**Ethereum’s ERC-4337 Smart Accounts Struggle with Adoption, Data Shows**
Ethereum’s ERC-4337 standard, which allows for “smart accounts” to bypass the use of seed phrases and signing for certain transactions, has not seen the rapid adoption that was initially anticipated. According to John Rising, an advocate for Ethereum account abstraction, the adoption of ERC-4337 has been far from ideal, with data showing a decline in users, low transaction activity, and poor operational costs for core infrastructure providers.
Rising shared data points on Twitter, revealing that monthly account retention for smart accounts has been “terrible,” with only 6.89% of the initial smart accounts remaining active for more than six months. He also highlighted that bundlers, which are core infrastructure components allowing smart accounts to function on Ethereum Virtual Machine-compatible chains, were largely unprofitable, despite some projects accidentally overpaying in gas to the bundlers. Additionally, the average smart account was found to have only sent five user operations.
Despite these sobering numbers, some industry insiders, such as Coinbase protocols lead Jesse Pollak, believe that the adoption of the new technology will happen “slowly, then suddenly.” Pollak pushed back on Rising’s description of the numbers, stating that growth seems to be healthy and standardization is happening, with more and more teams making the jump to ERC-4337.
Data from Dune analytics showed that August was the largest month for active account abstraction wallets, with over 420,000 active smart accounts across seven blockchains. However, active smart accounts have been on a somewhat steady decline, with 143,000 monthly active accounts recorded in October.
The struggle with adoption of ERC-4337 smart accounts raises questions about the future of this technology and its potential impact on Ethereum and other EVM-compatible blockchains.
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