Ethereum Remains the Largest and Strongest Developer Community: Telstra Report
- The report shows that the Ethereum contributor’s community has had a 24.9 percent compound growth rate yearly since January 1, 2018.
Telstra Ventures has released a report regarding the health of the top three blockchains (Ethereum, Solana, and Bitcoin). The report was a compilation study on the extent to which developers are participating in the ecosystem. The venture, the investment subsidiary of Australia-based telecommunication giant, Telstra, noted that Ethereum’s developer community is the largest and strongest of the three blockchains.
The report also stated that several unfunded opportunities are still available in these ecosystems. Ventures and corporate investors only have investments in about 50 percent of the top 10 projects on each of these ecosystems.
Ethereum on the Front Foot
The number of active contributors is an important indicator that reflects the strength of any blockchain network. Such networks will attract more regular contributors as their popularity, and use cases rise. Telstra ventures performed a comparative analysis of the compound annual growth rate of unique active contributors of Bitcoin, Solana, and Ethereum blockchains.
The investment firm discovered there’d been a 24.9 percent growth in Ethereum’s developer community in the last four years. Since Ethereum’s price reached its all-time high in November 2021, it has suffered a 9 percent drop in its number of monthly active contributors. The figure indicates that developers’ overall confidence in the network hasn’t declined despite the current crypto winter.
In addition, the forthcoming Merge has contributed to this overall interest and confidence in the network. There has been an average of 2,500 monthly active developers on the network between January and June 2021. By comparison, Solana couldn’t match Ethereum for stability despite reaching an astonishing 173 percent increase in annual compound growth within the same period as Ethereum.
Solana had the biggest decline in monthly active contributors because it hasn’t been around long enough compared to Bitcoin and Ethereum, according to Jonathan Serfaty, the head of Telstra’s data science group. Serfarty explained that Bitcoin and Ethereum had experienced more downturns than Solana. Also, some core groups of developers and contributors have remained on Bitcoin and Ethereum throughout previous downturns and remain there to date.
Since SOL’s price hit new peak levels in November 2021, there has been a 21 percent drop in monthly active contributors on the Solana network. The number was slightly more than 250 last month. However, Bitcoin’s active monthly contributors increased by 8 percent within the same period. The report states that the number of new developers on the Bitcoin network has remained relatively the same since 2014.
Many Untapped Opportunities
Telstra Ventures reports that institutional investors haven’t tapped into all the opportunities on these top networks. However, it notes that many crypto VCs have been discouraged from investing in the crypto space due to the current crypto bear market. This was evident in the 34 percent decline in Coinbase Ventures’ deals last quarter. The venture also noted that VCs and corporations back 70 percent of the fastest growing Web3 projects on the Bitcoin, Solana, and Ethereum ecosystems.
It made this deduction after analyzing over 30,000 open source projects on these three networks. Furthermore, venture and corporate investors are backing 5 of the top 10 most active projects in these ecosystems. Thus, indicating that institutional investors are yet to invest in nearly 50 percent of these high-potential projects.