The year 2023 has brought significant transformations to the Ethereum blockchain ecosystem, redefining the dynamics of user engagement and activities. According to a recent report by Nansen, the Ethereum network has experienced a substantial surge, with over 300,000 daily active addresses.
Within this surge of activity, the decentralized finance (DeFi) sector has maintained its dominance, standing out as the primary force in on-chain activities. As of October 12th, 2023, DeFi users have outstripped both NFT and layer 2 scaling users by more than two-fold, cementing the pivotal role of the DeFi sector.
“Layer 2, Bridging, and Infrastructure” Sector Flourishes
The Nansen report highlights the significant growth in the adoption of layer 2 scaling solutions. This shift is reflected in the increasing number of new users gravitating towards layer 2 platforms. Notably, these users are choosing layer 2 as their preferred onboarding option.
This transition is part of a larger trend where the user base for layer 2 and scaling solutions has seen substantial expansion, driven by the integration of more efficient layer 2 infrastructure and the allure of potential airdrop opportunities.
A closer examination of entity interactions validates these trends. While various sectors have witnessed growth in incoming transaction counts throughout the year, the “Layer 2, Bridging, and Infrastructure” category has stood out with an impressive 149.28% increase.
NFT Sector Faces Decline, While DeFi Stays Resilient
The NFT sector, which had occasionally outpaced DeFi in user count in 2022, has experienced a marked decline since the outset of 2023. The daily user count in this sector has plummeted by over 50% during this period.
This stands in stark contrast to layer 1 and scaling users, which saw significant growth in March, coinciding with the public mainnet launch of zkSync and Arbitrum’s airdrop, before retracing to previous levels in May.
Consequently, the number of users in the “scaling” category surged once more and has remained relatively stable since June. Importantly, the DeFi user group has asserted its dominance among these segments.
The report notes, “Another interesting observation is that the DeFi user count appears to have reached a ‘cruise’ speed, maintaining levels slightly below those seen during bullish market conditions.”
In contrast, the “NFT, Gaming, and GambleFi sector” has experienced a 61.4% decline in activity, mirroring the decrease in new users focusing on NFTs.
Furthermore, the number of users engaging with NFT entities has continued to dwindle throughout 2023. This reflects the waning appeal of the NFT sector for new wallet holders. At the beginning of the year, NFTs accounted for more than 24% of initial actions by new users. However, by October 12th, this figure had shrunk to slightly over 6%, underscoring the shifting interest away from NFTs.
