Electric Capital’s semi-annual crypto industry developer report found that there were 21,300 monthly active open source developers as of June 1, 2023.
However, this figure has decreased by 22% year-over-year since June 2022. Those who left the space recently were newcomers who had been working in crypto for less than a year, it noted.
Also, they were only responsible for less than 20% of all code commits, so the declines aren’t as bad as they seem.
New crypto developers in decline
Developers who have worked in crypto for 12 months or more continue to build, contributing over 80% of code commits. The research analyzes GitHub activity over the period to derive these numbers from developer activity in the crypto space.
Another bullish statistic is that there are more developers active now than during the peak of the bull market two years ago.
The declines came on the heels of last year’s high-profile collapses, including Terra/Luna and FTX. However, the alumni stayed the course and continued to work on crypto projects, building through the bear market.
“Newcomer developers have declined as fewer new developers are trying out crypto,” the report notes. Additionally, he added that newcomers to bear markets have lower retention rates.
With that in mind, the declines of the past year are not unusual and mirror those of previous bear markets.
A related developer activity report from blockchain analytics platform Santiment revealed that the main platform for the metric is Polkadot.
The platform recorded a 30-day developer activity figure of 546 for Polkadot and its “canary network” Kusama, keeping the two at the top of the list above Cardano in third place.
Last month, Twitter co-founder Jack Dorsey announced plans to allocate more capital to Bitcoin developers with a pledge of $5 million.
The crypto market remains stable
Crypto markets remain in bearish territory at the moment, failing to break through resistance for the second time. This led to another pullback, with total capitalization currently down slightly to $1.21 trillion.
BTC and ETH haven’t budged much over the weekend, trading at $30,148 and $1,860 respectively.
All of the top twenty altcoins were in the red during the Monday morning Asian trading session as market sentiment continues to weaken.
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