Token Terminal, a financial data platform, reports a 57% decline in the number of daily active developers working on the top blockchains and decentralized applications (dapps) this year.
The number of daily active developers working on the major blockchains and decentralized applications (dapps) has plummeted by roughly 57% this year, according to financial data portal Token Terminal. Based on the platform’s data for January, there were over 3,700 daily developers who were active, which is a considerable increase from the roughly 1,600 on December 14th.
Furthermore, according to the data from December 2022, Ethereum (ETH +2.21%) has 183 active developers each day, which is the most among all blockchain protocols and dapps. Cosmos (ATOM +1.41%) and Cardano (ADA +0.18%) came in second and third, respectively, with 145 and 142 active developers. A total of 18 active engineers are presently working on Bitcoin (BTC +0.44%), the most valuable cryptocurrency by market capitalization.
Token Terminal also pointed out that Solana (SOL +0.24%) experienced the worst decline, going from almost 2,500 developers in January to only 74 developers as of this writing. However, the protocol insisted in a tweet sent out last month that the platform is being used by thousands of developers.
Following Token Terminal’s methodology, the “number of distinct GitHub users that made 1+ commits to the project’s GitHub repositories during the past 30 days” is used to determine who is an “active developer.”
2022 has been the worst year for crypto markets
This year saw a number of crypto disasters, including the recent fall of institutional lending platform Celsius and the demise of crypto exchange giant FTX. The crypto industry has been hit hard by these events, which has also led to the current drop in the number of active developers.
Sam Bankman-Fried, the exchange’s founder and former CEO, was recently detained by Bahamian authorities a month after the exchange’s demise. He is now being prosecuted for wire fraud, conspiring to launder money, and violating campaign finance laws. He is also accused of orchestrating a “massive, years-long fraud” in which he diverted billions of dollars in FTX customer funds for “his own personal benefit.”
On the other hand, following the collapse of Terra and Luna as well as the ongoing decline of Bitcoin, the centralized lending platform Celsius made the decision last June to halt all withdrawals from its platform. Their cryptocurrency, Celsius (CEL +3.36%), lost 70% of its value as a result of this move.
Three Arrows Capital (3AC), a cryptocurrency hedge fund, also incurred losses as a result of the Terra crash, since it faced extraordinary losses due to the recent decrease in cryptocurrency market prices. Do Kwon, the founder and chief executive officer of Terra, is currently facing legal penalties and has been issued a notice by the Interpol.
Rickie Sebastian Sanchez is an article writer specializing in cryptocurrency news. Since late 2017, he has been actively investing in cryptocurrencies. He is enthusiastic about everything that has to do with crypto and he hopes that the readers of his articles in the years to come will gain a massive understanding of blockchain technology.