Hardly Anyone is Using ERC-4337 Smart Accounts – Find Out Why

ERC-4337 Adoption Struggles

John Rising, an advocate for Ethereum account abstraction, has shared some “sobering” numbers that reveal the poor adoption of ERC-4437. On X (formerly Twitter) Rising shared data points that showed ERC-4337-enabled smart accounts were struggling with user retention, low transaction activity, and high operational costs for core infrastructure providers.

When ERC-4337 was launched on March 1st at WalletCon in Denver, many were optimistic that the ”smart accounts” would be widely adopted as the tech allows users to bypass the use of seed phrases and signing for certain transactions which would improve the user experience on Ethereum Virtual Machine-compatible blockchains.

Rising used figures from account abstraction data platform BundleBear to show that monthly account retention had been “terrible” with only 6.89% of all the initial smart accounts remaining active for more than six months.

Crypto Adoption Growing

Despite some projects paying “too much” in gas to the bundlers, the core infrastructure components that enable smart accounts to function on EVM-compatible chains were found to be largely unprofitable. On average, the smart accounts only sent five user operations.

However, Jesse Pollak, Coinbase protocols lead and Base creator, argued that the adoption of the new crypto technology would happen “slowly, then suddenly”. He said, “Just seems very early. Growth seems to be healthy, standardization seems to be happening, More and more teams I’m talking to are making the jump.”

This shows that the crypto platform is gaining traction and is moving towards becoming a real-time, AI-driven technology.

Data from Dune analytics revealed August to be the month with the highest number of active accounts utilizing smart wallets, with more than 420,000 active accounts across seven blockchains. Subsequently, active smart accounts have been on a slow decrease, with 143,000 monthly active accounts recorded in October.

The crypto world is constantly evolving, with new projects, technologies, and platforms being developed. Core crypto, web 3.0 components, and AI technology are all playing a part in the development of the industry.

Twitter is a great platform to stay up to date with the latest crypto news, Coinbase is a great platform to buy and sell crypto, and real-time crypto data can be found across multiple sources.