A recent developer report by Electric Capital highlights that blockchain networks utilizing the Ethereum Virtual Machine (EVM) are highly favored among developers. The report, released on January 17, reveals that a significant 87% of multi-chain developers are engaged with at least one EVM-compatible chain. This popularity is due to the ability of these networks, such as Starknet, Tron, Binance’s BNB Chain, Arbitrum, Optimism, and Polygon, to run the Ethereum Virtual Machine and execute Ethereum-based smart contracts.
The study delves into the development activity within the cryptocurrency sector for the year, particularly in the fourth quarter of 2023. It uncovers that EVM-compatible chains share a substantial portion of developers with other EVM networks. Starket, Polygon, Optimism, and Arbitrum show the highest crossover of developers. BNB Chain and Polygon, in particular, have experienced significant "cross-pollination" with Ethereum's multi-chain developers, with 37% and 35% respectively deploying code on these networks.
Maria Shen, a general partner at Electric Capital, offered insights into the report’s findings. Despite a downturn in the overall number of developers in the crypto ecosystem, which dropped 24% to 22,411 from 29,611 in the last quarter, there was a notable increase in the number of established developers. This group, defined as those active in crypto for over a year, saw an annual growth of 16% in 2023. Shen highlighted that although fluctuations in market prices affect developer numbers, a core group remains consistently engaged, and each market cycle leaves behind a larger base of committed developers.
Ethereum, in particular, is leading in attracting new talent. In 2023, it saw over 16,700 new developers, a figure that far surpasses the 6,200 new developers on Polygon and the 4,705 on Solana. Shen emphasized that despite the prolonged bear market, the influx of new developers in 2023 indicates the underlying potential and resilience of the crypto ecosystem. She remarked on the success of the ecosystem in drawing a diverse pool of developers, with 17 different ecosystems attracting over 1,000 developers each. However, Bitcoin has seen a 19% decline in developer activity year-over-year, with just over 1,000 monthly active developers currently.
The report also sheds light on the evolving landscape of cryptocurrency development. It notes a substantial increase in multi-chain development activity, which has grown by 1,000% since 2015. By the end of December 2023, about 30% of all active developers were working on at least two different blockchains, a figure that has surged by approximately 125% since 2018. This growth signifies a trend towards versatility and adaptability among developers in the crypto space.
