Patterns of User Behavior and Token Adoption on ERC20

Cryptocurrencies and Blockchain-based technologies are disrupting markets across the globe. While the potential development of such technologies remains unclear, there is a current need to understand emergent patterns of user behavior and token adoption in order to design future products and cryptocurrencies. In this paper, we analyze the social dynamics taking place on the Ethereum platform ERC20 during their daily operations. We study two months of transactions among users on ERC20 using network theory. We analyze structural properties of networks that emerge as users exchange digital tokens. Network science provides a framework to analyze the behavior of social groups, with emphasis on their interactions. We characterize user behaviors based on their network connectivity, portfolio diversity and patterns of token adoption. Our results show that while most users are specialized and transact with a few tokens, a few of them transact with diverse portfolios, bridging and interconnecting large parts of the network. We believe this work to be a foundation for unveiling the usage dynamics of cryptocurrencies networks.