In the initial quarter of 2024, Ethereum and its Layer 2 scaling solution, Polygon, emerged as the top choices for new user adoption.
According to the latest findings from Flipside, these two blockchain platforms attracted the highest number of new users among all observed EVM chains since the start of the year.
Polygon welcomed 12.3 million new users, while Ethereum saw 13.4 million, collectively representing approximately 70% of all new users across observed chains by March 27th. Following closely was Arbitrum, which recorded 4.7 million new users within the same timeframe.
Considering Ethereum and Polygon’s extensive track records compared to other EVM chains, their substantial dominance comes as no surprise. However, in relative terms, their growth in new user volume between January and March 2024—298.3% for Ethereum and 359.7% for Polygon—positions them within the middle range among all observed chains, as per Flipside’s report.
Decentralized Finance (DeFi) Emerges as Primary Catalyst for New User Expansion
DeFi Emerges as Key Driver of New User Expansion Across EVM Chains in 2024
This year, Decentralized Finance (DeFi) has risen as the primary force behind the expansion of new users across various chains. Among all monitored EVM chains, DeFi trade volume has seen a significant uptick since the beginning of the year.
Ethereum leads the pack with a cumulative trade volume surpassing $1 billion, reaching its peak trading day on March 5th, with figures exceeding $428 million. March emerged as the most active trading period across all observed chains.
While DeFi trading activity on Optimism and Arbitrum witnessed slight declines in the past week, overall, DeFi activity has maintained a consistent upward trajectory. This contrasts sharply with the market volatility experienced throughout much of 2023.
Despite Arbitrum trailing behind Ethereum and Polygon in new user acquisition, it secured a strong second position in terms of new user trading volume, amassing $9.5 billion since the beginning of 2024. This variance in performance was attributed to Polygon’s substantial NFT trading volume this year, which peaked at $6.3 million daily in early January, compared to Arbitrum’s lower daily high of $229,000 in mid-February.
NFT New User Growth Exhibits Varied Outcomes
New users’ involvement in NFT activities has exhibited “mixed” trends, with the two major chains showing contrasting patterns. Compared to DeFi, the growth of new users engaged in NFT activities has demonstrated greater volatility, varying depending on the network.
While Polygon has witnessed a consistent decline in new user NFT trading activity since the year’s outset, Ethereum and Base have seen steady increases. Across other chains, NFT trading has shown fluctuations from week to week without discernible patterns.
Ethereum and Polygon have maintained the highest USD volume of NFT transactions since the start of the year. Ethereum’s daily volume has consistently remained above $1 million since January 1st, whereas Polygon’s peaked in early January at over $6 million before dropping to less than $500,000.