BundleBear

2024 Half-Year Report

Ever since the launch of the ERC-4337 standard in April 2023, more than 8 million accounts have been created and they've made 28 million user operations (UserOps). The BundleBear 2024 Half-Year Report aims to push past vanity metrics and offer deeper insight into how many “valuable users” are present in the ERC-4337 ecosystem and what those users are doing.

One way to segment accounts by “value” is to look at how often they transact. In this report, I will categorise smart accounts as follows:

  • Light users = 1 UserOp a month
  • Medium users = 2 to 10 UserOps a month
  • Heavy users = More than 10 UserOps a month
  • The BundleBear dataset includes all the ERC-4337 activity on Polygon, Optimism, Arbitrum, Base, Ethereum and Avalanche.

    Where are the Heavy Users?

    3% of monthly active accounts are Heavy users (10+ UserOps/month)

    Based on the past 3-month average

    91% of monthly active accounts are Light Users (1 UserOp/month). 6% are medium users (2-10 UserOps/month)

    Monthly Active Accounts by Category

    OCT 23NOV 23DEC 23JAN 24FEB 24MAR 24APR 24MAY 24JUN 240650,0001,300,0001,950,0002,600,000
    • 01 UserOp
    • 02-10 UserOps
    • More than 10 UserOps

    There are fewer heavily-used ERC-4337 accounts than heavily-used EOA wallets. 52% of monthly active EOA wallets make more than one transaction per month.

    Monthly Active EOA Wallets by Category

    Polygon, Base, Optimism, Arbitrum, Ethereum, Avalanche

    JAN 24FEB 24MAR 24APR 24MAY 24JUN 2409,500,00019,000,00028,500,00038,000,000
    • 01 transaction
    • More than 1 transaction

    Base has the most monthly Heavy Users

    Based on the past 3-month average

    In June 2024, Base had 74% of the monthly active Heavy Users (10+ UserOps/month). Polygon was second with 13%, and Arbitrum was third with 9%. This was a massive shift in the rankings because, up until May 2024, Polygon had been the consistent market leader in this category.

    Monthly Heavy Users by Chain

    OCT 23NOV 23DEC 23JAN 24FEB 24MAR 24APR 24MAY 24JUN 24020,00040,00060,00080,000
    • ETHEREUM
    • POLYGON
    • OPTIMISM
    • ARBITRUM
    • BASE
    • AVALANCHE

    Monthly active Medium Users (2-10 UserOps/month) follow a similar pattern. Base is currently their most used chain with 41% market share followed by Polygon with 28% and Arbitrum with 15%.

    Monthly Medium Users by Chain

    OCT 23NOV 23DEC 23JAN 24FEB 24MAR 24APR 24MAY 24JUN 24080,000160,000240,000320,000
    • ETHEREUM
    • POLYGON
    • OPTIMISM
    • ARBITRUM
    • BASE
    • AVALANCHE

    The Light Users (1 UserOp/month) are most active on Polygon. Polygon currently has 98% of the monthly active Light Users.

    Monthly Light Users by Chain

    OCT 23NOV 23DEC 23JAN 24FEB 24MAR 24APR 24MAY 24JUN 240650,0001,300,0001,950,0002,600,000
    • ETHEREUM
    • POLYGON
    • OPTIMISM
    • ARBITRUM
    • BASE
    • AVALANCHE

    What are the Heavy Users doing?

    Top 5 apps used by Heavy Users (Past 6 months)

    Project
    Anichess Orb Token Claim
    64654
    4594369
    Degen
    10978
    174212
    Superfluid
    9405
    1102769
    ALFA
    9373
    669326
    DEGENx
    9181
    49843
    Safe4337Module
    2964
    125258
    USDC
    2373
    25844
    OpenSocial
    2129
    81782
    Blocklords
    1414
    683973
    USDT
    1305
    14995

    In Q1 2024, the most popular activity for Heavy User accounts was farming NFTs on Anichess, a free-to-play chess game. Then in May, Alfafrens, a SocialFi app where users are streamed ALFA tokens using Superfluid and pay transaction fees in DEGEN, briefly became the #1 app for power users.

    Monthly Heavy Users by App

    Oct 23Nov 23Dec 23Jan 24Feb 24Mar 24Apr 24May 24Jun 24020,00040,00060,00080,000

    Top 5 apps used by Medium Users (Past 6 months)

    Project
    Anichess Orb Token Claim
    327699
    1193252
    xFANTV
    58220
    131110
    0x4e2f19b4496eeb9c04fd16327fe9fe0610721f9d
    25350
    88519
    Hedgey Finance
    24555
    49154
    Safe4337Module
    12467
    63542
    OpenSocial
    8884
    26230
    USDT
    7552
    18628
    USDC
    7388
    18823
    direct_transfer
    6535
    11586
    ManagedAccountFactory Thirdweb
    6367
    22579

    In Q4 of 2023, FanTV (a watch-to-earn India-focused streaming service) and CapX (users complete quests to earn tokens) were the most popular apps amongst Medium Users. In the first half of 2024, Anichess claimed the top spot, similar to what we saw with the Heavy users. FanTV briefly retook the top spot in April 2024 before being surpassed by Anichess again.

    Monthly Medium Users by App

    Oct 23Nov 23Dec 23Jan 24Feb 24Mar 24Apr 24May 24Jun 24080,000160,000240,000320,000

    Top 5 apps used by Light Users (Past 6 months)

    Project
    Piggybox
    3215288
    3215543
    Cyberconnect
    1478848
    1480664
    Burn Address
    621151
    621179
    xFANTV
    89688
    91436
    Anichess Orb Token Claim
    71747
    80240
    G1
    32346
    32719
    Safe4337Module
    27341
    28975
    0x4e2f19b4496eeb9c04fd16327fe9fe0610721f9d
    24206
    24855
    Jasper Vault
    13573
    13634
    PassportRegistry
    10972
    10972

    Cyberconnect (a crypto social app where every profile is a smart account) and FanTV drove most of the Light User activity in Q4 2023. In February 2024, Cyberconnect edged out FanTV and took the top spot by a wide margin. Then, Piggybox NFT rapidly grew to eclipse all other apps used by this demographic. Users receive these NFTs when they sign up for EARN'M, an app where you farm tokens by completing tasks like using different apps and following projects on Twitter.

    Monthly Light Users by App

    Oct 23Nov 23Dec 23Jan 24Feb 24Mar 24Apr 24May 24Jun 240650,0001,300,0001,950,0002,600,000

    Economic Impact

    $9.2M of tokens are held by ERC-4337 accounts

    Based on wallet balances for Base, Polygon, Arbitrum, Optimism and Ethereum

    Ethereum is currently the top chain by ERC-4337 TVL with more than $6M of funds held. Polygon is a distant second with $1.6M, followed by Arbitrum with $1M. Base is fourth with $273k and Optimism is last with $183k. This is interesting because Ethereum has less ERC-4337 activity than the other chains in the dataset, but the average account on Ethereum is wealthier than the average account on its L2s.

    Note: Allium’s token price dataset was used to calculate the USD value of wallet balances. This calculation will undercount reality because some tokens may not be present in the price dataset.

    TVL by Chain

    35% of ERC-4337 TVL is in rsETH

    More than 1,000 accounts on Ethereum hold a total of $3.2M rsETH, making it the #1 token contributing to ERC-4337 TVL. WAVX holds the #2 spot. The catch is that all $1.36M of WAVX is held by a single account on Ethereum (0x6e28..6c). ETH is in third place with $1.16M held by more than 23,000 accounts across Optimism, Ethereum, Base, and Arbitrum. USDT is in fourth place with $848k held by over 11,000 accounts on Arbitrum, Polygon, Ethereum, and Optimism.

    TVL by Token

    75% of accounts with non-zero balances hold less than $10

    Out of the ~55,000 smart accounts with non-zero balances, 2% hold more than $1000. This small group of $1000+ accounts is responsible for 86% of ERC-4337 TVL.

    Quantity of Accounts with Non-zero Balances

    99.4% of the deployed accounts currently don't hold any funds

    (or at least don't hold tokens for which we have price data)

    This makes sense when you consider that most ERC-4337 activity is driven by free apps. For example, creating a profile on Cyberconnect or claiming an Anichess NFT with your gas sponsored by the app doesn't require you to fund your account. Or you might be using an app like FanTV where you claim a token that can only be used for in-app activities and isn't traded on DEXs.

    ERC-4337 usage has consumed $3.2M of Gas Fees

    Based on the price of ETH/MATIC/AVAX at time of transaction

    Ethereum is the top chain by ERC-4337 bundler gas spend. Bundlers have spent over $1M bundling UserOps into transactions on Ethereum. Given Ethereum's higher gas fees compared to the L2s and alt-L1s in the dataset, it's not surprising it took the #1 spot. Base ranks second for ERC-4337 gas spending with $745K, and Arbitrum is third with $450K.

    Bundler Gas Spend by Chain