Polygon hot on Ethereum's heels and narrowing the adoption gap

According to a recent report from blockchain analytics firm Flipside, Polygon acquired nearly as many users in 2023 as Ethereum, the number one blockchain. A promising sign for the mass adoption of crypto.

A narrowing gap between Polygon and Ethereum

The analysis reveals that Polygon, a scaling solution for Ethereum, had 15.24 million users acquired last year. That’s only 160,000 less than Ethereum’s 15.4 million over the same period. The gap is closing at high speed.

These numberspublished by Flipside Crypto, a firm specializing in blockchain analysis, define an acquired user as having carried out at least 2 transactions, including one in 2023.

Certainly, Ethereum still dominates the ranking in absolute value. But Polygon’s spectacular growth is a feat, when we know that Ethereum is the historic blockchain for decentralized finance (DeFi).

Polygon started the year with a bang, attracting 2.8 million new users in January 2023 alone. That’s 40% of all its acquisitions that year!

Ethereum regained control in the second half, thanks to the maturity of its ecosystem. But Polygon was able to take advantage of Ethereum’s limitations in terms of scalability and its high fees. Its low fees and its capacity to absorb more transactions are increasingly attractive.

Users acquired from various blockchain networks in 2023.
Users acquired from various blockchain networks in 2023. Source: Flipside

Promising prospects for the crypto ecosystem

Certainly, Bitcoin remains the most popular crypto in 2023 with its 10.65 million users acquired. Logical situation for this historic blockchain and leader of the crypto market.

Nevertheless, thestudy Flipside reveals a peak in overall user acquisition reached in May 2023, before a gradual decline the rest of the year.

Several explanatory factors are put forward by analysts. Notably, the resounding collapse in March of Silicon Valley Bank, undermining trust in traditional centralized institutions. Pushing many users towards decentralized alternatives like Polygon or Ethereum.

Furthermore, multiple ambitious projects have spread across these dynamic ecosystems during 2023, like the Vector Finance liquidity aggregator deployed on Polygon.

Thus, these figures confirm the potential of Polygon, now a credible challenger to the dominance of Ethereum. Its rapid growth addresses the scalability and transaction cost issues faced by crypto users. As this market progresses, scalability solutions like Polygon are set to play a central role.

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