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Crypto Winter Increases Developer Numbers: Electric Capital Report

Delbert Williams IIBy No Comments3 Mins Read

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The idea that a bear market is good for builders, as the total number of monthly active Web3 developers increased by 5.4% to over 23,300 in the last 12 months, despite a nearly 70% drop in cryptocurrency prices seems correct.

“Full-time” developers contributing to 76% of Github commits also increased 15.2% to over 7,000, while “one-off” builders fell 6.2%, according to Electric Capital’s Jan. 16 report. Over 7000 people. 3,500 in the same period from December 2021 to December 2022

Cryptocurrency market capitalization started its long, steep decline from an all-time high (ATH) of $2.9 trillion in November 2021, but June 2022 sees the metric hit a record high of nearly 26,500. After that, monthly developer activity began to decline.

This decline is partly due to reduced developer activity in the Terra ecosystem after the catastrophic collapse that occurred in May. 2022.

Number of monthly active developers over time compared to crypto market capitalization. sauce: electric capital.

Over the next three months from June to September, there was a 26% decrease in weekly active Web3 developers.

However, 61,127 new Web3 developers will enter the industry in 2022. This is an all-time high and is up 25.8% from 2021.

In fact, more new Web3 developers deployed their first lines of open source cryptographic code in the past year (109,723) than between 2014 and 2020 (101,054).

The number of monthly active developers since Bitcoin was launched compared to when Ethereum and its smart contract features were introduced. sauce: electric capital.

Ethereum continues to dominate developer activity, with the number of full-time developers growing 9% to 1,873. This is more than the next top three ecosystems combined: Polkadot (752), Cosmos (511) and Solana (383).

However, developer expectations for non-Ethereum chains are catching up. While the Cosmos and Solana networks grew by 34% and 36% respectively, Starknet is one of the medium-sized ecosystems to see solid performance in 2022 with a 214% increase in the number of developers.

Related: Inside the Mind of a Blockchain Developer: Building Truly Free-to-Use DApps

The report also found that after Terra’s demise, only 28 (9%) of the original Terra developers stuck with Terra 2.0, while 143 developers (42%) dropped it and moved to other ecosystems. I discovered that

Many former Terra developers have migrated to Cosmos. That’s 42 of his 143, more than any other ecosystem.

Number of full-time developers in each ecosystem since launch date. sauce: electric capital.

Electric Capital explained that there are far more Web3 developers than the report describes because some projects are closed source.