February 6, 2023

Telstra Ventures – the investment arm of Australian telecom giant Telstra – has released a health report on three major chains, including Bitcoin, Ethereum and Solana, by examining the extent to which developers are getting involved in each ecosystem. With the largest number of active monthly contributors, Ventures noted, Ethereum is the “strongest and largest community” of the three.

The report also found that unfunded opportunities remain widely available in the aforementioned ecosystems, with corporate and corporate investors betting only on about half of the top 10 projects in each.

Ethereum in the era

The number of active contributors is a key metric that reflects the strength of blockchain networks. As popularity and use cases increase, it also tends to attract more regular contributors. Telstra Ventures has analyzed the compound annual growth rate (CAGR) of unique active shareholders across three major major chains, Mentionsed That the Ethereum community has grown by 24.9% in the past four years since January 1, 2018.

Despite the sharp drop in prices since last November, the number of contributors per month has fallen by just 9% as of July this year, indicating that the ongoing crypto winter has not dampened developers’ overall confidence in the network.

Moreover, the upcoming consolidation preparing to complete the transition from PoW to PoS has stagnated public interest, with the number of monthly active developers remaining above 2,500 each month since the first half of 2021.

Compared to Ethereum, Solana experienced massive growth in the same period, with a compound annual growth rate of an astounding 173%. However, it fails to maintain the stability that Ethereum does. Since the original SOL token hit its peak price of $204 last November, the number of active contributors has fallen by 21%, to just over 250 by July.

In contrast to the two Layer 1 networks, the Bitcoin ecosystem has seen an 8% growth in monthly active contributors since BTC peaked in November. Overall, the report said, it has had steady growth in terms of attracting new developers over the past eight years.

Opportunities are still available

Despite the bear market shying away from enthusiasm from crypto VCs — notably reflected in Coinbase Ventures’ second-quarter transaction activity that fell 34% — Telstra Ventures believes that many opportunities within the major ecosystems remain open to institutional investors.

After looking at more than 30,000 open source projects from Bitcoin, Ethereum, and Solana in the Web3 ecosystem, the project notes that 70% of the fastest growing projects are backed by venture capital firms or corporations.

Also, only 4-5 of the top 10 active projects in each ecosystem are backed by corporate and corporate investors, indicating that nearly half of the high-potential projects remain untouched by institutional investors.

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