A recent report revealed North America is losing ground to other regions in a key sector. The continent, led by the US, was dethroned as the largest hub for crypto developers after recording a sharp decline in its developer’s share over the past decade.
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Asia Leads Crypto Developers While US Loses Ground
Venture firm Electrical Capital recently analyzed the profile of hundreds of thousands of developers to study crypto developers geographically as part of their Global Crypto Developer Data for 2024.
The report, shared on X by Maria Shen, General Partner at Electric Capital, revealed that North America has been losing market share over the last nine years based on over 110,000 analyzed profiles.
In 2021, the continent lost its lead in industry developer share to Asia, while Europe dethroned the American continent in 2016. The sharp decline represents a 45% drop in the last nine years, from 44% in 2015 to 24% this year.
Developer share by continent. Source: Maria Shen on X
Meanwhile, Asia more than doubled its share in the same timeframe, climbing from 13% to 32%. This year, Asia became the top continent for crypto talent for the first time, surpassing Europe’s 30% market share.
Despite North America’s market share decline, the US remains the top country in industry developers, having an 18.8% share. Nonetheless, the country registered a steady decline since 2015, dropping 51% in developer share.
During this timeframe, the industry increased from a $5 billion to a $2.4 trillion market. As of 2024, 81% of crypto developers live outside the US. India is the second-largest country by developers, recording an 11.8% share, while the UK took the third spot with a 4.2% share.
Unclear Policies Impact Innovation In The US
Electric Capital’s General Partner questioned whether the country’s negative regulatory environment is responsible for the market share drop. Shen considers that the US needs clear and transparent crypto policies to maintain its lead.
It’s worth noting that many industry figures and community members have criticized the US regulators’ crackdown on the sector for negatively impacting the industry’s growth and development over the last few years.
The report also shared that over half of developers live outside the US’s tech hubs. 64% of crypto developers live outside California and New York, with the former registering a 22.3% share and the latter 13.7%.
Developer share by state. Source: Maria Shen on X
Shen noted this data shows “an opportunity for job and wealth creation for policymakers.” Additionally, she stated that the lost ground in this sector is a “national security and innovation drain for the US,” suggesting that it should not be a partisan issue.
Several experts have asserted there was a shift in the US this year as investors increased their push for clear and better crypto policies from politicians at every level. Earlier this year, US congress member Jamaal Bowman lost the NY Democratic primary after Super Political Action Committee (PAC) Fairshake spent millions in advertisements against his anti-crypto stance.
Similarly, Pro-XRP lawyer John Deaton is attempting to win over Senator Elizabeth Warren for Massachusetts’ Senate seat. Warren has been one of the most prominent anti-industry figures among US lawmakers.
With the US presidential elections just a few days away, the industry ultimately expects a change from the Biden administration’s stance, regardless of the winner.
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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