Telstra Ventures – the investment arm of Australian telecommunications giant Telstra – has released a health report on three top blockchains, including Bitcoin, Ethereum and Solana, by examining the level of developer engagement in each ecosystem. Ventures noted that Ethereum is the “strongest and largest community” of the three, due to the highest number of monthly active contributors.
The report also found that unfunded opportunities remain widespread in the aforementioned ecosystems, with venture and corporate investors betting on only about half of the top 10 projects.
Ethereum is ruling
The number of active contributors is a key indicator of the strength of the blockchain network. They also tend to attract more regular contributors as their popularity and use cases increase. Telstra Ventures analyzed the compound annual growth rate of unique active contributors across three major blockchains, statement Since January 1, 2018, the Ethereum community has grown by 24.9% over the past four years.
Despite the sharp price drop since November, its monthly contributors slipped by just 9% as of July this year, a sign that the ongoing crypto winter has not dampened developer confidence in the network as a whole.
Additionally, the upcoming Merge, which is about to complete the transition from PoW to PoS, has stabilized overall interest as the number of monthly active developers has remained above 2,500 since the first half of 2021.
Compared to Ethereum, Solana experienced explosive growth over the same period, with a staggering 173% CAGR. However, it cannot maintain the stability of Ethereum. Since its native token, SOL, climbed to a peak price of $204 last November, the number of active contributors dropped 21% to just over 250 by July.
Unlike the two Layer 1 networks, the Bitcoin ecosystem has seen an 8% increase in monthly active contributors since BTC peaked in November. Overall, it has seen steady growth in attracting new developers over the past eight years, the report said.
Opportunity still exists
While the bear market has dampened enthusiasm for crypto VCs — Coinbase Ventures saw a notable 34% drop in deal activity in the second quarter — Telstra Ventures believes that many opportunities in the top ecosystem remain open to institutional investors.
After examining more than 30,000 open-source Bitcoin, Ethereum, and Solana projects in the Web3 ecosystem, the venture noted that 70 percent of the fastest-growing projects are backed by VCs or corporations.
Additionally, only 4 to 5 of the 10 most active projects in each ecosystem are backed by venture capital and corporate investors, suggesting that roughly half of high-potential projects remain untouched by institutional investors.
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