The repercussions faced by blockchain developers when their ecosystem collapses can be better understood through the example of the Terra project. According to a report by Electric Capital over half of the 323 open source developers who had actively contributed to projects on the Terra platform prior to the downfall of its algorithmic stablecoin in early 2022 had completely withdrawn from crypto development by December . These individuals, commonly referred to as “devs. ” play a vital role in rejuvenating digital networks .
Terra’s Unforeseen Plunge: Unraveling the Unexpected Crash of the Formerly Prominent Stablecoin in 2022
In May the Terra network experienced a significant disaster when UST and LUNA token failures resulted in a crash of $40 billion in assets. As a consequence of this tragic event 180 blockchain developers made the difficult decision to discontinue their work on crypto projects entirely. However. It is worth noting that amidst this challenging situation. 42 courageous programmers chose to relocate to other Cosmos based networks. Additionally. According to Electric Capitals’ findings.
35 individuals dedicated their efforts towards the rebuilding of Luna 2.0. Furthermore. Five individuals transitioned to Solana while 11 worked tirelessly on Osmosis- a decentralized exchange that operates on Cosmos technology. Undoubtedly the collapse of the Terra project served as a major setback for DeFi traders who had heavily relied on Ethereum in the past. It is important to highlight that Terra swiftly emerged as their preferred network within the Cosmos ecosystem.
Resilience in Development: Tracking the Growing Number of Developers Despite Setbacks and Challenges
In 2022 the crypto ecosystem saw a notable transformation as a number of projects experienced a loss of developers. One example is Project Terra, which faced a significant decline in its token price after $100 million worth of assets were stolen through the Harmony bridge connecting Horizon and Ethereum. Another prominent blockchain. Fantom has also faced some setbacks due to security concerns.
However. Its’ worth noting that during 2022. The crypto developer community saw a remarkable growth of 5%. In fact we had 61k developers who contributed to crypto projects for the first time ever. We had an impressive count of 23k monthly active developers—an all time high that remains unmatched. Last year provided indications that the Bitcoin and Ethereum duopoly in terms of core developers started to decline. Data from a report revealed that as many as 72% of monthly active developers were working on projects other than these major blockchains. Exciting new initiatives like Solana, Near. And Polygon have witnessed tremendous growth 40% to be exact with each project receiving over 500 dedicated developers every month since 2021 !
