VC firm Electric Capital says crypto developers are growing in numbers amid the bear market. In a report, the company noted that developers are helping them grow faster by focusing on alternative ecosystems to Bitcoin and the leading altcoin Ethereum.
“Increasing developer numbers during bear market cycles”
cryptocoin.comAs you follow from , 2022 has witnessed a tough winter market. However, Electric Capital, a crypto venture capital firm, said in a new report that blockchain, crypto and Web3 developers continue to build their ecosystems in 2022, even in the face of a brutal crypto winter. According to the VC firm’s 2022 Electric Capital Developer Report, amid the significant drop in crypto prices in 2022, there was an 8% year-over-year increase in full-time developers working in different Blockchain ecosystems. Last year also hit an all-time high with nearly 61,000 developers contributing code for the first time across all ecosystems.
Maria Shen, partner at Electric Capital and author of the study, says developer growth in 2022 is in line with similar patterns in previous bear market cycles. For example, in 2018 full-time developers joined the industry to commit code to new ecosystems despite all-time low cryptocurrency prices. Maria Shen explains:
Every time we enter these bear market cycles, we actually experience a step function increase in developer numbers. They come and stay there even though the prices have dropped. That’s a great thing.
Altcoin projects attracting more attention in this field
Maria Shen says alternative ecosystems to Bitcoin and the leading altcoin Ethereum are growing rapidly and will be worth following in 2023. In fact, only 28% of developers contributed code to the Bitcoin and Ethereum ecosystems in 2022. Most developers have worked on the other top 200 altcoin project ecosystems. The report shows that these two are the most mature ecosystems in the industry. However, it means that most developers in the Blockchain industry are working to create emerging ecosystems that are not Ethereum and Bitcoin.
Some of these ecosystems that seem to be getting more attention are communities on Solana (SOL), Polygon (MATIC), Cosmos (ATOM), and Polkadot (DOT) Blockchains. According to the report, each community increased their total number of developers by 83%, 40%, 25% and 2% respectively in 2022. The emergence of new ecosystems is a sign that developers are experimenting with new technologies and creating environments that are becoming more important in the crypto industry. Shen comments:
I think it’s really remarkable that seven years ago we had 1,000 monthly active developers, and then in the last two years, 100,000 new developers got their heads up and decided to write some code. This is becoming a very important open source community.
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