Home Markets Number of developers on Ethereum remains robust despite market decline: Telstra

Number of developers on Ethereum remains robust despite market decline: Telstra

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Number of developers on Ethereum remains robust despite market decline: Telstra

Telstra Ventures – the investment arm of Australian telecommunications giant Telstra – has released a report on the health of the three major blockchains, including Bitcoin, Ethereum and Solana, looking at the extent of derivative developer participation in each ecosystem. . With the highest number of monthly active contributors, the Ventures noted, Ethereum is the “strongest and largest community” of the three.

The report also revealed that unfunded opportunities are still widely available in the ecosystems mentioned above, with venture capitalists and companies only betting about half of the top 10 projects from each.

Ethereum in reign

The number of active contributors is a key metric reflecting the strength of blockchain networks. With increasing popularity and use cases, they also tend to attract more regular contributors. Telstra Ventures analyzed the compound annual growth rate of unique active contributors on three major blockchains, indicating that the Ethereum community has grown by 24.9% over the past four years since January 1, 2018.

Despite the steep price decline since last November, its number of monthly contributors was down only 9% in July this year, indicating that the ongoing crypto winter has not dampened overall developer confidence in the network.

Moreover, the next Merge about to finalize the transition from PoW to PoS has stabilized the general interest, as the number of monthly active developers has remained above 2,500 each month since the first half of 2021.

Compared to Ethereum, Solana has seen explosive growth over the same period, with a compound annual growth rate reaching an incredible 173%. However, it fails to keep Ethereum stable. Since its native token SOL reached an all-time high of $204 last November, the number of active contributors has fallen by 21%, standing at just over 250 in July.

Unlike the two Layer 1 networks, the Bitcoin ecosystem has seen an 8% growth in monthly active contributors since BTC peaked in November. Overall, it has achieved steady growth in terms of attracting new developers over the past eight years, according to the report.

Opportunities still available

Even if the bear market takes crypto-VC enthusiasm away – noticeably show in Second Quarter Coinbase Ventures Deal Activity Down 34% – Telstra Ventures believes that many opportunities within top ecosystems still remain open to institutional investors.

After reviewing over 30,000 Bitcoin, Ethereum, and Solana open-source projects in the Web3 ecosystem, the company noted that 70% of the fastest-growing projects are VC-backed or enterprise-backed.

Moreover, only 4-5 of the 10 most active projects in each ecosystem are backed by venture capitalists and companies, suggesting that around half of high-potential projects still remain untouched by institutional investors.

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