In the past 3 months, the cryptocurrency industry has witnessed a great slump. Even after such a long time, the situation does not seem to be getting fixed for the cryptocurrency industry.
Developers are Losing Confidence
It is a common practice for people to interact with technologies and sectors that manage to gather great traction. If the technology or an industry loses its attraction, then the situation turns ugly.
If the industry witnesses a dip in demand and attraction, then the developers/creators interacting with the space start losing their interest as well.
For the developers, creating new protocols and platforms becomes a waste of resources if their demand is too low. If there is no one to appreciate the creations, then there is no point in creating new protocols or platforms.
As the cryptocurrency industry is constantly losing its traction, developers are finding it less beneficial to create any more protocols.
Huge Reduction in Active Developers
The data collected by major on-chain data collectors have confirmed that a great reduction has been recorded for the weekly active developers. As the data suggests, the reduction has been witnessed in the past three months.
The statistics show that in the past three months, over 26% reduction has been recorded in the weekly active developers. The reduction recorded is due to the constant slump that has been taking place within the cryptocurrency industry since the beginning of 2022.
When the crypto slump began in late 2021, the majority of the people interacting with the crypto-verse had hoped to see the industry resurge.
However, as the situation has failed to recover, not only the investors but the developers have started to leave the cryptocurrency industry.
The prolonged market slump has been pushing investors and developers out of the cryptocurrency market. In the past three months, the developers have started exiting the crypto market on a much faster level.
Data from Artemis
Artemis, a major blockchain data aggregator has shared individual developer drop-off data per blockchain ecosystem.
At present, Cosmos, Solana, Polkadot, and Ethereum blockchain ecosystems are the largest providers of smart contracts.
The drop rate for the developers on Cosmos has dropped by 48.9% while the Solana blockchain has recorded a 48.4% drop rate.
The Polkadot blockchain has witnessed a 43.6% drop rate while the Ethereum blockchain has recorded a 30.5% drop rate.
Blockchains Recording Growth in Developers
The Internet Computer (IC) network and the Interplanetary File System (IPFS) have recorded significant rises in the adoption rate of developers. The IC has recorded a 21.7% rise in developers while the IPFS has recorded a 206.6% rise in developers.
As the number of developers is dropping, the investors may also start leaving the crypto-verse on a larger scale. This would create an even larger slump in the cryptocurrency industry.