In recent years, the crypto market has traditionally been very volatile: for example , the price of the same bitcoin managed to reach more than an all-time high and experienced several drops. However, all this did not deter the active contributors to the cryptosphere , who did a lot for its development. According to analysts at investment firm Telstra Ventures, their number has grown on average by 71.6 percent since January 2018. So let's talk about what's happening in more detail.
Remember that the contributors in this context are developers who made changes to the code for crypto projects on Github . Their number and activity can be easily tracked by the number of updates in the repositories of a particular platform. It is from their activity that the pace of development of a particular project depends.
And most often, the creators of certain projects finance the developers with the help of special funds. And in the case of Bitcoin, the support system is particularly popular, as it includes payments by different companies, both inside and outside the digital asset industry.
The role of developers for the cryptocurrency project is also very large, but the latter does not completely depend on them. As we learned in the fall of last year, even if all the Bitcoin developers somehow disappeared, it would still be possible to continue working on the development of the cryptocurrency.
What cryptocurrencies have more developers?
The most attractive project for developers was Solana : the number of active contributors to the currency from January 1, 2018 increased by 173 percent year on year. Ethereum took second place in popularity with an increase in the number of developers averaging 24.9 percent annually . Finally, the third place went to Bitcoin - here was the increase in the index at an average rate of 17.1 percent per year .
Of all the three blockchains mentioned above, it is Ethereum that has the “largest and strongest” developer community. As of April 2022, the altcoin had at least 2,500 active contributors, although by July that number had dropped to around 2000. According to Cointelegraph's sources, there is a correlation with the general downfall of the crypto market.
That is, the growth of the currency market price also affects the interest and activity of developers. This means that the value of the assets not only affects speculators who are trying to make money from price changes and are traditionally associated with the position of coins in the bulls stage.
For comparison: Bitcoin by July had about 400 active developers, and Solana had about 350. This is almost seven times less than that of Ethereum. Although the mentioned rates indicate that changes in the Solana network occur more actively. All in all, these blockchains are much smaller than ETH and BTC.
And Eth needs such a large number of developers for a reason: very soon the altcoin will switch to a new consensus-achieving algorithm called Proof of Stake, which is why miners are being replaced by validators. And this is a very important event for the project, because Ethereum has been going to PoS since the early days of its existence, but its implementation requires huge costs in the form of working hours for development due to the technical complexity of the process.
But Bitcoin could be more useful, but this was prevented by the developers.
Thanks to developer activity, there is now a huge ecosystem of decentralized crypto funding, which has turned out to be surprisingly resistant to the crisis caused by the collapse of the Terra crypto project this spring. Such a statement was recently issued by Jonathan Miller, Managing Director of the Australian Department of Crypto Kraken Exchange. According to him, the “contagion”, that is, the huge problems in the finances of many crypto companies, has practically bypassed decentralized finance.
Expert's note, in which he explains the essence of what is happening.
The “contagion” that we observed on some lending platforms was due to the traditional crypto-based financial model of loan issuance. But there was no catastrophic failure of the decentralized protocols. I think this is a universally accepted fact.
And Miller hints that mainly central sites whose brand was only associated with cryptocurrencies - for example, Celsius - suffered. In itself, this service is completely centralized, although it deals with cryptocurrencies. Its main problem, as well as that of Terra and most bankrupt startups, was poor risk management, that is, the inability to control potential risks and threats in the market.
However, the DeFi protocols in recent months have not been the best either. And during this time, there have been at least several hacks of the big DeFi protocols. And yesterday's problems with Solana and Ethereum network-based wallets were not good either.
We believe that the growth in the number of cryptocurrency developers in one way or another indicates an increase in the prospects for blockchain projects . Meanwhile, the marked decrease in the number of active developers as the market declines answers the question of why the coin industry is experiencing such a remarkable development during the bull run. It is clear that these indicators will continue to increase.
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