Research from Electric Capital’s ‘Developer Report’ reveals that there has been a significant decline of nearly 50% in the number of new developers entering the cryptocurrency sector over the past year.
The most recent assessment of the cryptocurrency developer ecosystem suggests that experienced developers who have been working in the industry for over a year contribute more code and dedicate more working days compared to developers who have recently joined and exited the industry.
Based on the data, the cryptocurrency ecosystem currently has an estimated 21,300 monthly active open-source developers as of June 1 2023. However, there has been a decline of 22% in the number of developers since June 2022 within the cryptocurrency space.
The developers who had worked in the cryptocurrency industry for less than a year, categorized as ‘newcomers,’ have left the space. However, their departure had a relatively minor impact since they accounted for less than 20% of all code commits over the past 12 months.
Cryptocurrency developers with long-term experience, having worked in the industry for more than a year, are accountable for over 80% of the committed code within the ecosystem.
According to the report, it is estimated that approximately 7,700 newcomer developers have exited the cryptocurrency space since June 2022. On the other hand, there has been an increase of 1,650 emerging developers with up to two years of experience in the industry, and an increase of 150 established developers with over two years of experience in the cryptocurrency space.
The decrease in newcomer developers can be attributed to a reduced number of coders venturing into the cryptocurrency space. This decline has been further exacerbated by an ongoing bear market that has negatively impacted the broader cryptocurrency markets.
It is observed that newcomer developers tend to enter the cryptocurrency sector during market peaks. For instance, six months after the cryptocurrency market peak in January 2018, newcomer developers accounted for a 70% dominance. Similarly, following the market all-time high in November 2021, there was a 60% dominance of newcomer developers in the six months that followed.
Conversely, during bear market phases in the cryptocurrency space, it is common for emerging and established developers to assume a more prominent role.
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