Despite the turbulence in the crypto market, active contributors in Bitcoin, Ethereum and Solana’s top projects have grown by an average of 71.6% per year since January 2018, according to a new report.
The findings come from an August 2 report sent to UKTN by technology investment firm Telstra Ventures, which found that Solana had the largest annual increase in monthly active contributors, with a compound annual growth rate of 173% since January 1, 2018.
Contributors are developers who push updates to code on GitHub, a code repository for computer programs.
Ethereum was in second place with a compound annual growth rate of 24.9% in monthly contributors since 2018 and Bitcoin was third with a “slow and steady” annual increase of 17.1%.
Telstra also noted that it found Ethereum to be the “largest and strongest” developer community of the three blockchains. The network had nearly 2,500 monthly active contributors in April, falling to more than 2,000 in July, coinciding with a decline in the crypto price.
The higher number of active contributors may be due to the increased output needed to prepare for the impending merger in which the network transitions into a Proof-of-Work consensus.
The number of monthly active contributors on Ethereum in July was more than four times higher than Bitcoin’s 400 contributors and nearly seven times higher than Solana’s 350 contributors.
However, the report noted that the number of contributors has fallen by 9% since November last year, coinciding with a decline in the cryptocurrency’s price since its peak.
VC Investment Opportunities
The technology investment firm also found that among the top ten fastest-growing projects in Bitcoin, Ethereum and Solana, about 40% of projects have not received venture capital support, meaning investment opportunities remain plentiful.
Those projects include Ethereum-based investment protocol OlympusDAO, smart contract developer ApeWorx, maximum extracted value (MEV) researcher Flashbots, and Solana-based NFT standard MetaPlex.
Related: Investors Shift To Lower Risk Crypto Returns – Block Earner GM
Venture capital financing in crypto during 2022 has shifted its focus from decentralized finance (DeFi) to web3 applications, according to UKTN research in July. Web3 investments accounted for 42% of the $14.67 billion invested in crypto projects in the second quarter, bringing the total for the first half to $29.33 billion.
Telstra Ventures is a technology-focused venture capital firm with 84 companies in its investment portfolio and $30 billion in assets under management. It has invested in blockchain companies Blockdaemon and FTX exchange.
The data comes from 1,000 active organizations contributing to more than 30,000 open source projects on Bitcoin, Ethereum and Solana. Eligible projects for study have at least 100 stars in GitHub repositories and were active between January and April 2022.