Cryptocurrency Industry Trends Report: Over half of crypto workers are from the West, with a 20% developer turnover rate within a year!

With Bitcoin's surge in the first half of this year, reaching its highest price in over a year, it seems to imply that the crypto winter is thawing. However, two research reports from We3 Data Analytics Center and venture capital institutions, after in-depth analysis of the past and current situation of the crypto industry, have found that there are more things worth paying attention to.

US Holds Nearly One-Third of Crypto Workforce

According to a report cited by K33 Research as reported by Blockworks, as of July this year, the cryptocurrency industry employed nearly 190,000 people, with 55% coming from Western countries such as North America and Europe, and the United States accounting for 29% of crypto workers.

In Asia, India takes the lead with 20% of the crypto workforce in Asia, with a preference for developer positions. Interestingly, despite China's hostile stance towards the crypto industry, it remains the second-largest employer of crypto workers in Asia.

Crypto Workers Primarily Employed at Exchanges

The report highlights that crypto workers are mainly employed by exchange companies, accounting for one-third and playing a crucial role. Crypto financial services make up 25.8%; on-chain protocols, data analysis, and mining account for 21%; and the least represented are NFT and Web3 game jobs, making up only 6% of the total workforce.

In addition, crypto companies often opt for remote work and establish headquarters in regions with friendly regulations and lower tax rates to minimize operational costs.

20% of Crypto Industry Developers Exiting

However, according to another report from venture capital firm Electric Capital, the number of active developers in open-source crypto projects decreased by 22% in the past year, but increased by 25% and 92% within one to two years, respectively. Analysts speculate that the decline in developers could be attributed to the rise of more attractive fields like AI.

Most Departing Developers are Novices

However, most of those leaving are developers with less than a year of experience in the crypto industry, contributing less than 20% of the overall workforce. On the contrary, veterans with over a year of experience account for the remaining 80% of productivity, showing a nearly 16% increase in the past year.

It was also found that developers who entered the crypto industry during bear markets tend to leave faster than those who joined during other periods, and newcomers in 2023 have shorter stays in the industry compared to those who joined in the previous two years. In other words, the turnover rate for new developers is increasing year by year, especially during bear markets.

This trend also reflects a declining interest in cryptocurrencies, with new developers and some venture capital institutions leaving the crypto space amid market fluctuations.

However, the report clarifies that this does not necessarily signal a warning, as similar situations have occurred during the previous two peaks in the crypto market, indicating it can be viewed as normal market dynamics.