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Flipside Report Highlights Cryptocurrency User Boom, DeFi Surpassing NFT Focus in 2023

The recent analysis by blockchain experts Flipside provides an in-depth perspective on the dynamic landscape of the cryptocurrency world in 2023, marked by substantial user growth and evolving trends.

According to the report, May 2023 witnessed a peak in acquired user volume, surpassing 8.8 million active accounts across various chains. The synchronized growth across multiple chains indicates that broader market sentiments are continuing to drive cryptocurrency adoption.

A notable observation is the activity of super users, defined by wallets with over 100 transactions. These users predominantly participated in DeFi-related transactions rather than focusing on NFTs. However, on Layer 1 networks like Ethereum (ETH), there was a trend reversal, with NFT sales being more common. This shift suggests a move of NFT investments to more cost-effective Layer 2 networks.

The report also highlights the rise of new decentralized exchanges (DEXs) and NFT marketplaces in 2023. However, user activity remained concentrated on a few leading platforms like Uniswap and OpenSea. This concentration, driven by factors such as asset liquidity, underscores the relative immaturity of the crypto market compared to traditional finance.

Super users exhibited varying preferences for secondary and tertiary DEXs, with a notable inclination towards selling NFTs. Ethereum Virtual Machine (EVM) users predominantly interacted with a single chain, with 86.9% sticking to one network. However, a substantial segment explored multiple Layer 2 solutions, particularly between Polygon and other EVM-compatible layers, indicating a growing comfort with cross-chain interactions.

The report anticipates that the next bull run will be driven by diverse DeFi activities, urging existing Layer 2 solutions to reduce costs and enhance user experiences. This competition is expected to propel EVM adoption, leading to the emergence of new chains catering to specific user needs and resulting in more specialized ecosystems and use cases.

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