When ERC-4437 was introduced in March 2023, there was high optimism within the Ethereum community that it would revolutionize user experiences on Ethereum-compatible blockchains. The concept of “smart accounts,” which allow assets to be controlled by smart contracts instead of externally owned accounts (EOAs), was expected to enhance transaction ease and security for everyday users.
However, according to data analytics platform BundleBear, the usage and retention of these smart accounts have been disappointingly low. Only 6.89% of the initial smart accounts created have remained active for over six months. On average, ERC-4437-enabled accounts have conducted a mere five transactions each.
These poor engagement numbers are surprising considering the touted benefits of ERC-4437, such as bypassing seed phrases and simplifying transactions. The standard was specifically designed to make Ethereum more user-friendly, but it seems that the user experience goals have not yet been achieved.
Additionally, the core infrastructure providers enabling this functionality have struggled to turn a profit. Bundlers, which facilitate the operation of smart accounts on EVM chains, are experiencing losses even with some users accidentally overpaying gas fees.
John Rising, an advocate of ERC-4437, described the adoption figures as “terrible.” Despite the enthusiastic launch and promotion, the standard has failed to deliver the promised advancements in Ethereum user experience.
The Need for Patience and Infrastructure Support
Some members of the Ethereum community believe that patience is required with ERC-4437. Jesse Pollak, protocol lead at Coinbase, argues that the adoption of new standards tends to happen gradually before reaching an inflection point. While the growth of ERC-4437 may seem slow at the moment, it could suddenly accelerate as more developers build supporting infrastructure.
The month of August 2023 saw the highest activity of ERC-4437 wallets, with over 420,000 across seven different blockchains. Although this number decreased to 143,000 in October, it still indicates a steady initial adoption. Considering that ERC-4437 was launched in 2023, Pollak believes that the uptake remains healthy, even if it falls below initial expectations.
The upcoming months will play a crucial role in determining whether ERC-4437 delivers on its promise to enhance user experiences on Ethereum. Currently, adoption remains slow. However, Ethereum’s history has shown that community standards like ERC-20 took time to gain traction before transforming the ecosystem. Advocates of ERC-4437 are still confident that this latest standard will eventually catch on in a similar fashion.
