The activity of blockchain developers is really a measure of the success of cryptocurrencies

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The number of weekly active blockchain developers has decreased by more than 26% in the past three months. However, many have tried to downplay the news. Perhaps in particular, many argued that the loss of “tourism builders” and “tourism investors” was not a loss at all, as it will allow the industry to focus better on real projects.

However, the reality is that any smart contract platform depends on significant blockchain development activity. Those who do not wither and die. It is misleading to say that the exodus of developers or investors is indeed a good thing. Indeed, it is a great responsibility. This sector depends on innovation and the more innovators there are, the greater the competition.

What some see as tourism builders and investors are often people independent of the blockchain people who aren’t necessarily blockchain enthusiasts, but people who understand the industry and see its value. These are people who can bring their talents and treasures to different industries. These are people that the industry should want to involve.

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Does this mean that those new to blockchain technology should be tasked with building exchanges or the security apparatus? No. It is imperative that there is a movement towards greater security. But having their ideas, which they then realize, is a great thing. The free market decides which ideas have value. This is the great advantage of decentralization people decide where there is value.

The best way to weather this storm is to recognize the truth about the slowdown. As institutional investors dived more and more into Bitcoin and other digital assets, cryptocurrencies were increasingly closely related to traditional assets. Period.

Have other things exacerbated the cryptocurrency winter? Of course. Perhaps most notable are the nine-digit hacks that continue to plague the industry. This has clearly become a major flaw in the digital asset infrastructure.

The winter of cryptocurrencies will not end by inviting these investors to protect themselves from the volatility of cryptocurrencies. It can only end up advocating the kind of regulatory environment that will reduce investor fear in the long run.

Although the MiCA was proposed by the EU, it still has a long way to go before its full implementation. Now that SEC Chairman Gary Gensler has given his approval, Congress will likely approve the CFTC’s oversight of Bitcoin and Ethereum, and we may begin to see movement in the US after the November election.

This could then allow Congress to find the momentum to propose other necessary regulations. The UK has a new Prime Minister and, due to the Queen’s death, will have an even longer transition period.

However, governments around the world are watching where the US and UK go from here. As the regulatory environment evolves, you will begin to see developer activity return to normal levels. This will bring prosperity back to the industry.

Richard Gardner is the CEO of Modulus. He has been a globally recognized subject matter expert for over two decades, offering intricate insights and analysis on cryptocurrency, cybersecurity, fintech, surveillance technology, blockchain technologies, and management best practices in general.

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