Jhe 2021 crypto market bull run has seen a number of developers flock to cryptocurrency ecosystems, with platforms like Terra and Solana leading the way.
This data was compiled by venture capital firm Electric Capital which focuses on crypto-related projects. Although Bitcoin and Ethereum still dominate when it comes to attracting developers, it also forces innovation with new ecosystems constantly developing.
“Ethereum and Bitcoin continue to add developers growing 42% and 9%, respectively over 2021. Ethereum retains 30% of full-time developers who joined after 2017,” the report said. “Ethereum continues to have the largest ecosystem of tools, applications, and protocols, and is 2.8 times larger than the second-largest ecosystem. One in five new developers entering Web3 is working on Ethereum.”
As mentioned, in terms of cryptocurrency ecosystems, Ethereum still remains at the top of the list in terms of size. However, when looking specifically at the fastest growing systems, it’s important to look at where developers are flocking – in the case of Electric Capital’s data, it’s Terra, followed by Solana.
“Developers tend to be quite rational. If there’s something they can play with that has real utility, developers have that ability to go find that thing,” said Avichal Garg, managing partner at crypto-focused venture capital firm Electric. Capital.
In terms of market cap, Solana ranks fifth while Terra is 10th, according to figures featured on CoinMarketCap.
Developers hold steady as prices drop
After hitting an all-time high in November, bitcoin stumbled towards the end of 2021 and into the first week of the new year. Data from Electric Capital shows that historically this should not affect the number of developers entering or exiting crypto ecosystems.
“The number of monthly active developers has historically increased when prices rise, but remains stable even when prices fall,” Electric Capital’s report said. “In 2018 and 2019, monthly active developers remained stable around 11,000, even though prices fell more than 80% from the peak.”
The growth of cryptocurrencies has pushed wide exposure to decentralized finance, or DeFi for short. This was also reflected in the number of developers working on a DeFi-focused project each month.
“DeFi grew by +76%, in line with overall Web3 growth,” the report further adds. “Over 500 new developers committed code to a DeFi project every month in 2021, excluding January. At the same time, DeFi full-time monthly active contributors increased by 64%. 1,000 developers manage smart contracts with over $100 billion in assets.
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