In the first quarter of 2024, Ethereum and its Layer 2 scaling solution, Polygon, have emerged as the top choices for new users in the blockchain space. According to a recent report by Flipside, these two platforms have seen a significant influx of users, surpassing other EVM chains in terms of cumulative new users since the beginning of the year. This article will delve deeper into the reasons behind this trend and analyze the impact of DeFi and NFT trading on these platforms.
Ethereum and Polygon have collectively attracted over 25 million new users in 2024, with Ethereum leading the way with 13.4 million new users and Polygon following closely behind with 12.3 million. This accounts for approximately 70% of all new users across observed chains as of March 27. While the growth in new user volume for both platforms was significant, with Ethereum seeing a 298.3% increase and Polygon a 359.7% increase between January and March, they are still in the middle of the pack compared to other EVM chains.
One of the driving forces behind the surge in new users on Ethereum and Polygon has been the rise of DeFi. DeFi has emerged as the primary catalyst for new user expansion across various chains in 2024. The trade volume in DeFi has seen a substantial increase since the beginning of the year, with Ethereum leading the way with a cumulative $1 billion in trade volume. March proved to be the most active trading period for DeFi across all observed chains, with Ethereum recording its busiest trading day on March 5, surpassing $428 million in trade volume.
In addition to DeFi, NFT trading has also played a significant role in attracting new users to Ethereum and Polygon. While Polygon has seen high NFT trading volume, with a daily peak of $6.3 million in early January, Ethereum has maintained a consistent daily volume of over $1 million since the beginning of the year. However, the patterns of new user engagement in NFT activity have shown mixed trends, with Polygon experiencing a decrease in NFT trading activity while Ethereum has seen a steady increase.
Ethereum and Polygon have solidified their positions as leading blockchain platforms in 2024, attracting a large number of new users through a combination of DeFi and NFT trading activities. While Ethereum maintains its dominance in the market, Polygon’s rapid growth and innovative solutions have positioned it as a formidable competitor. As the year progresses, it will be interesting to see how these platforms continue to evolve and adapt to the changing landscape of the blockchain industry.