Developers Are Fleeing Crypto: 40% Gone In Just One Year!

The activity of developers in Web3 has dropped by 40% in a year, signaling a crisis within the ecosystem. If this trend persists, innovation in the crypto space could suffer. More details in the following paragraphs!

Why has crypto developer activity dropped?

In March 2023, the crypto ecosystem had about 12,380 active developers per week. According to data from Artemis Terminal, this number currently stands at 7,600. This represents a decline of 38.6%, illustrating a silent exodus of crypto developers.

According to crypto analysts, the decrease in activity results from the emergence of projects focused on narratives rather than concrete innovations. They particularly point to memecoins which have become one of the most profitable sectors of Web3.

They indeed believe that these new digital assets divert developers’ attention from blockchain projects that have a real and lasting impact. But not just that! This trend also shows that speculation is taking precedence over technical innovation.

Calls for a return to innovation and developer-centered narratives

To counter this trend, it is imperative to redirect efforts towards crypto development focused on real and viable products. In this sense, Binji Pande (a contributor to Optimism) advocates:

• increased support for developers;
• a more holistic vision of product development.

According to him, innovation on the blockchain should not be limited to ephemeral projects. Instead, it should aim to meet real user needs. This could restore the “futuristic” character of crypto blockchain and reestablish its central role in technological innovation.

Some members of the crypto community propose another solution: revalue developers by offering them incentives that go beyond simple speculative gains. This involves establishing targeted funding for infrastructure projects aimed at solving long-term problems.

For others, calls for innovation should be accompanied by:

• better recognition of crypto development teams;
• the need to rethink the funding model for projects.

This paradigm shift could indeed restore confidence to developers and enable them to focus on truly revolutionary products.

One thing is for sure: the Web3 is currently going through a tough time. That said, there are still solutions to give a boost to the crypto ecosystem. Stay tuned!