The Growth of Ethereum and Polygon in the First Quarter of 2024

The Growth of Ethereum and Polygon in the First Quarter of 2024

The latest report by Flipside revealed that Ethereum and its Layer 2 scaling solution, Polygon, have attracted the most new users in the first quarter of 2024. These two blockchain platforms have seen a significant increase in cumulative new users among observed EVM chains since the beginning of the year. Ethereum boasted 13.4 million new users, while Polygon had 12.3 million, making up roughly 70% of all new users across observed chains as of March 27. It is not surprising that Ethereum and Polygon have been able to attract a large number of new users given their extensive history compared to other EVM chains.

DeFi has emerged as the primary catalyst for new user expansion across various chains this year. Among all monitored EVM chains, DeFi trade volume has surged since the start of the year. Ethereum leads with a cumulative $1 billion in trade volume, with its busiest trading day recorded on March 5, surpassing $428 million. March has proven to be the most active trading period across all observed chains. While DeFi trading activity on Optimism and Arbitrum experienced slight declines in the past week, overall, DeFi activity has displayed a consistent upward trajectory, in contrast to the market fluctuations experienced in 2023.

Although Arbitrum lagged behind Ethereum and Polygon in acquiring new users, it secured a strong second position in terms of new user trading volume, amassing $9.5 billion since the beginning of 2024. This difference in performance can be attributed to Polygon’s high NFT trading volume, which hit a daily peak of $6.3 million in early January, compared to Arbitrum’s lower daily high of $229,000 in mid-February. The engagement of new users in NFT activity has shown mixed patterns, with Polygon’s NFT trading activity decreasing since the start of the year, while activity on Ethereum and Base has steadily risen. NFT trading on other chains has fluctuated from week to week without a clear pattern. Ethereum and Polygon have maintained the highest USD volume of NFT transactions since the beginning of the year.

Ethereum and Polygon have seen significant growth in new user adoption and trading volume in the first quarter of 2024. DeFi has played a crucial role in driving this growth, with Ethereum leading in trade volume and both platforms maintaining high NFT transaction volumes. Despite their dominance, it will be interesting to see how Ethereum, Polygon, and other EVM chains continue to evolve and compete in the rapidly changing blockchain landscape.

Crypto

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