Blockchain developer activity is truly a measure of crypto success
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The number of weekly active blockchain developers has decreased by more than 26% in the last three months. However, many tried to downplay the news. Perhaps most notably, many argued that the loss of “tourist builders” and “tourist investors” was no loss at all, as it would allow the industry to focus better on real projects.
However, the reality is that any smart contract platform relies on significant blockchain developer activity. Those without them wither away and die. It is disingenuous to say that the exodus of developers or investors is really a good thing. In fact, it is a huge responsibility. This industry depends on innovation, and the more innovators, the greater the competition.
What some consider tourism builders and tourism investors are actually people who are often blockchain agnostic people who are not necessarily blockchain enthusiasts, but people who understand the industry and see the value in it. These are people who can bring their talent and treasure to a variety of different industries. These are people the industry should want involved.
Does that mean those new to blockchain technology should be burdened with building exchanges or the security apparatus? No. There must certainly be a movement towards greater security. But getting their ideas, which they then bring to life, is a big thing. The free market determines which ideas have value. That is the great advantage of decentralization the people decide where there is value.
The best way to weather this storm is to acknowledge the truth of the downturn. As institutional investors became more and more immersed in Bitcoin and other digital assets, cryptocurrencies became more and more closely correlated with traditional assets. Period.
Have other things worsened the crypto winter? Of course. Most notable, perhaps, are the nine-figure hacks that continue to plague the industry. It has clearly become a major flaw in the infrastructure of digital assets.
The crypto winter is not going to end up calling out those investors who are protecting themselves against the volatility that is crypto. It can only end up favoring the kind of regulatory environment that will reduce investor fears in the long term.
While MiCA was promoted by the EU, it has quite a long runway to full implementation. Now that SEC Chairman Gary Gensler has given his stamp of approval, Congress is likely to approve the CFTC’s oversight of Bitcoin and Ethereum, and we may begin to see some movement in the US after the November election.
It may then allow Congress to find momentum to advance other necessary regulatory provisions. Great Britain has a new Prime Minister, and due to the death of the Queen, will have an even longer transition period.
However, governments around the world are following where the US and UK lead from here. As the regulatory environment changes, you will begin to see developer activity return to normal levels. It will bring prosperity back to the industry.
Richard Gardner is CEO of Modulus. A globally recognized subject matter expert for more than two decades, he offers complex insights and analysis on cryptocurrency, cybersecurity, financial technology, surveillance technology, blockchain technologies and general management best practices.
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