Despite the turmoil in the cryptocurrency market, active contributors to major projects such as Bitcoin, Ethereum, and Solana have increased by an average of 71.6% per year since January 2018.according to a new report.
The findings stem from a Tuesday report sent to Cointelegraph by tech investment firm Telstra Ventures, which found that Solana had the most significant annual increase in monthly active contributors, growing at a 173% compound annual growth rate since January 1, 2018.
Contributors are developers who promote code updates on GitHuba code repository for computer programs.
Ethereum was second with a compound annual growth of 24.9% monthly contributors from 2018, and Bitcoin was third, with a “slow and steady” annual increase of 17.1%..
Telstra also noted that it found Ethereum to have the “largest and strongest” developer community of the three blockchains.. The network had nearly 2,500 monthly active contributors in April, which dropped to more than 2,000 contributors in July, coinciding with the cryptocurrency’s price decline.
The higher number of active contributors could be due to the higher amount of production needed to prepare the fusionsoon to be deployed, in which the network will switch to Proof-of-Stake (PoS) consensus.
The number of monthly active contributors to Ethereum in July was more than four times higher than Bitcoin’s 400 contributors and almost seven times higher than Solana’s 350 contributors.
However, the report notes that the number of contributors fell by 9% since the month of November, coinciding with the drop in the price of the cryptocurrency from its all-time high.
Investment opportunities in the venture capital sector
The technology investment firm also found that among the ten fastest growing projects in Bitcoin, Ethereum and Solana, around 40% of the projects have not had any venture capital backing, meaning investment opportunities are still plentiful.
These projects include Ethereum-based investment protocol OlympusDAO, smart contract developer ApeWorx, maximum extracted value (MEV) researcher Flashbots, and Solana-based NFT standard MetaPlex.
Cryptocurrency venture capital funding throughout 2022 has shifted its focus from decentralized finance (DeFi) to Web3 applications, according to a Cointelegraph investigation in July. Investments in Web3 accounted for 42% of the $14.67 billion invested in cryptocurrency 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 the FTX exchange.
The data was obtained from 1,000 active organizations contributing to more than 30,000 open source projects on Bitcoin, Ethereum, and Solana.. Projects eligible for the study have at least 100 stars in GitHub repositories and were active between January and April 2022.
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