Blockchain developer activity has dropped over 26% in three months

Over the last three months, the activity of its blockchain developers has decreased by more than 26% in weekly active developers, a recent data analysis from Artemis revealed. Crypto researchers suggest that this is attributed to the departure of “tourist investors” and “tourist builders” that would give real builders to get real work done.

A market downturn caused a more than 26% decline in weekly active developers, blockchain data aggregator Artemis revealed. Over the last three months, the four top smart contract platforms witnessed decreases in developer activity, including Ethereum (ETH) – 30.5%, Polkadot (DOT) – 43.6%, Solana (SOL) – 48.4%, and Cosmos (ATOM) – 48.9%.

One of the key indicators of a smart contract platform’s success is the activity of its blockchain developers. A platform with few developers would probably find it difficult to expand.

Tascha Che, a cryptocurrency researcher and the founder of Tascha Labs, tweeted on Sept. 8 that she didn’t think the trend was all that concerning. She also said that the decline was attributed to the departure of “tourist investors” and “tourist builders” that would give real builders “peace and quiet to get real work done.”

Meanwhile, a Binance research analyst claimed on Twitter that developer activity will be an “essential indicator” to take into account in the future because of the “flywheel effect” it has on the industry.

Interplanetary File System (IPFS), a decentralized data storage platform, and the blockchain network Internet Computer were two leaders, witnessing a growth of 206.6% and 21.7%, respectively.

According to crypto asset manager CoinShares, institutional investors’ trading activity for crypto funds dropped to $1 billion last month, which stood at the second-lowest amount of the year.

Furthermore, volumes have stayed at or just above $1 billion in the past three weeks. CoinShares noted last week’s decline to $1 billion made it the second-worst trading week thus far this year, with a 55% decrease from the year’s average trading volume.

At the same time, another research from Glassnode indicated that interest has been declining among retail traders, as well. Although Bitcoin‘s price increased slightly last week, trading volume for transactions costing below $1,000 decreased consistently due to retail traders, according to Glassnode.