HomeBlockchainPolygon is approaching Ethereum in the number of users acquired in 2023

Polygon is approaching Ethereum in the number of users acquired in 2023

During 2023, Polygon has almost reached the number of acquired users of Ethereum. 

According to the analysis of the blockchain company Flipside, both Ethereum and Polygon have over 15 million new users, ranking at the top of the list, while Bitcoin ranks third with 10.65 million new users. Let’s see all the details below. 

Ethereum and Polygon surpass 15 million acquired users

As anticipated, the layer-2 scaling network, Polygon, is on track to surpass Ethereum’s number of crypto users by 2023, according to analysis by blockchain company Flipside.

Polygon, a scaling system for Ethereum, recorded 15.24 million acquired users in 2023, slightly lower than 15.4 million of Ethereum.

In Flipside’s analysis, an acquired user is defined as someone who has made at least two transactions on a specific blockchain, with at least one in 2023.

An interesting aspect is that Polygon led the count in the first half of 2023, but was later surpassed by Ethereum, which maintained the top spot for the rest of the year, as stated:

“Polygon started the year with a remarkable total of 2.8 million users acquired in January, representing over 40% of the total users acquired by the network in 2023.”

From that point, Polygon has recorded the most significant decline in monthly user acquisition during the year, although it still showed favorable performance compared to other networks.

Details of user acquisition analysis in blockchain

According to the aforementioned analysis, Bitcoin ranked third with 10.65 million acquired users, followed by Solana and Arbitrum in the top five.

Overall, the eight tracked blockchains have recorded 62 million users acquired, including Optimism, Avalanche, and Base. Flipside noted a peak in user acquisition in May, followed by a gradual decline.

The company has emphasized that the increase in acquired users started in March, coinciding with the collapse of Silicon Valley Bank.

This could have undermined trust in centralized entities, pushing users towards decentralized custody solutions.

As for Base, the platform had a strong start after its launch in August 2023, but the user volume has been “manipulated” in the following months. 

Flipside suggests that the renewed interest in more established chains at the end of the year may have contributed to the slowdown in Base’s user growth, given the presence of more solid and diversified app ecosystems.

The company expects that an upcoming bullish phase could be favorable for the growth of Base users, especially considering the efforts of Coinbase in acting as a cryptographic gateway for new users.

SEC delays decision on BlackRock’s Ethereum ETF

In the midst of news regarding Ethereum, we see that the US SEC has announced a delay in the decision regarding the request for a Ethereum spot exchange-traded fund (ETF) submitted by BlackRock. 

The Wall Street regulator has expressed its intention to extend the evaluation period, as indicated in a document submitted on Wednesday.

BlackRock, the largest global fund manager, had submitted an application for an Ethereum (ETH) spot ETF in November. 

Larry Fink, CEO of BlackRock, expressed his support for an Ethereum ETF in an interview with CNBC last week, highlighting the value of such an investment vehicle and considering it a launching pad for tokenization.

The BlackRock iShares Bitcoin Trust is currently the most successful ETF among the 10 available, with assets under management of 1.7 billion dollars.

ETFs on cryptocurrencies offer investors a way to gain exposure to digital assets without having to directly purchase and hold cryptocurrencies.

In addition to BlackRock, other prestigious companies such as Ark Invest, Fidelity, and Grayscale are planning to introduce their own ETFs on Ethereum. 

The enthusiasm for these investment vehicles has grown after the SEC’s approval of spot Bitcoin ETFs, marking a change in attitude after a decade of denials. 

Eric Balchunas, senior analyst at Bloomberg Intelligence, has expressed a 70% expectation of approval for a spot Ethereum ETF by May.

Alessia Pannone
Alessia Pannone
Graduated in communication sciences, currently student of the master's degree course in publishing and writing. Writer of articles from an SEO perspective, with care for indexing in search engines.