January 27, 2024

On-chain Crypto User Base Surges by 62 Million in 2023

Ethereum led with 15 million acquired on-chain crypto users, while Solana picked up 5.6 million.

According to a recent report from Flipside Crypto, an on-chain analytics platform, 2023 witnessed unprecedented success for the crypto industry, attracting a staggering 62.1 million new users.

Ethereum claimed the top spot by acquiring 15.4 million users, followed closely by Polygon with 15.2 million, and Bitcoin securing the third position with 10.7 million. Notably, Solana experienced a resurgence in 2023, ranking fifth among the eight blockchains studied, with an acquisition of 5.6 million users. A significant portion of Solana's new users, over 45%, joined the platform in the months of May and December.

Flipside Crypto defines an acquired user as a blockchain address initiating its second transaction in 2023.

Traditionally, determining a blockchain's user count has been challenging due to the ability of a single user to control multiple addresses. This makes it difficult to pinpoint an exact figure, as some crypto participants create numerous wallets to maximize potential returns from airdrops.

Flipside's findings reveal that 86.9% of Ethereum Virtual Machine (EVM) users remained loyal to a single platform in 2023. The EVM, initially associated with Ethereum, has been adopted on layer 2s like Arbitrum and Optimism, as well as layer 1s like Avalanche.

This contrasts with a trend identified in a report by the venture firm Electric Capital, indicating that developers are increasingly deploying their code across multiple blockchains.

Looking ahead, Flipside predicts that, similar to developers, users will embrace multiple chains if a crypto bull run reemerges.

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