Ethereum and Polygon Sustain Dominance in Attracting New Users and Boosting Trading Volumes on EVM Chains, According to Flipside Report”
The latest report from Flipside, titled “New EVM Users: Q1 Snapshot,” reveals that Ethereum and Polygon continue to lead the pack in attracting new users and driving trading activity on Ethereum Virtual Machine (EVM) chains. As of March 27, Ethereum welcomed 13.4 million new users, closely followed by Polygon with 12.3 million, collectively representing approximately 70% of the total influx of new EVM users in the first quarter of the year. In comparison, Arbitrum saw a moderate increase with 4.7 million new users since the start of 2024.
While Ethereum’s mainnet maintains its historical dominance, Layer-2 protocols are witnessing increased data processing. The decentralized finance (DeFi) sector remains a primary draw for new users, with Ethereum leading in trading volume, reaching $12 billion in Q1.
The report highlights a consistent upward trend in DeFi activity, indicating a growing interest and involvement among newcomers in the blockchain space, contrasting with the volatile swings of the previous year.
Arbitrum ranks second in terms of new user acquisition, attributed to heightened activity within its DeFi ecosystem. Meanwhile, Polygon’s surge in new users is linked to the rising popularity of non-fungible token (NFT) activities.
Base has experienced remarkable growth, nearly octupling its new user base since January, driven by Coinbase’s efforts to simplify cryptocurrency for beginners.
Despite Ethereum’s popularity, Base demonstrates more evenly distributed app adoption among its users, indicating reduced early mover advantages and preventing user consolidation around a single app.
Token swaps and bridging apps serve as common entry points for new users across EVM chains, with Uniswap and Orbiter Finance leading on Ethereum and Base, respectively.
The report also sheds light on NFT trading activity, revealing steady growth on Ethereum and Base, while Polygon experiences fluctuations from its peak, suggesting a potential shift in market dynamics in the upcoming cycle.
Furthermore, the report emphasizes the influence of specific applications in directing user activity on various chains, showcasing the long-term community interest in projects like Worldcoin (WLD) among new Optimism users.