The Crypto Developer Exodus: A Closer Look
In the past year, crypto has witnessed a significant decline in the number of active, open-source developers. According to a report from Electric Capital, there has been a sharp 24% drop in the number of developers since the end of 2022, leaving just over 22,000 currently operating in the industry. This decline can be attributed to the crypto winter that followed the collapse of UST and LUNA in May 2022 and FTX in November of that year.
Fairweather Builders vs Experienced Developers
While this decline may seem concerning, it is important to note that the majority of developers who left the industry were inexperienced fairweather builders. Over 52% of new crypto developers with one year or less of experience left by December 2023. In contrast, developers with one to two years of experience only saw a marginal 1% decrease, while those with over two years of experience grew by an impressive 33%.
Changing Geographic Landscape
The geographic diversity of crypto developers has also evolved over time. In 2018, US-based developers made up 40% of the global crypto developer community. However, this figure dropped to 26% by 2023. On the other hand, non-Western countries in Asia, Africa, and Latin America have seen a significant increase in their share of crypto developers, rising from 18% to 36%. Europe remains the leading producer of crypto developers, accounting for 34%.
Diversification Among Blockchains
Crypto developers are also diversifying their focus across multiple blockchains. As of 2023, 34% of all builders work on multiple chains. Ethereum remains the most popular blockchain among developers, attracting over 8,000 contributors last year. However, scaling networks like Polygon and Solana have experienced a surge in new contributors. Other notable blockchains with significant developer activity include BNB Chain, Cosmos, Arbitrum, Polkadot, NEAR, Avalanche, Optimism, and Internet Computer.
The Rise of Base and the Decline of Bitcoin
Base, Coinbase’s Ethereum layer-2 network, emerged as the fastest-growing crypto ecosystem in 2023. With 999 unique developers contributing to Base in the last quarter of the year, it made a significant impact after its launch in August. In contrast, Bitcoin saw a decline in developer interest. While once attracting the most new developers among all blockchains, it now only accounts for 2% of new developer activity. The Bitcoin ecosystem is primarily maintained by a core group of just over 1,000 developers.
Ordinals on Bitcoin
Interestingly, less than 10% of Bitcoin developers work on Ordinals—digital assets inscribed in small denominations of BTC similar to NFTs. Despite this low figure, Ordinals have consistently contributed to over 50% of transaction traffic on the Bitcoin network.
Hot Take: Crypto Development Trends Reflect Resilience
The decline in crypto developers may seem concerning at first glance. However, when examining the data more closely, it becomes apparent that this decrease is primarily driven by inexperienced builders who quickly exited the industry during the crypto winter. Experienced developers continue to thrive and contribute to various blockchains. Additionally, the geographic landscape of crypto development is diversifying globally. These trends highlight the resilience and growth potential of the crypto ecosystem.
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