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Ethereum User Trends in 2023
Jake Kennis
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Key Takeaways
7 min read

  • The 'Layer 2, Bridging, and Infrastructure' sector is the fasting growing sector year-to-date (YTD) in 2023 with a 149.28% increase in daily user activity, followed by the 'DeFi' sector with 52% growth, signaling an inclination towards scalability and DeFi solutions.

  • Despite the overall growth in most sectors, the 'NFT and Gaming' sector saw a significant decline of 61.4% YTD in 2023.

  • A new user's first action on-chain mostly comprises of DeFi counterparties, making up an average of 63% of users' first actions vs Scaling and NFT entities in 2023. This suggests that DeFi remains a dominant entry point for new users in the ecosystem.

Introduction

Currently, there is no clear definition of what a daily active user of a blockchain is, or what the user does on-chain. The number of active addresses on-chain is a flawed metric that is easily gamed and does not tell us much about general user behaviors or underlying patterns.

Our Approach

Many analytics platforms count an address with one or more outgoing transactions as a daily active user (DAU). This only tells us a little about what the underlying user is actually doing. To give user on-chain activity more color, we will group these DAUs into specific categories, and highlight visible on-chain behavioral patterns, utilizing our comprehensive entity label database. **This report attempts to deliver a more...