Slow Uptake and Decline Marks ERC-4437 Adoption, Despite Optimistic Outlooks
Summary:
John Rising, an Ethereum account abstraction advocate, presents data revealing a less than successful adoption of ERC-4437, with low user retention, transactions, and high operational costs. Despite these discouraging figures, Jesse Pollak from Coinbase asserts the adoption of new technology would be a slow yet steady process. Data shows a consistent decline in the number of active account abstraction wallets since August.
John Rising, an advocate for Ethereum account abstraction, recently presented discouraging data revealing that the adaptation of ERC-4437 has not been as successful as anticipated. Rising, on November 14, discussed figures on X (formerly known as Twitter) which illustrated a decrease in users of ERC-4337-enabled smart accounts along with low transaction levels and high operation costs for essential infrastructure providers.
The ERC-4337 standard was announced unexpectedly on March 1 at WalletCon in Denver. There was much optimism at launch, with many forecasting fast acceptance of "smart accounts". This technology was believed to enhance user experience on Ethereum Virtual Machine-compatible blockchains by eliminating the need for seed phrases and signatures on certain transactions. Rising, while referencing data from account abstraction data provider BundleBear, reported that the retention of smart accounts was only a measly 6.89% six months after the initial setup.
However, an exception to this disappointing trend was CyberConnect, which reported a high return of users claiming an airdrop. Rising pointed out, however, that "bundlers" - key components of infrastructure that enable the functioning of smart accounts on EVM-compatible chains - were mostly not profitable. Many projects even paid excessively high gas fees to bundlers. Moreover, the average smart account was found to have executed just five user operations, which are transactions or activities triggered from the account.
Although Rising painted a bleak picture of the numbers, Coinbase's protocol head and Base's creator, Jesse Pollak, disagreed with Rising's negative assessment. Pollak argued that the adoption of this new technology would be a gradual process, initially slow but accelerating over time. He maintained a positive outlook, stating that there was healthy growth and standardization happening and he was witnessing more teams making the transition to ERC-4337.
According to Dune Analytics data, August recorded the highest number of active account abstraction wallets, over 420,000 across seven blockchains, but the number has been in consistent decline since, with October logging just 143,000 active accounts.
Published At
11/14/2023 4:38:13 AM
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