Ethereum and Polygon attract the most new users: reverse report

ethereum and its Layer 2 scaling solution, Polygon, attracted by far the most new users in the first quarter of 2024.

Flipside's latest report revealed that these two blockchain platforms have gained the most new cumulative users among EVM chains observed since the beginning of the year.

Polygon had 12.3 million new users and ethereum had 13.4 million, about 70% of this year's new users across all chains observed as of March 27. Next was Arbitrum, which recorded the most new users (4.7 million) during the same period.

Considering the extensive history of ethereum and Polygon compared to most EVM chains, it is no surprise that they have significant dominance. In relative terms, the growth in new user volume for ethereum and Polygon was only 298.3% and 359.7%, respectively, between January and March 2024, putting them in the middle of the pack among all chains observed, Flipside said in its report.

DeFi: main driver of new user growth

DeFi has arose as the main catalyst for the expansion of new users in several chains this year. Among all monitored EVM chains, DeFi trading volume has increased since the beginning of the year.

ethereum leads with a cumulative trading volume of $1 billion, and its most active trading day was recorded on March 5, when figures surpassed $428 million. In fact, March turned out to be the most active trading period across all chains observed.

While DeFi trading activity on Optimism and Arbitrum saw slight declines last week, overall, DeFi activity has shown a steady upward trajectory. This is in stark contrast to the erratic market fluctuations experienced throughout much of 2023.

Although Arbitrum fell far behind ethereum and Polygon in acquiring new users, it managed to secure a strong second position in terms of new user trading volume, accumulating $9.5 billion since the beginning of 2024. This difference in performance was attributed to Polygon's high nft trading volume. this year, which hit a daily high of $6.3 million in early January, compared to Arbitrum's lowest daily high of $229,000 in mid-February.

New User Growth Shows Mixed Results on nft

New user participation in nft activity has shown “mixed” patterns, with the two largest chains experiencing contrasting trends. Compared to DeFi, new user growth based on nft activity has shown greater volatility depending on the network.

While nft trading activity from new Polygon users has been steadily declining since the beginning of the year, activity on ethereum and Base, on the other hand, has been steadily increasing. On all other chains, nft trading has fluctuated from week to week without any clear pattern.

ethereum and Polygon have maintained the highest US dollar nft transaction volume since the beginning of the year. ethereum's daily volume has remained consistently above $1 million since January 1, while Polygon's peaked in early January at over $6 million before falling to below $500,000.

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