ver the last three months, the number of weekly active blockchain developers has dropped by more than 26%. Many, however, tried to play down the news. Perhaps most notably, many claimed that the loss of 'tourist builders' and 'tourist investors' was no loss at all, as it would enable the sector to focus better on real projects.
However, any innovative contract platform is reliant on notable blockchain developer activity. Those who lack them wither and die. It is deceptive to claim that the exodus of devs or investors is a good thing. In fact, it is a major liability.
Some refer to tourist builders and investors as blockchain-agnostic people - individuals who comprehend the industry and see the value in it but aren't necessarily blockchain enthusiasts. These are people who can apply their talent and treasure in a wide range of industries. These are the people the industry should want to be engaged with.
Does this imply that those new to blockchain technology should be tasked with developing exchanges or security systems? No. Definitely, there needs to be a move toward greater security. But having their ideas, which they then bring to actuality, is fantastic. What ideas have value is determined by the free market. That is the major advantage of decentralization: the people decide where there is value.
Recognizing the truth about the downturn is the best way to weather the storm. As institutional investors became more involved in Bitcoin and other digital assets, cryptocurrencies became increasingly correlated with traditional assets. Period.
Did anything else contribute to the crypto winter? Without a doubt. The nine-figure hacks that continue to haunt the industry are perhaps the most notable. This has clearly now become a major flaw in the digital asset infrastructure.
The crypto winter will not end by chastising those investors who are safeguarding themselves from the crypto volatility. It can only be concluded by advocating for the type of regulatory structure that will reduce investor fear in the long run.
While the EU proposed MiCA, it has a long way to go before it is fully implemented. With SEC Chair Gary Gensler's approval, Congress will almost certainly approve the CFTC's oversight of Bitcoin and Ethereum. We may see some changes in the United States after the November election.
This may give Congress the momentum to move forward with other necessary regulatory provisions. The United Kingdom has a new Prime Minister and, as a result of the Queen's death, will experience an even longer transition period.
Governments worldwide are watching what the United States and the United Kingdom do next. As the regulatory environment shifts, developer activity will begin to return to normal levels. This will restore the industry's prosperity.
Do you agree that blockchain developer activity is clearly the measurement of the success of the crypto market?