A new annual report from early-stage venture firm Electric Capital shows massive developer activity growth on four blockchain projects, including two Ethereum (ETH) rivals.
According to the firm, active developers on the Polygon (MATIC) and Cosmos (ATOM) blockchains along with ETH rivals Solana (SOL) and Polkadot (DOT) shot up in 2022 by more than 400% from five years ago.
Says Maria Shen, an investor at Electric Capital,
“While prices are at 2018 levels, developer ecosystems are multiples bigger.”
These four blockchain projects each saw less than 200 monthly developers in 2018, but that increased to more than 1,000 in 2012.
According to the report, Polygon has just over 1,000 monthly active developers, Cosmos just under 2,000, Polkadot about 2,000 and Solana about 2,250.
In the crypto space as a whole, developer activity started off at 1,000 monthly active developers writing code in the first seven years of the nascent technology. Now, as of December 2022, there were 23,343 monthly active developers, a 5% growth compared to December 2021, the report says.
Development activity on a blockchain is one indicator that a crypto project will experience a price increase.
Says the report,
“Developers are a leading indicator of value creation. Developers build apps that deliver value to users. Killer apps attract customers, and those customers bring more developers.”
Shen says the firm’s development activity tally is likely an undercount since it solely tracks open-source code.
“We focus on open source code, so we undercount total developers in crypto and do not count designers, community mods, PMs [project managers], etc. We focus on unique code and do not count forked code.”Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
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