The blockchain developer ecosystem is changing: fewer developers are entering the space and experienced developers are dominating the work, as shown in Electric Capital’s research report.
Blockchain developers are key to the crypto industry. They create apps and tools that attract users and create value. More users bring more developers, creating a cycle of growth. Yet despite crypto’s focus on decentralization, the developer market appears to be becoming more centralized, with experienced developers leading the way, according to Electric Capital’s recent research report.
Fewer active developers
The total number of active blockchain developers has declined sharply. As of November 2022, there are over 31,000 active developers. By November 2024, this number had fallen to 23,160, a drop of 25% in two years.
Part-time developers have been hit the hardest. Their number fell from 16,600 in November 2022 to 12,386 in November 2024. New arrivals also saw a sharp decline: in November 2022, there were 18,547 new arrivals, while two years later this number fell. by more than half to reach just 8,986.
On the other hand, the number of established developers (those with at least two years of experience) is growing. During the same period, there were 6,903 established developers, and this number increased to 11,400 in just two years, an increase of 65%.
Andrew Morfill, CIO of Zodia Custody, a premier digital asset custodian backed by Standard Chartered, says the decline in the number of part-time and new blockchain developers “can likely be attributed to factors such as the volatility of market and/or increasing complexity due to the market. maturation.”
“This complexity requires a deeper understanding of the technology, which can be intimidating for newcomers. At the same time, this trend shows a consolidation of developers already in the market who are signing up and staying. This is also seen among institutional clients, where those already in the market are doubling, while new entrants are still on the fringes, with the tipping point for the next wave of adoption not yet fully reached.
Andrew Morfill in conversation with crypto.news
Morfill suggested that developer activity generally lags broader market pricing trends, predicting that the current decline will “likely reverse during the first half of 2025.” He also noted that while fewer new developers could “slow the influx of new ideas and diverse perspectives,” the continued presence of experienced developers could foster an environment in which “newcomers and part-time workers have access to strong mentors and strong executives to rely on.”
Meanwhile, Francesco Andreolí, developer community manager at Consensys, attributed the decline in the number of part-time and new developers to the “increasingly technical demands of blockchain projects,” which, according to Andreolí, “ often require specialist knowledge and sustained commitment.”
“To counter this, more education, mentoring and beginner-friendly tools are needed to attract the next wave of Web3 talent and make the maturing industry more accessible. Striking a balance between using experienced developers and promoting new talent is crucial.
Francesco Andreolí in conversation with crypto.news
Andreolí also highlighted the importance of ecosystem maturity and accessibility in blockchain development, noting that while blockchain development tools are improving, they “often lack the refinement and simplicity of more mature ecosystems,” making it difficult for part-time developers to contribute. effectively. To solve this problem, Andreolí highlighted that “we build pre-built environments such as CLIs to facilitate the onboarding of new developers and recreate optimal experiences for Web2 developers, reducing barriers to entry.”
The head of the developer community at Consensys also highlighted the need to combat the perception of exclusivity in blockchain development, which he said can “alienate newcomers, especially those without in-depth technical knowledge. He advocated for fostering inclusiveness and creating tools that “democratize access to blockchain development,” emphasizing that these steps are essential to nurturing the innovation and diversity essential to the long-term growth of the industry .
Established developers gain share
Electric Capital’s 2024 Developer Report, 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 reaching all-time highs, growing 27% year-over-year and committing 70% of code commits, the report says.
This means that even though the overall number of developers is decreasing, experienced developers are taking on more of the work. The report also reveals that 39,148 new developers explored crypto 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 this change could centralize influence among a small group of contributors, creating risks for the ecosystem.
“The fragmentation of ecosystems – with developers needing different skill sets, such as Rust for some chains and Solidity for others – creates additional barriers to collaboration and broader participation.”
Francesco Andreoli
Andreolí also expressed concerns about the potential “homogenization of innovation”, noting that an over-reliance on experienced developers could lead to “solutions shaped by established paradigms, potentially stifling creativity from new entrants and from diverse backgrounds. He said this could stifle the creativity often brought by newcomers and individuals from diverse backgrounds.
To mitigate these challenges, Andreolí highlighted the importance of fostering cross-chain collaboration through open source projects, community governance, and tools that foster permissionless innovation, emphasizing that such efforts “enable developers within communities, allowing them to become an integral part.” of the developer’s experience.
At the same time, Morfill believes that the growing dominance of experienced developers is a “natural sign of the maturation of the industry”, adding however that “decentralized development is somewhat of a myth, given the small number of people who lead some of the entities globally.” heart of the web3 and DeFi ecosystem.
“Projects like Solana provide a great gateway to the next wave of adoption for developers – as well as projects and institutions – with ecosystems built around core entities, projects and protocols that will be essential in 2025 This also means that cross-chain capacity and interoperability will be very present and will become essential for projects and entities wishing to develop.
Andrew Morfill
Where the developers live
The development of blockchain is global. Asia now leads in terms of developer share. 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 this is a sharp decline from 38% in 2015.
India is emerging as a leader. In 2024, the country welcomed the most new developers, accounting for 11.7% of the global share. Other countries with a large developer base include the United Kingdom (4.3%), China (4%), and Canada (3.8%).
Developers are diversifying across channels
Developers are working on more blockchain ecosystems than ever before. In 2015, less than 10% of developers worked across channels. However, by 2024, one in three developers will now work across channels.
Ethereum (ETH) remains the largest ecosystem for total developer activity, data shows. However, Solana (SOL) is attracting more new developers as its developer base grew by 83% in 2024, making it the best ecosystem for newcomers. Meanwhile, Bitcoin (BTC) development remains stable, with 42% of developers working on scaling solutions.
Use cases are growing
Different blockchains attract developers based on specific use cases:
- Ethereum: Leads total developer activity and remains a hub of decentralized finance.
- Solana: Dominates the use of decentralized exchanges and is a leader (64%) in low-cost use cases like minting NFT/meme coins.
- 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 re-staking are also growing sectors. Stablecoins now have over $195 billion in circulation and over $80 billion in daily trading volume. The re-staking industry, led by projects like EigenLayer, increased its number of full-time developers by 130% in 2024, according to the report.
What this means for space
While the move toward experienced developers shows the industry is maturing, it also raises concerns about centralization. As new entrants decline 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 diminishing opportunities, especially following the blow from the collapse of FTX. The ripple effects of bankruptcy continue to impact the industry even today.
Electric Capital’s report describes developers as a “leading indicator of value creation,” highlighting that a decline in developer participation could hinder blockchain innovation over time.
