The blockchain developer ecosystem is changing, with fewer developers entering the space and experienced developers dominating the work, Electric Capital research report shows.
Blockchain developers are key to the crypto industry. They create applications and tools that engage users and create value. More users attract more developers, thus creating a cycle of growth. However, despite cryptocurrencies' focus on decentralization, the developer market appears to be becoming more centralized, with experienced developers taking the lead, according to Electric Capital's recent report. research report.
Fewer active developers
The total number of active blockchain developers has decreased drastically. As of November 2022, there were more than 31,000 active developers. By November 2024, the number had dropped to 23,160, a 25% decline in two years.
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Part-time developers were hit the hardest. Their number fell from 16,600 in November 2022 to 12,386 in November 2024. Newcomer developers also saw a sharp drop: in November 2022, there were 18,547 newcomers when, two years later, the number was more than halved at only 8,986.
In contrast, established developers (those with two or more years of experience) are growing. During the same period, there were 6,903 established developers, and this number grew to 11,400 in just two years, an increase of 65%.
Andrew Morfill, CIO of Zodia Custody, the first digital asset custodian backed by Standard Chartered, says the decline in new and part-time blockchain developers “can likely be attributed to factors such as market volatility and/or increasing complexity.” due to market restrictions. maturation.”
“This complexity requires a deeper understanding of the technology, which can be daunting for newcomers. At the same time, this trend shows a consolidation of developers who are already in the market, committing and staying. It is also being seen in institutional clients, where those already in the market are doubling down, while new entrants are still on the sidelines and the tipping point for the next wave of adoption has not yet been fully reached.”
Andrew Morfill in conversation with crypto.news
Morfill suggested that developer activity typically lags broader market price trends, and predicted that the current decline “will likely reverse in the first half of 2025.” He also noted that while fewer new developers could “reduce the influx of new ideas and diverse perspectives,” the continued presence of experienced developers could foster an environment where “newcomers and part-timers have strong mentors.” and solid frameworks to build on.”
Meanwhile, Francesco Andreolí, head of the developer community at Consensys, attributed the decline in new and part-time developers to the “increasingly technical demands of blockchain projects,” which Andreolí said “often require specialized knowledge and a sustained commitment”.
“To counter this, more education, mentoring and tools for beginners are needed to attract the next wave of web3 talent and make the maturing industry more accessible. “It is crucial to strike a balance between leveraging experienced developers and nurturing new talent.”
Francesco Andreolí in conversation with crypto.news
Andreolí also highlighted the importance of ecosystem maturity and accessibility in blockchain development, noting that while tools for blockchain development are improving, they often “lack the polish and simplicity of more mature ecosystems,” which makes it difficult for part-time developers to contribute. effectively. To address this, Andreolí noted that “we are building pre-built environments like CLI to facilitate the onboarding of new developers and recreate optimal experiences for web2 developers, thus reducing barriers to entry.”
The head of the Consensys developer community also emphasized the need to combat the perception of exclusivity in blockchain development, which he said can “alienate newcomers, particularly those without deep technical training.” He advocated for fostering inclusivity and creating tools that “democratize access to blockchain development,” emphasizing that these steps are vital to fostering the innovation and diversity essential to the long-term growth of the industry.
Established developers gain share
Electric Capital’s “Developer Report 2024,” which analyzed 902 million code commits across 1.7 million repositories, shows the growing influence of experienced developers.
Established developers (those in crypto for more than 2 years) are at all-time highs, growing 27% year-over-year and committing 70% of code commits, according to the report.
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This means that while the overall number of developers is declining, experienced developers are taking on more of the work. The report also found that 39,148 new developers explored cryptocurrencies in 2024, although this growth among newcomers is not enough to offset the loss of part-time developers and those leaving the industry.
Andreolí warned that the change could centralize influence among a small group of taxpayers, creating risks for the ecosystem.
“The fragmentation of ecosystems, where developers need different skills, such as Rust for some chains and Solidity for others, creates additional barriers to collaboration and broader participation.”
Francesco Andreoli
Andreolí also expressed concern about the potential “homogenization of innovation,” noting that an over-reliance on experienced developers could lead to “solutions shaped by established paradigms, which could stifle creativity coming from new entrants and diverse backgrounds.” This, he suggested, could stifle the creativity that newcomers and people from diverse backgrounds often bring.
To mitigate these challenges, Andreolí underscored the importance of fostering cross-chain collaboration through open source projects, community-driven governance, and tools that promote permissionless innovation, emphasizing that such efforts “activate developers within communities.” , allowing them to become an integral part.” of the developer experience.
At the same time, Morfill believes that the growing dominance of experienced developers is a “natural sign of the industry's maturation,” adding that “decentralized development is something of a myth, given the small number of people running some of them.” entities worldwide”. core of the web3 and DeFi ecosystem.”
“Projects like Solana provide an excellent gateway to the next wave of adoption for developers, as well as projects and institutions, with ecosystems built around entities, projects and core protocols that will be key in 2025. This also means that the ability and cross-chain interoperability will take center stage and become essential for projects and entities that want to scale.”
Andres Morfil
Where the developers live
Blockchain development is global. Asia now leads developer participation. North America, once the top region, has fallen to third place. The United States remains the top country for blockchain developers, with 18.8% of the global share, although that is a big drop from 38% in 2015.
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India is emerging as a leader. In 2024, the country added the largest number of new developers, accounting for 11.7% of the global share. Other countries with significant developer bases include the United Kingdom (4.3%), China (4%), and Canada (3.8%).
Developers diversify across chains
Developers are working on more blockchain ecosystems than ever before. In 2015, less than 10% of developers worked on multiple chains. However, by 2024, one in three developers will work on multiple chains.
ethereum (eth) remains the largest ecosystem for total developer activity, data shows. However, Solana (SOL) is attracting more new developers as its developer base increased by 83% in 2024, making it the top ecosystem for newcomers. Meanwhile, bitcoin (btc) development remains stable, with 42% of developers working on scaling solutions.
Use cases expand
Different blockchains attract developers based on specific use cases:
- ethereum: It leads overall developer activity and remains a hub for decentralized finance.
- solarium: It dominates the use of decentralized exchanges and is a leader (64%) in low-fee use cases such as nft/meme coin minting.
- Coinbase Base: Responsible for 42% of the “new code being written in the ethereum ecosystem” and owns 97% of the nft minting volume.
Stablecoins and restaking are also growing sectors. Stablecoins now have over $195 billion in circulating supply and over $80 billion in daily transaction volume. The staking sector, led by projects like EigenLayer, increased its number of full-time developers by 130% in 2024, the report shows.
What this means for space
While the shift toward experienced developers shows the industry is maturing, it also raises concerns about centralization. As newcomers dwindle and established developers dominate, the industry could become less diverse.
This trend also reflects broader market challenges. The 7% decline in total developers in 2024 indicates that some are leaving due to market uncertainty or fewer opportunities, especially after the significant blow dealt by the collapse of FTX. The effects of the bankruptcy continue to affect the industry even today.
The Electric Capital report describes developers as a “leading indicator of value creation,” and emphasizes that a decline in developer participation could hinder blockchain innovation over time.
