Bitcoin and altcoins are on the rise. But certain altcoin projects are experiencing a broader recovery. This situation also attracted Nansen’s attention. According to the data, the Layer 2, bridging and infrastructure sector leads the 2023 growth with a daily user increase of 149.28%. Here are the details…
Nansen explained: These altcoins are on the rise
In 2023, the Ethereum Blockchain has witnessed intriguing transformations in the way users and entities interact. According to Nansen’s latest report, there has been a significant increase with over 300,000 daily active Ethereum addresses. Among these active addresses, DeFi assets maintained their position as the dominant players. As of October 12, 2023, DeFi users alone outnumbered NFT and layer 2 scaling users by more than double. Thus, it consolidated the sector’s central role in on-chain activities. Popular NFT coins include coins such as ICP, STX, RNDR, IMX, XTZ.
In terms of new users, layer 2 activity has increased significantly. According to Nansen’s report, this signals a shift towards scalability solutions, with new users increasingly adopting layer 2 platforms as their first choice. A closer examination of entity interactions confirms these trends. While almost all sectors have experienced year-to-date growth in the number of incoming transactions, the ‘Layer 2, Bridging and Infrastructure’ category leads with a significant increase of 149.28%. The most prominent altcoins in terms of Layer 2 were MATIC, MNT, OP, ARB, IMX.
NFT sector in decline, DeFi resilient
NFT users exceeded DeFi users at times in 2022 before beginning a sharp decline starting in 2023. In fact, the number of daily users in this sector has dropped by over 50% since the beginning of the year. This marks a reversal from tier 1/scaling users, who rose significantly in March to coincide with zkSync’s public mainnet launch and Arbitrum’s airdrop, before retracing their steps to previous levels in May.
Then, the number of users in the “scaling” category showed another increase and has remained relatively stable since June. It is important to note that the DeFi user group is the most dominant group among these clusters. “In addition, another interesting observation regarding the above is that the number of DeFi users appears to have reached a ‘cruising’ pace, remaining slightly below bull market levels,” Nansen said. says.
There are also those who experience decline
In comparison, the ‘NFT, Gaming and GambleFi sector’ saw a 61.4% decline in activity, reflecting a decline in new NFT-focused users. In the gaming field, SAND, AXS, MANA, GALA, FLOKI stand out. In the GambleFi field, coins such as RLB, FUN, DG, REKT attract attention. Moreover, the number of users engaging with NFT entities will continue to decline throughout 2023, underscoring the NFT sector’s declining appeal for new wallet holders. At the beginning of the year, NFTs accounted for more than 24% of new users’ first transactions, but by October 12, that figure had fallen to just over 6%.
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