The Number of Active Crypto Developers Hits Lowest Point Since 2020
The number of active open-source developers in the crypto industry has reached its lowest point since 2020, according to Web3 VC firms Andreessen Horowitz (a16z) and Electric Capital. The State of Crypto Index from a16z reveals that the number of crypto coders has nearly halved from its peak last year, dropping from 36,500 active developers in January 2022 to just 19,630 in September 2023. This decline is reminiscent of the period near the start of the crypto bull market in December 2020 when there were around 18,100 developers before a surge in activity.
While a16z Crypto’s Paul Cafiero confirmed the accuracy of the data, CTO Eddy Lazzarin pointed out on Twitter that it may not provide a complete picture. He explained that they track active crypto developers using Electric Capital’s ecosystems project, which identifies crypto-related Github repositories and monitors the number of active developers working with each one. However, Lazzarin expressed curiosity about how much crypto development is happening outside of the open source infra repositories they track.
Open Source Development and Shifting Focus to the Application Layer
In the crypto industry, “open-source” development refers to writing source code that is easily accessible and freely distributed. Many crypto founders prioritize open-sourcing their projects to promote decentralization and trust rather than claiming them as intellectual property. While factors such as market conditions may have influenced the decline in developer count, a16z suspects that more developers are shifting their focus to the application layer of crypto. They believe that activity is increasing in this area but is challenging to track on an individual developer basis.
Lazzarin highlighted several a16z-funded projects like Blackbird, Story Protocol, Proof of Play, and IYK, which primarily operate in the app layer and utilize private repositories. This suggests that development activity may be happening outside the scope of the open-source repositories they monitor. However, other data from a16z, such as crypto developer library downloads, indicates that overall crypto development is still on the rise.
Measuring Development Activity Instead of Developer Count
A spokesperson for a16z explained that tracking the number of developers alone may not provide an accurate measure of development activity. They emphasized that it is essential to consider the amount of activity occurring rather than simply counting developers. For example, one developer may only make one commit while another works full-time on a project, yet they are counted equally in terms of developer count. By focusing on metrics like library downloads, a16z believes it offers a better reflection of the actual development happening in the crypto industry.
Hot Take: The Shifting Landscape of Crypto Development
The decrease in active crypto developers highlights the evolving nature of the industry. As crypto continues to mature, developers are exploring new avenues beyond open-source repositories. The shift towards the application layer demonstrates a growing focus on building practical solutions and user-friendly experiences within the crypto ecosystem. While traditional measures like developer count may show a decline, alternative indicators like library downloads indicate that development activity is still vibrant and progressing. As the crypto space expands and diversifies, it becomes crucial to adapt measurement methods to capture the full spectrum of innovation happening within this dynamic sector.
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