In the first quarter of 2024, Ethereum and its Layer 2 scaling solution, Polygon, have emerged as the top contenders in the blockchain space, attracting a significant number of new users. According to a recent report by Flipside, these two platforms have collectively acquired the highest number of new users among observed EVM chains since the beginning of the year. Ethereum saw 13.4 million new users, while Polygon boasted 12.3 million – together, they accounted for approximately 70% of all new users across various chains by March 27th.
Despite the relatively recent emergence of other EVM chains, Ethereum and Polygon’s extensive history has given them a significant edge in terms of user adoption. Their growth in new user volume between January and March 2024 was reported to be 298.3% for Ethereum and 359.7% for Polygon, placing them in a strong position among all observed chains. This dominance can be attributed to the robust DeFi ecosystem on these platforms, which has been a key driver of new user expansion.
One of the primary catalysts for the surge in new user adoption across various chains this year has been the rise of decentralized finance (DeFi). The report highlighted that Ethereum led the pack with a cumulative trade volume of $1 billion, with a peak trading day on March 5th when trade figures exceeded $428 million. March was particularly active for DeFi trading across all observed chains, showcasing the growing popularity of these platforms among users seeking to engage in decentralized financial activities.
Diverging Trends in NFT Activity
While Ethereum and Polygon have shown strong performance in terms of trading volume and new user acquisition, their engagement in NFT activity has revealed contrasting trends. Polygon’s high NFT trading volume, reaching a daily peak of $6.3 million in early January, outshone Ethereum and other chains. However, Ethereum’s NFT trading activity has remained consistently high, with a daily volume exceeding $1 million since the beginning of the year. This highlights the nuanced nature of user behavior across different blockchain platforms.
Overall, the first quarter of 2024 has been marked by the continued rise of Ethereum and Polygon as leading blockchain platforms, attracting a large number of new users and demonstrating strong performance in DeFi and NFT activities. While Ethereum maintains its position as a dominant player in the space, Polygon’s rapid growth and innovative solutions have positioned it as a key contender in the evolving landscape of blockchain technology. The coming months are likely to bring further developments and advancements in the sector, as users and developers continue to explore the potential of these cutting-edge platforms.
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