterns of user engagement in NFT activity have been mixed, with different chains experiencing contrasting trends. While Ethereum and Base have seen a steady rise in NFT activity, Polygon has witnessed a decrease in NFT trading since the start of the year.
In relative terms, the growth in new user volume for Ethereum and Polygon was 298.3% and 359.7%, respectively, between January and March 2024. While these numbers place them in the middle of the pack among all observed chains, their extensive history and market presence give them a significant edge over other EVM chains. Despite Polygon’s high NFT trading volume, Arbitrum has managed to secure a strong second position in terms of new user trading volume, accumulating $9.5 billion since the beginning of the year. This difference in performance can be attributed to various factors, including NFT trading patterns and market dynamics.
Overall, Ethereum and Polygon have emerged as frontrunners in acquiring new users and driving user engagement through DeFi and NFT activities. As the blockchain ecosystem continues to evolve, it will be interesting to see how these platforms adapt to changing user preferences and market trends. With competition heating up in the crypto space, user acquisition and retention will play a crucial role in determining the success of blockchain platforms in the long run.