Web3 developer activity still growing in the last quarter of 2022, according to a new report, despite the volatility of the crypto market and piles of negative headlines.
Ethereum, one of the largest layer-1 (L1) blockchains in the crypto ecosystem, had a 453% increase in smart contract deployment on the mainnet in Q4 2022, indicating high momentum for developers to adopt. amid the volatility of the crypto market, according to Alchemy’s Web3 Development Report.
“As we also saw in Q3, web3 developers are committed to building this ecosystem for the long haul because they believe in the technology,” Jason Shah, head of growth at Alchemy, told MastStatus. “That sustainable belief, combined with more reliable infrastructure, better tooling and growing consumer adoption each quarter, is forcing developers to dig their heels in the face of adverse market conditions.”
According to CoinMarketCap data, the global market capitalization of the crypto market has dropped from over $2 trillion in early 2022 to about $800 billion by the end of the year. The two largest cryptocurrencies, bitcoin and ether, fell 14% and 8.77% respectively from the beginning to the end of the fourth quarter.
“Particularly in the fourth quarter, developers seem to be entering a period where deploying more smart contracts is relevant given the maturity of the product, and post-merger there is renewed confidence and more affordable implementation costs,” said Shah.