US Loses Blockchain Developers to Other Jurisdictions as Innovation Continues to Crash: Report
Data from Electric Capital reveals that the US is bleeding from the loss of blockchain developers while other regions record a peak in the past five years.
The report revealed that blockchain developers in the US have declined by 2% annually since 2017, raising concerns among industry stakeholders. Over the past 12 months, the number of US-based blockchain developers has fallen by a staggering 6%, with Archie Finance CEO Paul Stavropoulos suggesting that the latest numbers paint a bleak picture for the local ecosystem.
“The question is whether it matters and why,” Stavropoulos said. “First and foremost is the overall growth of the ecosystem. It’s been constant, which is fantastic, but it’s not good that the US is losing market share.”
As the US continues to experience a brain drain, Electric Capital’s research noted that the number of blockchain developers worldwide is on the rise despite the fall in digital asset prices. The report confirmed that the number of monthly active developers in December 2022 was 23,343, with BTC and Ethereum (ETH) developers at 946 and 5,819 respectively.
Developers are flocking to ecosystems like Solana, Near and Polygon, according to the report. Electric Capital notes that over 900 developers contribute to the NFT (non-fungible token) space each month, while decentralized finance (DeFi) registers nearly 4,000 developers.
Stavropoulos notes that adding nearly 22,000 developers to the industry should be considered a victory despite the mass migration of talent from the US regions that have recorded the highest growth trajectory for blockchain developers over the past five years, including Asia, Latin America and Africa .
Why is America bleeding Web3 talent?
Fingers have been pointed at the rigid attitude of US regulators towards digital currencies characterized by increased enforcement actions. The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have all taken action against firms in the industry for alleged violations of securities and commodities laws.
Others have argued that developers have not left the US, but that the peculiarities of remote work have drawn them to work for European DLT firms. Several global Web3 companies have their engineering teams based in the US, which still puts them ahead of the pack in the big picture.
See: Blockchain Venture Investments: Driving Utility for a Better World
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