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The blockchain developer ecosystem is undergoing a shift: fewer developers are entering the field, and experienced developers are dominating the work, an Electric Capital research report shows.
Blockchain Developers are key to the crypto industry. They create apps and tools that engage users and create value. More users bring 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 a recent Electric Capital report. Research report.
Fewer active developers
The total number of active blockchain developers has declined sharply. In November 2022, there were more than 31,000 active developers. By November 2024, the number had fallen to 23,160, a 25% decline in two years.
Part-time developers were the most affected. Their numbers fell from 16,600 in November 2022 to 12,386 in November 2024. Newcomer developers also saw a sharp decline: in November 2022, there were 18,547 newcomers, and two years later, the number had fallen by more than half to just 8,986.
In contrast, established developers (those with two or more years of experience) are growing. During the same period, there were 6,903 existing developers, and this number rose to 11,400 in just two years, an increase of 65%.
Andrew Morville, IT director at Zodia Custody, a premier digital asset custodian backed by Standard Chartered, says the decline in new part-time blockchain developers is “likely attributable to factors such as market volatility and/or increased complexity due to market maturation.”
“This complexity requires a deeper understanding of the technology, which can be daunting for new entrants. At the same time, this trend shows the consolidation of developers already in the market who are committed to staying in it. It can also be seen in enterprise clients, where the number of clients already in the market is doubling , while new entrants remain on the sidelines with the tipping point for the next wave of adoption yet to be fully achieved.
Andrew Morville in conversation with crypto.news
Morville noted that developer activity typically lags broader market price trends, predicting that the current decline “is likely to reverse in the first half of 2025.” He also noted that while fewer new developers may “slow the flow of new ideas and diverse perspectives,” the continued presence of experienced developers can foster an environment where “newcomers and part-timers have strong mentors and solid frameworks to build upon.”
Meanwhile, Francesco Andreoli, head of the developer community at ConsenSys, attributed the decline in the number of part-time and new developers to “the increasing technical requirements of blockchain projects,” which Andreoli claims “often require specialized knowledge and sustained commitment.”
“To combat this, more education, mentorship and beginner-friendly tools are needed to attract the next wave of Web 3 talent and make the mature industry more accessible. Striking a balance between leveraging experienced developers and fostering new talent is critical.”
Francesco Andreoli in conversation with crypto.news
Andreoli also highlighted the importance of ecosystem maturity and accessibility in blockchain development, noting that while blockchain development tools have improved, they often “lack the polish and simplicity of more mature ecosystems,” making it difficult for part-time developers to contribute. Effectively. To address this issue, Andreoli noted, “We are building pre-built environments such as command line interfaces (CLIs) to make the onboarding process easier for new developers and recreate ideal web2 developer experiences, thus lowering barriers to entry.”
The head of the developer community at ConsenSys also stressed the need to combat the perception of exclusivity in blockchain development, which he said could “alienate newcomers, especially those without a deep technical background.” He called for promoting inclusivity and creating tools that “democratize access to blockchain development,” stressing that these steps are vital to fostering the innovation and diversity necessary for the industry’s long-term growth.
Founding developers get a share
Electric Capital’s “2024 Developer Report,” which analyzed 902 million code across 1.7 million repositories, shows the growing influence of experienced developers.
The report stated that established developers (those who have been working in the cryptocurrency space for more than two years) reached an all-time high, achieving 27% year-on-year growth and committing 70% of code implementations.
This means that while the total number of developers decreases, experienced developers take a larger share of the work. The report also found that 39,148 new developers discovered cryptocurrencies in 2024, although this growth among newcomers is not enough to offset the loss of part-time developers and those leaving the industry.
This shift could lead to a concentration of influence among a small group of shareholders, creating risks for the ecosystem, Andreoli warned.
“The fragmentation of ecosystems — where developers need different skills, such as Rust for some chains and Solidity for others — creates additional barriers to broader collaboration and engagement.”
Francesco Andreoli
Andreoli also expressed concerns about the potential “homogeneity of innovation,” noting that overreliance on experienced developers could lead to “solutions shaped by entrenched paradigms, which could stifle the creativity that comes from new entrants and diverse backgrounds.” This can stifle the creativity that newcomers and individuals from diverse backgrounds often bring, he noted.
To mitigate these challenges, Andreoli stressed the importance of fostering cross-chain collaboration through open source projects, community-led governance, and tools that encourage permissionless innovation, stressing that these efforts “activate developers within communities, enabling them to become an integral part.” of these efforts. From developer experience.”
Meanwhile, Morville believes that the increasing dominance of experienced developers is “a natural sign of the industry’s maturity,” adding though that “decentralized development is somewhat of a myth, given the small number of people running some of the entities at the core of the Web 3 ecosystem.” DeFi.”
“Projects like Solana provide an excellent gateway to the next wave of adoption for developers – as well as projects and enterprises – with ecosystems built around core entities, projects and protocols being key in 2025. This also means that cross-chain capability and interoperability will significantly differentiate and become paramount to For projects and entities wishing to expand.
Andrew Morville
Where developers live
Blockchain development is global. Asia now leads the share of developers. North America, which was previously the first region, fell to third place. The US remains the top country for blockchain developers, with 18.8% of the global share, although this represents a significant decline from 38% in 2015.
India emerges as a leader. In 2024, the country had the largest number of new developers, representing 11.7% of the global share. Other countries with large developer bases include the United Kingdom (4.3%), China (4%), and Canada (3.8%).
Developers are diversifying across chains
Developers are working on more blockchain ecosystems than ever before. In 2015, less than 10% of developers worked across multiple threads. However, by 2024, one in three developers will now work across multiple threads.
Ethereum (Ethereum) remains the largest ecosystem for total developer activity, the data shows. But Solana (Sol) is attracting more new developers as it grew its developer base by 83% in 2024, making it the best ecosystem for newcomers. Meanwhile, Bitcoin (Bitcoin) Development remains stable, with 42% of developers working to scale solutions.
Expanding use cases
Different blockchains attract developers based on specific use cases:
- Ethereum: It drives overall developer activity and remains a hub for decentralized finance.
- Solana: It dominates decentralized exchange usage and is a leader (64%) in low-fee use cases like minting NFT/meme coins.
- Coinbase a base: It is responsible for 42% of “new code written in the Ethereum ecosystem” and owns 97% of NFT mining volume.
Stablecoins and reallocation are also growing sectors. Stablecoins now have over $195 billion in circulating supply and over $80 billion in daily transaction volume. The report showed that the repossession sector, led by projects like EigenLayer, increased the number of full-time developers by 130% in 2024.
What does this mean for space
While the shift toward experienced developers shows that 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 suggests some are leaving due to market uncertainty or lack of opportunities, especially after the big hit. Dealing with it through FTX breakdown. The effects of the bankruptcy continue to impact the industry today.
The Electric Capital report describes developers as a “leading indicator of value creation,” emphasizing that low developer engagement could hinder blockchain innovation over time.
