Blockchain developer market becomes more centralized post-FTX, data shows

The blockchain developer ecosystem is shifting: fewer developers are entering the space, and experienced developers are dominating the work, Electric Capital’s research report shows.

Blockchain developers are key to the crypto industry. They build apps and tools that attract users and create value. More users bring more developers, therefore creating a cycle of growth. Yet, despite crypto’s focus on decentralization, the developer market appears to become more centralized, with experienced developers taking the lead, per Electric Capital’s recent research report.

Fewer active developers

The total number of active blockchain developers has dropped sharply. In November 2022, there were over 31,000 active developers. By November 2024, the number had dropped to 23,160, a 25% decline in two years.

Part-time developers were hit the hardest. Their numbers dropped 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 when two years later, the number dropped by over 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 established developers, and this number grew to 11,400 in just two years, a 65% increase.

Andrew Morfill, CIO of Zodia Custody, an institution-first digital asset custodian backed by Standard Chartered, says the decline in part-time and new blockchain developers “can likely be attributed to factors such as market volatility and/or increasing complexity due to market maturation.”

“This complexity requires a deeper understanding of the technology, which can be daunting to newcomers. At the same time, this trend shows a consolidation of developers already in the market committing and staying. It is also being seen in institutional customers, where those already in the market are doubling down, while new entrants are still at the fringes with the tipping point for the next wave of adoption yet to be fully realized.”

Andrew Morfill in the conversation with crypto.news

Morfill suggested that developer activity typically lags behind broader market price trends, predicting that the current decline “will likely reverse in the first half of 2025.” He also noted that while fewer new developers might “slow the influx of fresh ideas and diverse perspectives,” the continued presence of experienced developers could foster an environment where “newcomers and part-timers have strong mentors and robust frameworks to build upon.”

Meanwhile, Francesco Andreolí, head of the developer community at Consensys, attributed the decline in part-time and new developers to the “increasingly technical demands of blockchain projects,” which Andreolí claims “often require specialized knowledge and sustained commitment.”

“To counter this, more education, mentorship, 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 leveraging experienced developers and fostering fresh talent is crucial.”

Francesco Andreolí in the conversation with crypto.news

Andreolí also highlighted the importance of ecosystem maturity and accessibility in blockchain development, noting that while the tooling for blockchain development is improving, it often “lacks the polish and simplicity of more mature ecosystems,” which makes it challenging for part-time developers to contribute effectively. To address this, Andreolí pointed out that “we are building pre-built environments like CLIs to make onboarding easier for new developers and recreate optimal web2 developer experiences, thereby lowering barriers to entry.”

The head of developer community at Consensys also emphasized the need to combat the perception of exclusivity in blockchain development, which he said can “alienate newcomers, particularly those without a deep technical background.” He advocated for fostering inclusivity and creating tools that “democratize access to blockchain development,” stressing that these steps are vital for nurturing innovation and diversity essential to the industry’s long-term growth.

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 2+ years) are at all-time highs, growing 27% YoY and committing 70% of code commits, the report reads.

This means that while the overall developer count is falling, experienced developers are taking a bigger share of the work. The report also found that 39,148 new developers explored crypto in 2024, though this growth among newcomers is not enough to offset the loss of part-time developers and those leaving the industry.

Andreolí cautioned that the shift could centralize influence among a small group of contributors, creating risks for the ecosystem.

“The fragmentation of ecosystems — with developers needing different skills, such as Rust for some chains and Solidity for others — creates additional barriers to collaboration and broader participation.”

Francesco Andreolí

Andreolí also expressed concerns about the potential “homogenization of innovation,” noting that an over-reliance on experienced developers might lead to “solutions shaped by established paradigms, potentially stifling the creativity that comes from new entrants and diverse backgrounds.” This, he suggested, could stifle the creativity often brought by newcomers and individuals from diverse backgrounds.

To mitigate these challenges, Andreolí underscored the importance of fostering cross-chain collaboration through open-source projects, community-driven governance, and tools that promote permissionless innovation, emphasizing that such efforts “activate developers within communities, enabling them to become an integral part of the developer experience.”

At the same time, Morfill believes that the growing dominance of experienced developers is a “natural sign of the industry’s maturation,” 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 web3 and DeFi ecosystem.”

“Projects such as Solana provide an excellent gateway for the next wave of adoption for developers — as well as projects and institutions — with ecosystems built around core entities, projects and protocols being key in 2025. This also means that cross-chain capability and interoperability will feature heavily and become paramount for projects and entities wanting to scale.”

Andrew Morfill

Where developers live

Blockchain development is global. Asia now leads in developer share. North America, once the top region, has fallen to third place. The U.S. remains the top country for blockchain developers, with 18.8% of the global share, though it is a big drop from 38% in 2015.

India is emerging as a leader. In 2024, the country onboarded the most new developers, accounting for 11.7% of the global share. Other countries with significant developer bases include the U.K. (4.3%), China (4%), and Canada (3.8%).

Developers diversify across chains

Developers are working on more blockchain ecosystems than ever before. In 2015, fewer than 10% of developers worked on multiple chains. However, by 2024, one in three developers now work across multiple chains.

Ethereum (ETH) remains the largest ecosystem for total developer activity, the data shows. However, Solana (SOL) is attracting more new developers as it grew its developer base by 83% in 2024, making it the top ecosystem for newcomers. Meanwhile, Bitcoin (BTC) development remains stable, with 42% of developers working on scaling solutions.

Use cases expand

Different blockchains attract developers based on specific use cases:

• Ethereum: Leads in total developer activity and remains a hub for decentralized finance.
• Solana: Dominates decentralized exchange usage and is a leader (64%) in low-fee use cases like NFT/meme coins minting.
• Coinbase’s Base: Responsible for 42% of the “new code being written in the Ethereum ecosystem” and owns 97% of NFT minting volume.

Stablecoins and re-staking are also growing sectors. Stablecoins now have over $195 billion in circulating supply and more than $80 billion in daily transaction volume. The re-staking sector, led by projects like EigenLayer, grew its full-time developer count by 130% in 2024, the report shows.

What this means for space

While the shift toward experienced developers shows that the industry is maturing, it also raises concerns about centralization. As newcomers 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 fewer opportunities, especially following the significant blow dealt by the FTX collapse. The bankruptcy’s ripple effects continue to impact the industry even today.

Electric Capital’s report describes developers as a “leading indicator of value creation,” emphasizing that a decline in developer participation could hamper blockchain innovation over time.