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Polygon’s Meteoric Rise: Nearly Matches Ethereum’s User Base in 2023

In 2023, Polygon, a Layer-2 scaling network built to enhance Ethereum’s capabilities, came tantalizingly close to matching Ethereum’s user base, according to blockchain analytics firm Flipside.

Polygon proudly accumulated 15.24 million users during the year, falling short by just 160,000 users compared to Ethereum’s 15.4 million.

Flipside’s criteria for an acquired user was someone who conducted at least two transactions on a specific blockchain, with at least one transaction occurring in 2023.

Notably, Polygon led the race during the initial half of 2023 but relinquished its lead to Ethereum in the latter half.

Flipside shed light on Polygon’s remarkable start, amassing a whopping 2.8 million acquired users in January alone, accounting for more than 40% of the network’s total users in 2023.

Despite experiencing a steady decline in monthly user acquisition throughout the year, Polygon still performed favorably when compared to other networks.

Bitcoin secured the third position with 10.65 million acquired users, while Solana and Arbitrum occupied the fourth and fifth spots, respectively.

In total, the eight monitored blockchains recorded a sum of 62 million acquired users, encompassing platforms like Optimism, Avalanche, and Base.

READ MORE: Surge in Ethereum Execution Client Diversity Raises Decentralization Hopes

Flipside observed that user acquisition reached its zenith in May, after which it gradually receded.

Notably, the surge in acquired users began in March, coinciding with the collapse of Silicon Valley Bank.

This event potentially eroded confidence in centralized entities and prompted a shift towards decentralized custody alternatives, as suggested by Flipside.

The report also highlighted Base’s journey in 2023. Although it exhibited a strong start following its launch in August, its user volume tapered off in the closing months of the year.

Flipside attributed this decline to renewed enthusiasm for more established chains toward the end of the year, as these networks offered more robust and diverse app ecosystems.

Nevertheless, Flipside expressed optimism about Base’s future growth, speculating that the next bull run could be beneficial, especially given Coinbase’s efforts to act as a gateway for new crypto users.

In conclusion, Polygon’s remarkable performance in 2023, almost rivaling Ethereum in terms of user acquisition, underscores the growing interest in Layer-2 scaling solutions and the broader cryptocurrency ecosystem.

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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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