Comparing New User Expansion in Ethereum, Polygon, and Arbitrum: Insights from NFT and DeFi Activity

The latest data shows a notable discrepancy in new user expansion between NFT activity and DeFi across different blockchain networks. In the first quarter of 2024, Ethereum and its Layer 2 scaling solution, Polygon, attracted the largest influx of new users. According to Flipside's report, Ethereum and Polygon collectively amassed 13.4 million and 12.3 million new users, respectively, making up approximately 70% of the total new user base across observed chains by March 27. Arbitrum followed closely behind, attracting 4.7 million new users during the same period.

Despite Ethereum and Polygon's substantial user bases, their growth rates in new user volume between January and March 2024 ranked them moderately among other observed chains, with a 298.3% and 359.7% increase, respectively. This dominance is largely attributed to their established histories compared to most EVM chains.

DeFi emerged as the primary driver of new user expansion across various blockchain networks this year, with Ethereum leading in cumulative trade volume, surpassing $1 billion. March witnessed a peak in trading activity across all chains, with Ethereum recording its busiest trading day on March 5, exceeding $428 million in volume.

While Arbitrum lagged behind in new user acquisition, it ranked second in new user trading volume, accumulating $9.5 billion since the beginning of 2024. This discrepancy was attributed to Polygon's high NFT trading volume, which peaked at $6.3 million in early January, contrasting with Arbitrum's lower daily high of $229,000 in mid-February.

Regarding NFT activity, there were mixed patterns in new user engagement across different networks. While Ethereum and Base experienced steady growth in NFT trading activity, Polygon witnessed a decline since the beginning of the year. Ethereum maintained consistent daily NFT transaction volumes above $1 million, whereas Polygon's peak in early January exceeded $6 million before declining to less than $500,000.