The decline of blockchain developers
The number of weekly active blockchain developers has dropped by more than 26% in the past three months. However, this news did not receive the attention of crypto investors. From a personal point of view, many argue that developers and investors leaving the blitz market are just tourists in the industry, and claim that this loss is negligible, as it will allow the blockchain industry to better focus development on real projects.
However, the reality is that any Smart contract platform depends on the activities of blockchain developers. Therefore, the migration of developers or investors is not a good sign. In fact, it is a huge risk. The blockchain industry grows based on innovation and creativity, and the more innovators, the greater the competition.
The role of developers in blockchain
The short-term developers and investors are essentially non-blockchainiests they’re not necessarily blockchain enthusiasts but people who understand the industry and see the potential in it. These are people who can devote their talents and treasures to different industries, and are always prioritized to develop the industry ecosystem.
Does that mean that newbies in blockchain technology are responsible for building exchanges or security apparatuses? The answer is no. There needs to be a movement towards higher security to ensure stability. But for their ideas to become reality is a wonderful thing.
The blockchain market allows for the freedom to decide on valuable ideas. That’s the huge benefit of decentralization, where anyone is empowered to decide where the value lies.
The best way to weather this storm is to acknowledge the truth about the downturn. As institutional investors become increasingly immersed in Bitcoin and other digital assets, cryptocurrencies are increasingly correlated with traditional assets.
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Crypto winter and the future of blockchain
Will other issues exacerbate the crypto winter? Perhaps most notably, 9-figure hacks continue to rage in the market. That has become a major defect in the infrastructure of digital assets.
The crypto winter won’t end by calling on investors to protect themselves from crypto volatility. It can only end up advocating for the kind of regulatory environment that will reduce investor fear in the long term.
Although the EU Parliament has passed the MiCA bill, it still has a long way to go to fully implement it. Now that SEC chairman Gary Gensler has stamped his approval, Congress will likely approve the CFTC’s oversight of Bitcoin and Ethereum, and we may start to see some movement in the United States after the November election.
That could allow Congress to find the incentive to make other necessary regulatory provisions. The UK has a new Prime Minister, and due to the departure of the Queen, there will be an even greater short-term.
However, governments around the world are watching the future direction of the United States and the United Kingdom. When the rules are redirected, you will find that developer activity returns to normal levels. This will bring prosperity back to the industry.
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