New Crypto Developers Growing for the First Time since 2017: Electric Capital Report
Just as the price of Bitcoin and digital assets start surging, so does the talent which has been flocking back to the cryptocurrency market in the last few months.
Software developers are making their back into the world of crypto at a level that hasn’t been seen since the market peaked three years ago when the price was around its all-time high, just like the current scenario.
For the first time since 2017, the number of new developers has been increasing this year for over three months in a row, according to a report from Electric Capital.
With this new surge, a reversal has been seen in the sharp two-year decline in developer interest following the bear market of 2018.
According to Electric, a venture firm that invests in crypto startups, the number of new monthly crypto developers rose 15% in the first 10 months of 2020, while over 80% of all active developers coming in the last two years.
“Developers are one of the signals of quality in a crypto ecosystem,” said Maria Shen, a partner at Electric.
In the last three years, Bitcoin monthly active developers grew by over 70% but dwindled by nearly 12% in October year-over-year, found the report.
“In order for there to be network security or applications, developers need to build. Many projects like smart contract platforms rely on developers joining their ecosystem to be successful,” said Shen.
With Phase 0 of ETH 2.0 going live and all the DeFi development going in the DeFi space, it makes sense that coders are gravitating towards the second-largest crypto network and thriving decentralized finance sector.
Ethereum has seen over 300 developers joining per month, while the monthly active developers in DeFi have swelled by 67% since January. Compared to a total pool of active crypto developers at 9,000 a month, DeFi attracted over 900 developers in October.
“In decentralized finance, developers have seen they can launch a protocol and very quickly get usage,” Shen said.
Interestingly, the biggest ICO in history, EOS, sees its developer interest decline by 45% in the third quarter, with only 107 developers remaining.