Peak User Activity in Crypto
2023 was a landmark year for cryptocurrencies, with a massive surge in user engagement. In May, the number of active accounts reached a high of over 8.8 million across various blockchain networks. This increase in activity was consistent across most chains, showing that general market trends are still a significant influence in the crypto world.
A key highlight of the year was the emergence of ‘super users’ – those with more than 100 transactions in their wallets. Interestingly, these users were more involved in DeFi (Decentralized Finance) transactions than in trading NFTs (Non-Fungible Tokens). But there’s a twist: selling NFTs has become more popular on networks like Ethereum (ETH). This points to a shift, with NFT investments moving towards more cost-effective Layer 2 (L2) networks.
In 2023, new decentralized exchanges (DEXs) and NFT marketplaces emerged. However, user activity was still heavily concentrated on a few major platforms, like Uniswap and OpenSea. This trend, driven by factors such as the availability of assets, highlights that the crypto market is still developing, especially when compared to traditional finance. Super users also showed varied interests in different DEXs, with a noticeable trend towards selling NFTs.
Users of EVM (Ethereum Virtual Machine) primarily interacted with just one blockchain network, with a significant 86.9% sticking to a single chain. However, many users were also exploring multiple Layer 2 networks, especially between Polygon and other EVM-compatible layers. This indicates that users are getting more comfortable with cross-chain activities.
The subsequent surge in crypto popularity is expected to be fueled by various DeFi activities. This will likely challenge existing Layer 2 networks to reduce costs and improve user experiences, potentially leading to greater adoption of EVM. Moreover, the emergence of new blockchain networks catering to specific user needs is anticipated, paving the way for more specialized ecosystems and use cases in the crypto world.
