- The crypto bear market led to a 24% drop in active developers since late 2022, now standing at 22,000 across blockchains
- The decline was likely due to the collapse of LUNA, UST, and FTX damaging crypto’s reputation; newer developers left while experienced ones remained
- While Europe has the most developers, geographic diversity is improving with Asia, Africa, and Latin America rising; activity is spreading across multiple blockchains beyond just Bitcoin and Ethereum
The crypto bear market that began in 2022 has led to a significant drop in active developers. However, there are some positive signs about the health and growth of the overall crypto ecosystem.
The Decline in Developers
A 24% drop occurred in active open-source crypto developers from late 2022 through 2023. The total now stands at just over 22,000 across various blockchains.
The Cause of the Decline
The decline was likely driven by the collapse of LUNA and UST in May 2022 and FTX in November 2022. These events damaged crypto’s reputation and stunted industry growth.
Experience Matters
Over 52% of new crypto developers with 1 year or less experience left by December 2023. But developers with 1-2 years dropped only 1%. Those with over 2 years grew 33%.
Geographic Diversity Improving
In 2018, 40% of crypto developers were from the U.S. By 2023, that dropped to 26%. The share of developers from Asia, Africa, and Latin America rose from 18% to 36% in the same period.
Europe Still Leads
Europe continues to produce the most crypto developers globally, making up 34% in 2023.
Beyond Bitcoin and Ethereum
34% of developers now work on multiple blockchains, showing the growth of the multi-chain ecosystem.
Ethereum remains the top blockchain for developers. But Polygon, Solana, BNB Chain, Cosmos, and others saw major upticks in new contributors.
Base Coin Surges
Base Coin, Coinbase’s Ethereum layer-2 network, grew the fastest in 2023. 999 unique developers contributed over the last 3 months.
Bitcoin Stagnates
Despite its status, Bitcoin lags in attracting new developers, getting only 2% in 2023. Its ecosystem is maintained by just over 1,000 core developers now.
Conclusion
While the crypto winter has impacted developer activity, the overall ecosystem still shows signs of health and diversity across an expanding set of blockchains. The future remains bright for builders in the space.
