Resilience in the Face of Market Challenges
Web3 developers are not letting the ongoing crypto bear market dampen their spirits. In fact, a recent report from Alchemy asserts that these developers are “more active than ever,” particularly on the Ethereum network. The insights come from Alchemy’s Q3 2022 report published on October 13, which suggests that this year could be a watershed moment for the Web3 development community.
Record Smart Contract Deployments
The report reveals some impressive statistics: approximately 36% of all smart contracts ever deployed and verified on the Ethereum blockchain occurred in 2022, amounting to nearly 118,000 contracts out of over 323,700 total. This milestone is remarkable despite Ether’s price plummeting nearly 66% since the beginning of the year and total value locked (TVL) in decentralized finance (DeFi) protocols falling around 70%, as noted by DappRadar.
Exploding Smart Contract Activity
Smart contract deployments have seen a phenomenal increase of 40% since the first quarter of the year, setting consecutive all-time highs throughout Q3, with a peak of 17,376 deployments in September alone. To put this into perspective, there was a 143% uptick in smart contract deployments compared to Q3 2021, with over 48,500 contracts deployed just in that quarter.
Impact of Ethereum’s Merge
Following Ethereum’s much-anticipated Merge—an upgrade that transitioned the blockchain from a proof-of-work (PoW) model to proof-of-stake (PoS)—the data indicates that smart contract deployment surged by 14% in the two weeks afterward. This points to a possibility that some developers were waiting for the Merge as a green light to launch their projects.
Growing Development Community
Alchemy also delved into the popularity of Web3 development libraries, Ethers.js and Web3.js, which enable developers to interact with blockchain data and craft Web3 applications. The report notes that the number of installations for these libraries has tripled compared to Q3 2021, now averaging over 1.5 million downloads per week.
A Historical Comparison
While the narrative has emerged that the current bear market presents a unique opportunity to build valuable Web3 products, historical precedent suggests otherwise. In the bear market from 2017 to 2020, smart contract deployments saw a stark 45% decline from 2018 to 2019. However, the current metrics reveal a 50% increase in smart contract deployments this year compared to 2021, defying previous cycles.
Looking Ahead
With developers thriving in the face of adversity, the momentum in the Web3 space appears robust. As the industry continues to mature, the increased activity among developers could pave the way for exciting innovations and applications, potentially setting the stage for future growth once market conditions stabilize.
