Web3 Developer Activity Plummets by 40% Over the Year

The number of active developers in the Web3 sector has decreased by nearly 40% over the past year, according to data from the analytics platform Artemis Terminal. 

On March 17, 2024, the number of weekly engaged creators in open repositories was 12,380. By March 16, 2025, this figure had fallen to 7,600, marking a decline of 38.6%.

Developer activity is a key indicator of the Web3 ecosystem’s “health.” It reflects the pace of innovation and the level of support for existing protocols, directly impacting the industry’s resilience and long-term development.

Optimism developer Binji Pande believes the decline in activity is linked to a “lack of real value” in the blockchain ecosystem.

this might be the most important chart in crypto right now.

developer activity: one of the clearest signals of long-term health is down meaningfully from its peak. it appears that attention has shifted, incentives have dried up, and speculation once again moved faster than… pic.twitter.com/NAnOWqPymn

— binji (@binji_x) April 7, 2025

He explained that too much focus is placed on “narrative development”—projects that “talk more than they do.” As a result, developers lose incentives, and significant products remain overshadowed by speculation.

“If nothing is happening on the blockchain, its use loses meaning,” said Pande.

The expert added that the ecosystem should focus on developing solutions that are genuinely needed by users.

Developer Ben Ward noted that the market and venture capitalists have long rewarded projects that do not provide real value.

Markets and VCs have rewarded protocols without products for too long. Only thing in crypto with the PMF is the defi/memecoin casino, but that’s not sustainable.

We’re still a long way from building real shit that real people want to use.

— Ben Ward (@wardy_ben) April 7, 2025

In his view, the industry’s main profitable product has become the “memecoin casino” in DeFi. 

According to Pande, the Web3 ecosystem has changed significantly, but not for the better. He noted that cryptocurrencies need to “feel like part of the future again.”

Back in March, the Dragonfly and Coinbase-backed Web3 project Harpie announced a complete shutdown due to a failed business model.