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Telstra Ventures Dove Deep Into Blockchain And Despite Crypto Winter, Signs Show

Telstra’s VC arm, Telstra Ventures, took a deep dive into the world of web3 and blockchain amid the crypto crash that wiped out $1.3 trillion in investor value, with the market down 60% since January, to see who has survived and thrived.

The 12-page report, titled Blockchain Open-Source Developers Signal Strength of Web3 Community, shows that interest from web3 developers has remained strong despite the crypto bear market which has seen stablecoin terraUSD (UST) implode, the lender of crypto Celsius file for bankruptcy and put hedge fund Three Arrows Capital into liquidation after defaulting on its loans.

In this climate, venture capital investments in space also fell by a quarter (25.6%) to $9.3 billion in the first six months of 2022, from a record high. $12.5 billion over the same period last year.

Telstra Ventures’ data science team, led by Dr. Donghai He, performed health checks on three major blockchain ecosystems – Ethereum, Solana and Bitcoin – analyzing 1,000 active organizations contributing to over 30,000 projects Web3 open source.

Their main conclusions are as follows:

  • Blockchain developer participation in Web3 communities remains robust, as measured by compound annual growth rates of the number of unique active contributors per project and ecosystem each month.
  • Venture capitalists and companies are well aligned on 7 of the 10 most active projects in key ecosystems.
  • Only 4-5 of the 10 most active projects in each ecosystem are backed by venture capitalists and companies, suggesting there are still unfunded opportunities.

Yash Patel, General Partner at Telstra Ventures, said that blockchain developers’ commitment to Web3 ecosystems forms the basis for the sector’s medium to long-term viability, despite short-term price swings, adding that decisions about which protocols to use will be dictated by the use case. .

To be considered for consideration, projects have a minimum of 100 stars in associated GitHub repositories and had active contributions between January and April 2022.

Highlights of the Telstra Ventures blockchain report are:

Ethereum remains the largest and strongest developer community

  • The Ethereum contributor community has grown at a compound annual growth rate of 24.9% over the past 4 years since January 1, 2018.
  • Since Ethereum’s price peak in November 2021, the number of monthly active contributors has decreased by 9.0%.

Solana is growing rapidly and is hot on Ethereum

  • Solana contributors have grown at a compound annual growth rate of 173.0% over the past 4 years since January 1, 2018.
  • Since Solana’s price peak of $204.35 in November 2021, the number of active contributors has decreased by 21.0%.

Bitcoin continues slow and steady growth thanks to price volatility.

  • Bitcoin has experienced a compound annual growth rate of 17.1% in the number of contributors over the past 4 years since January 1, 2018.
  • Since the peak of the Bitcoin crypto price in October 2021, the number of active contributors has increased by 8.2%.

Institutional investors are aligned on robust blockchain development in each of the three primary ecosystemsand investment opportunities remain

  • 7 of the 10 fastest growing projects are backed by VCs or by companies.
  • 4 or more of the 10 fastest growing repositories in each ecosystem are backed by VCs or corporate investors.

Ethereum is the strongest and largest community

  • The upcoming Ethereum merger will move from proof-of-work to proof-of-stake, implying that the network will be able to process over 100,000 transactions per second, which is much faster and more scalable than currently. Developer enthusiasm is helping to fuel the recent price hike, and we expect more innovation to come as different chains try to outdo each other.
  • The Ethereum contributor community has grown at a compound annual growth rate of 24.9% over the past 4 years since January 1, 2018.
  • Since Ethereum’s price peak of over $4,800 in November 2021, the number of monthly active contributors has decreased by 9.0%. This compares to a price drop of x% during the same

The Solana developer community is growing rapidly

  • The Solana developer community started to take shape at the end of 2017 and the first block was created in 2020.

Solana has increased the compound annual growth rate of contributors by 173.0% over the past 4 years of volatility since January 1, 2018. Since Solana’s all-time high price of over $200 in November 2021, the number of active contributors fell slightly and decreased by 21.0%.

Steady growth of Bitcoin developer community

  • Bitcoin has seen steady growth in the number of active developers over the past eight years. The Bitcoin contributor community has experienced a compound annual growth rate of 17.1% over the past four years since January 1, 2018.
  • Since the peak of the Bitcoin crypto price in October 2021, the number of active contributors has increased by 8.2%.

You can download the report here.


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