A recent report revealed that North America is losing ground to other regions in a key sector. The continent, led by the United States, has been eliminated as the largest hub for cryptocurrency developers after recording a sharp decline in its developer share over the past decade.
Asia leads cryptocurrency developers while the US loses ground
Venture firm Electric Capital recently analyzed the profile of hundreds of thousands of developers to study cryptocurrency developers geographically as part of its 2024 Global Crypto Developer Data.
report, subscriber Maria Chen, general partner at Electric Capital, revealed on X that North America has been losing market share over the past nine years based on more than 110,000 profiles analyzed.
In 2021, the continent lost its leadership in the share of industry developers to Asia, while Europe displaced the Americas in 2016. The sharp decline represents a 45% decline in the past nine years, from 44% in 2015 to 24% this year.
Developer share by continent. Source: Maria Shen on X
Meanwhile, its share in Asia more than doubled in the same time frame, rising from 13% to 32%. This year, Asia became the top continent for cryptocurrency talent for the first time, surpassing Europe’s 30% market share.
Although North America’s market share has declined, the United States remains the industry’s top developer, with a share of 18.8%. However, the country has recorded a steady decline since 2015, with the share of developers declining by 51%.
During this time frame, the industry has increased from a $5 billion to a $2.4 trillion market. As of 2024, 81% of cryptocurrency developers live outside the United States. India is the second largest country in terms of the number of developers, recording a share of 11.8%, while the United Kingdom ranked third with a share of 4.2%.
Unclear policies affect innovation in the United States
Electric Capital’s general partner questioned whether the country’s negative regulatory environment was to blame for the decline in market share. Shen believes that the United States needs clear and transparent crypto policies to maintain its leadership.
It is worth noting that many industry figures and community members have criticized the crackdown launched by US regulators on the sector for negatively impacting the industry’s growth and development over the past few years.
The report also noted that more than half of developers live outside US tech hubs. 64% of cryptocurrency developers live outside of California and New York, with the former recording a 22.3% share and the latter 13.7%.
Developer share by state. Source: Maria Shen on X
Shen noted that these data show “an opportunity to create jobs and wealth for policymakers.” Additionally, she stated that lost ground in this sector represents a “drain on the national security and innovation of the United States,” suggesting that it should not be a partisan issue.
Many experts have confirmed that there is a shift in the United States this year as investors have increased their pressure for clear and better cryptocurrency policies from politicians at all levels. Earlier this year, US Congressman Jamaal Bowman lost the Democratic primary in New York after Fairshake’s super PAC spent millions on ads against his anti-crypto stance.
Likewise, John Deaton, a pro-XRP lawyer, is trying to beat Senator Elizabeth Warren for the Massachusetts Senate seat. Warren was one of the most prominent anti-industry figures among US lawmakers.
With the US presidential election just days away, the industry eventually expects a change in the Biden administration’s position, regardless of the winner.
Total crypto market capitalization is at $2.36 trillion in the three-day chart. Source: TOTAL on TradingView
Featured image from Unsplash.com, chart from TradingView.com