A Web3 developer’s platform, Alchemy, reported that the number of smart contracts put on Ethereum has increased by 40% since the end of the first quarter, despite this year’s 60% price jump on Ether.
According to some people, now is a good time for developers to make new products because of the bear market. According to the reports by Alchemy, the developers of new products due to its current market might already be happening.
The amount of Ethereum library induction has risen to 178% in 2022. In contrast, decentralized finance (DeFi) total-value locked (TVL) has dropped to 69%, and non-fungible token (NFT) trading volume has gone down around 88% from last year’s third quarter.
The head of growth at Alchemy, Jason Shah, informed CoinDesk that the most important lesson from the data about the crypto bear market is that prices have stopped being used as the only inducement to get into the space. Developers are instead going to Web3 for technological abilities.
“I think the best representation of that is that software developer kits (SDK) and smart contracts have more than doubled in their usage in the last year,” said Shah.
The data indicates that 736 smart contracts were distributed on September 17, 2022, an all-time monthly high. Shah ascribes this to the Ethereum Merge and high enthusiasm for developing decentralized apps on the new proof-of-stake chain.
“It’s bringing many more developers into the space, many more brands, frankly, who are conscious of the environmental impact of proof-of-work.”
Compared to the previous crypto bear markets, this crypto winter had been more hyped as the best time to develop Web3 products. Data from Alchemy indicates that the number of intelligent contracts distributed between 2018 and 2019 dropped by 45%. The number has risen by 50% this year, more than last year’s number of deployed smart contracts.
Causes of the Differences Between Crypto Bear Markets
According to Shah, this difference between bear markets is caused by three major factors:
- More advanced developer tools to promote building in the space.
- Higher long-term conviction in the digital assets ecosystem.
- A considerable number of Web3 educational resources.
As Shah stated:
“As a result [of these components], there’s no longer the same obstacles people may have had that led them to lose a little bit of faith in 2019, which you see in the data.”
Web3 Developers Thriving in the Bear Market
Web3 developers can survive and grow in the bear markets with the right support services and resources.
The crypto sector and the blockchain is, without a doubt going through difficult times, especially with the market dropping $2 trillion since its peak on November 21.
According to the Crypto Fear & Greed Index, investors are still “fearful” of the current bear market. However, learning from similar occurrences over the years, lack of hype and market vitality is suitable for building innovative technological solutions.
When the DotCom Bubble crashed in the early 2000s, firms like Google, Facebook, Cisco, Amazon, and e-Bay survived. Likewise, crypto projects like ChainLink, EOS, Polkadot, and Tron survived the 2017 ICO situation and the crypto winter that accompanied it.