Report: Crypto sector sees 48% drop in new programmers

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The cryptocurrency sector has experienced a 48 percent drop in new developers entering the field over the past year, according to Electric Capital’s Developer Report.

As of June 1, the crypto field has an estimated 21,300 monthly active open-source developers, a 25 percent increase compared to a similar period in June of 2021, around five months before Bitcoin reached record highs above $69,000. However, the number represents a 22 percent decline since June 2022, with around 7,700 new developers exiting the industry.

The exit of these newcomers, who had less than a year of experience in the industry, had a minimal impact since their work amounted to less than 20 percent of all code commits in the past 12 months.

The number of emerging developers with two years of experience in the industry has grown to 1,650, while the number of established developers with over two years of experience has increased by 150.

A recent analysis indicates that long-term developers who have worked in the industry for over a year contribute more codes and have more active days than the ones who have left.

Analysts suggest that although the retention of new developers in 2023 is lower compared to the previous years, it is still considered normal when seen in a bigger context.

The report also observed that newcomers join the cryptocurrency field during market highs but usually leave during bear markets. For instance, six months after the crypto market peak in January 2018, newcomer developers reached 70 percent dominance. Veteran developers are seen to be more persistent, with around 60 percent staying engaged even after market peaks.

Fewer coders exploring work in the crypto industry reportedly led to a decrease in newcomer developers. This decline has been further amplified by an ongoing bear market, negatively impacting the broader crypto markets.

“If we look at cohort retention analysis starting from 2015, we see that developers who join during bear markets leave faster,” Electric Capital said in the report. “New developers left faster in 2023 than in 2022 or 2021, which is typical for the bear market.”

During the second half of 2022, the crypto industry saw a series of layoffs as companies opted to downsize in response to difficult market conditions.

180,000 workers employed in crypto industry

Nevertheless, a new report shows that the industry currently employs around 180,000 individuals as of July of this year. The figure showcases a rise compared to before the crypto frenzy that began in 2020.

Around one-third of the crypto workforce is employed at exchanges or brokerages, highlighting these entities’ vital role in the industry.

Another 26 percent of individuals work for companies that provide various financial services related to cryptocurrencies. Interestingly, only six percent of the workforce is involved in NFTs.

Meanwhile, 21 percent of crypto professionals apply their skills in blockchain protocols, analytics and mining operations. The remaining 13 percent of employees work cryptocurrency-related jobs that don’t fall into the previously mentioned categories.

Around 55 percent of the Western world resides in North America and Europe. Within this percentage, the United States covers 29 percent of the crypto workforce.

In Asia, India stands out as the leading employer in the crypto industry, hosting 20 percent of the regional workforce with a focus on developer-related roles. Despite China’s ban on crypto, the country still stands as the second-largest employer in Asia, accounting for 15 percent of the region’s workforce.