Ethereum and Polygon continue to attract new users and increase trading volumes, outperforming newer Ethereum Virtual Machine (EVM) chains, according to Flipside’s “New EVM Users: Q1 Snapshot” report.

As of March 27, Ethereum had 13.4 million new users, while Polygon had 12.3 million, representing around 70% of the total new EVM users this year. In comparison, Arbitrum added 4.7 million users since the start of 2024.

Ethereum remains dominant in the mainnet, but Layer-2 protocols are handling more data. Decentralized finance (defi) is a major draw for new users, with Ethereum leading in trading volume at $12 billion in Q1.

The surge in defi activity signals a growing interest in DeFi among newcomers in the blockchain space. Arbitrum ranked second with a $9.5 billion increase since the beginning of 2024, attributed to new user activity in the defi sector. Meanwhile, Polygon’s high new user numbers are linked to increased NFT activity.

Base saw a significant growth in new users, reaching a record 243,000 as of March 16, thanks to Coinbase’s efforts to simplify cryptocurrency for beginners. Despite lagging behind leading EVM chains in overall new user volume, Base’s growth is commendable.

New users are engaging with a variety of decentralized applications (dApps) on Ethereum, with Base showing a more evenly distributed app adoption compared to Ethereum.

Token swaps and bridging apps are popular entry points for new users on EVM chains, with Uniswap and Orbiter Finance leading on Ethereum and Base, respectively.

NFT trading activity across EVM chains shows varied trends, with Ethereum and Base seeing steady increases while Polygon experiences a decline from early peaks. This indicates a shifting interest in NFTs and suggests they may not dominate the market narrative in the future as they did before.

The report also highlights specific applications driving user activity on different chains, such as Worldcoin attracting new Optimism users. This suggests potential ecosystem evolution differences among EVM chains.

Overall, the data indicates a dynamic and evolving landscape in the cryptocurrency space, with Ethereum and Polygon leading the charge in attracting new users and trading volumes.

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