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DeFi, Not NFTs And Gaming, Has Become Main Gateway For New Blockchain Users: Study

Published Oct 24, 2023 21:29 Updated Oct 24, 2023 22:40
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© Reuters. DeFi, Not NFTs And Gaming, Has Become Main Gateway For New Blockchain Users: Study

Benzinga - by Murtuza Merchant, Benzinga Staff Writer.

Decentralized finance (DeFi) is the primary entry point for new users in the blockchain ecosystem.

That's according to a study conducted by data analytics platform Nansen, which discovered that an average of 63% of a new user's first on-chain actions are associated with DeFi counterparties.

This significantly overshadows scaling and NFT entities.

With DeFi maintaining its dominance, this emerging trend is expected to be a key topic of discussion at the upcoming Benzinga's Future of Digital Assets conference scheduled for Nov. 14. Industry leaders and blockchain enthusiasts are eager to delve into the findings and explore the future implications for the broader crypto ecosystem.

Nansen's research sheds light on the topic of what constitutes a daily active user on a blockchain.

The report categorizes daily active users (DAUs) into specific sectors, while evaluating on-chain behavioral patterns:

Also Read: EXCLUSIVE - Bitcoin's Path To Global Reserve Status; Xapo Bank CEO Shares Insights

Key insights from the study:

  • 'Layer 2, Bridging, and Infrastructure' surged as the fastest-growing sector in 2023, boasting a 149.28% growth year-to-date (YTD).
  • This reflects a growing inclination towards scalability and DeFi solutions.
  • NFT and gaming witnessed a significant decline of 61.4% YTD in 2023, indicating a potential wane in interest or saturation in the market.
  • DeFi user counts consistently overshadow other sectors. As of Oct. 12, there were 92,333 DeFi users, compared to 19,525 NFT users and 20,914 L2/Scaling users.
New users expressed a declining interest in NFTs, but show an increasing trend towards Layer 2 solutions.

This shift is in line with the broader trend where L2/Scaling user counts have soared, reflecting advancements in Layer 2 infrastructures and potential attractions like airdrops.

Read Next: North America Leads In Crypto $1M+ Transactions As Stablecoins Dominate: Report

Join Benzinga's Fintech Deal Day & Awards on Nov. 13 and Future of Digital Assets on Nov. 14 in New York City to stay updated on trends like AI, regulations, SEC actions and institutional adoption in the crypto space. Secure early bird discounted tickets now!

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

DeFi, Not NFTs And Gaming, Has Become Main Gateway For New Blockchain Users: Study
 

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