U.S. loses web3 lead amidst regulatory pushback, emerging markets rise
- The blockchain developer share in the U.S. fell from 40% in 2017 to 29% in 2022.
- Emerging markets like India were capturing the share away from the U.S.
As per an analysis by Developer Report, the U.S. ceded a considerable chunk of the blockchain development pie to emerging markets around the world.
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The report highlighted that developer share in the U.S. fell from 40% in 2017 to 29% in 2022, corresponding to about 2% drop every year.
The ongoing crackdown by regulators on centralized exchanges and other crypto participants has left the U.S. crypto sector in a state of trepidation, threatening the market dominance that the country has enjoyed over the last few years.
India, Ukraine show consistent web3 growth
The overall growth in development activity was encouraging, even as the crypto network value dropped to January 2018 levels, the report underlined. The number of developers jumped almost by four times during the same time period.
U.S. was still the market leader at the time of writing, accounting for 29% of all blockchain developers. European nations also enjoyed a combined market share of 29% while Asia was home to 13% of all web3 developers.
But while U.S.’ share has declined over the years, emerging markets like India saw their developer share steadily increasing from 2% in 2017 to 6% in 2022. India’s growth trajectory showed more consistency as compared to other regions, the report stated.
India’s lucrativeness as a growing market for blockchain development was evidenced by the data showing how the country was eating into the share of the U.S.
Data from Europe also revealed an interesting development. While UK and Germany lead in developer share, both countries saw their dominance decline in the 2017-2022 period. Conversely, conflict-ridden Ukraine’s share increased from 4% to 6% since the war.
Will it only get worse?
Recently there were reports that Coinbase was contemplating setting up a trading platform outside the U.S. While Coinbase didn’t make any official statement, the report had weight owing to concerns of an enforcement action on the largest crypto exchange in the U.S.
Brad Garlinghouse, the CEO of Ripple Labs, said in an interview that the crypto industry has already moved overseas and the hawkish stances of the SEC may dent the prospects of U.S. as an inviting destination for blockchain development and cryptos.