Despite the fierce headwinds the crypto industry has faced over the past year, Web3 development activity has grown at an impressive rate, according to a new report.
One of these key indicators is the number of smart contracts deployed on the Ethereum mainnet, which grew 293% from 2021, hitting rates that resembled previous year highs, according to the “Q4’22 State of Web3 Report” released today by blockchain software and development company Alchemy.
Remarkably, this peak of activity occurred in the fourth quarter of 2022, as did Reduced FTXconduct mass releases of funds on the largest stock exchanges in the sector.
According to the report, the number of smart contracts deployed in the fourth quarter of 2022 increased by 453% quarter-over-quarter, reaching a staggering 4.6 million.
Additionally, the deployment of smart contracts on Ethereum’s Goerli testnet grew by 187% in the last three months of 2022 – and as much as 721% year-over-year – to reach an all-time high of 2.7 million and report that more decentralized applications (dapps) may enter the market in the future.
The report used multiple sources for data collection purposes, including Dune Analytics, DappRadar, and Github, among others.
Developer activity on the rise
Smart contracts, a term invented by blockchain pioneer Nick Szabo in the 1990s, are self-executing pieces of computer code that got their start on the Ethereum blockchain, laying the foundation for decentralized exchanges (DEX) and non-custodial lending and borrowing applications.
“The Web3 developer community is proving to be extremely resilient. This report shows that they are more focused and motivated than ever to build the future of this ecosystem.—while honestly acknowledging the unnecessary setbacks we’ve seen in 2022,” said Alchemy Chief Growth Officer Jason Shah. Decrypt.
Additionally, in December, Alchemy surveyed 985 developers, and of those, 94% said they were committed to building in Web3, which “highlighted a positive outlook despite being deep in the crypto winter,” according to Alchemy.
Following the launch of its University of Alchemy in October, the San Francisco-based company said more than 100,000 applications poured in, indicating strong interest in developing Web3 development skills.
“We are encouraged by these numbers and expect developer activity to continue to increase in 2023,” Shah said. Decryptwhile acknowledging that this can potentially happen at a slower pace given decline in investment in Web3 companies.
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