New Figures Reveal Disappointing Adoption of ERC-4337 Smart Accounts

Low Retention Rates and Limited Transaction Activity

The adoption of ERC-4337-enabled smart accounts has been far from ideal, according to new data shared by Ethereum account abstraction advocate, John Rising. The figures show a decline in users, low transaction activity, and poor operational costs for core infrastructure providers. Rising's data, sourced from account abstraction data platform BundleBear, reveals that only 6.89% of the initial smart accounts have been retained for more than six months.

Struggling Bundlers and Limited User Operations

The data also highlights that bundlers, which are essential components for smart accounts to function on EVM-compatible chains, have been largely unprofitable. Additionally, the average smart account has only executed five user operations, indicating limited user engagement.

An Optimistic Outlook for Adoption

Despite the discouraging numbers, Jesse Pollak, Coinbase protocols lead and Base creator, remains optimistic about the adoption of ERC-4337 smart accounts. He believes that adoption will happen gradually and then suddenly, emphasizing that it is still early in the process. Pollak notes that growth is healthy and standardization is taking place, with more teams expressing interest in making the switch.

Active Account Abstraction Wallets on the Decline

According to Dune analytics data, August saw the highest number of active account abstraction wallets, with over 420,000 active smart accounts across seven blockchains. However, the number of monthly active smart accounts has been steadily decreasing, with only 143,000 recorded in October.