Interpreting the Web3 Developer Report: Is It Suitable to Enter Web3 Amid the 2022 Bear Market?
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Interpreting the Web3 Developer Report: Is It Suitable to Enter Web3 Amid the 2022 Bear Market?
Is it suitable to enter Web3 and become a Web3 developer during the 2022 bear market? Without a doubt, the best time is now.
Navigating Web3 tides with focused insights
Original article: Interpreting the Latest Web3 Developer Report | Predicting the Best Timing for Developers to Enter the Web3 "Bull Market"
Author: TinTinLand
The cryptocurrency market has been sluggish in 2022. Amid bear market volatility and frequent black swan events, it may not seem like an ideal time for users to invest or enter the space. But what about developers? Is this a good moment for new developers to enter Web3? Before answering this question, TinTinLand will provide a detailed analysis of Alchemy’s latest “Web3 Developer Report (Q3 2022),” a platform dedicated to Web3 development.
The report aggregates data from Etherscan, DappRadar, GitHub, NPM JS, CoinMarketCap, and Internet Archive, offering a comprehensive and macro-level view of the current state and future outlook of Web3 developers. The key data points presented in the report should help us better understand how Web3 developers are actually faring during this crypto winter—and ultimately answer our core question: amid the 2022 bear market, is now a good time to enter Web3?
Usage of Web3 Libraries
As of November this year, amid significant macroeconomic fluctuations, both Bitcoin and Ethereum have dropped approximately 70% from their November 2021 highs. Decentralized finance (DeFi) and the NFT market have also been severely impacted by the market crash. Compared to 2021, the total value locked (TVL) in DeFi applications has declined by 69% year-over-year, while NFT trading volume has fallen by 88% year-over-year.
Despite this, 2022 marks the year with the highest number of active Web3 developers compared to 2021 or even earlier years. This conclusion can be drawn from the usage trends of Web3 libraries. The report first analyzes two critically important Web3 libraries: Ethers.js and Web3.js. Both are standard JavaScript API libraries for Ethereum that enable developers to interact with the Ethereum blockchain—reading data through service providers and sending transactions on behalf of users, enabling actions such as depositing into DeFi protocols or minting NFTs. These tools are essential for building Web3 products.
Compared to 2018, the number of developers installing Ethers.js and Web3.js has increased tenfold in 2022, with steady annual growth. Weekly downloads now reach 1,536,548, representing a threefold increase compared to Q3 2021.
Smart Contract Deployments
A smart contract is a special protocol designed to facilitate, verify, and enforce the execution of agreements. Specifically, smart contracts are a key reason why blockchains are considered “decentralized,” allowing traceable, irreversible, and secure transactions without third-party intermediaries. They enable distributed trust computation and are one of the features that distinguish Ethereum from other blockchains.
Smart contracts embody the core logic behind DeFi protocols and NFT minting, much like how server-side logic defines the behavior of applications and databases in many modern internet products. By analyzing the deployment statistics of Ethereum smart contracts, the report provides insight into the number of smart contract developers and overall industry growth.
By Q3 2022, 117,922 verified smart contracts had been deployed—the highest number in any single year to date. From 2015 to Q3 2022, a total of 323,749 smart contracts were deployed, meaning contracts deployed in 2022 alone account for 36% of the cumulative total.
Looking at market fluctuations over the years, the number of smart contracts on Ethereum rose from zero in 2015 to 44,023 during the 2018 bull run—a previous peak. Now, in Q3 2022, the number has reached a historic high of 117,922, reflecting a 50% year-on-year growth rate between 2021 and 2022.
Number of Dapps
Decentralized applications (Dapps) are applications running on blockchain networks, with use cases spanning gaming, finance, social media, and more. Dapps operate via smart contracts on distributed networks, offering higher transparency and decentralization than centralized apps, though they also present new development challenges for beginners.
According to DappRadar, there were only 1,000 active Dapps in 2018. By Q3 2022, this number had grown by 1,200%. With improvements in API libraries, developer tools, and technologies, building Web3 Dapps is easier than ever before.
Beyond the explosive growth in total Dapp count, the report also highlights rising activity across various sectors, including wallets and DeFi infrastructure, as well as social infrastructure. Wallets, serving as users’ primary gateway to assets and digital identity across different Dapps, best reflect user adoption in the Web3 ecosystem. As the first breakout sector, DeFi was quickly followed by social applications, indicating Web3 developers’ broad push into diverse user needs and real-world use cases.
Web3 Developer Income
When Web3 evolves beyond just a technological trend into a revolutionary philosophy, any ambitious tech professional familiar with its principles can become a Web3 developer and join in shaping the future. The rewards go beyond a fast-paced innovation environment and groundbreaking development opportunities—they also include strong financial incentives. The scarcity of skilled Web3 developers has clearly driven substantial increases in compensation.
In our previous article “Beginner's Guide: Web3 Tech Stack & Average Salary Overview,” we outlined average salaries for Web3 developers. Web3 developers typically earn between $90,000 and $150,000 annually, with senior roles reaching $500,000 or even $750,000. According to ZipRecruiter, the average annual salary for Web3 developers at large companies is $154,550, or about $74 per hour.
Beyond base salaries, income models in Web3 are diverse. For example, compensation often includes protocol tokens—akin to stock options directly tied to product success. In this flat governance structure, token holders gain voting rights. Similar to liquid equity, a fundamental premise of Web3 is that every product is simultaneously an investment opportunity. The immense potential of Web3, the shortage of talented developers, and generous compensation packages make a compelling case for becoming a Web3 developer.
As of 2022, demand for Web3 developers continues to rise, with salaries significantly outpacing those in other industries. While the number of Web3 developers remains smaller than their Web2 counterparts, research suggests we are standing at the edge of an explosive industry growth phase.
The future of Web3 is bright. Its emergence promises the realization of decentralized applications, a return to the public internet ideal, and a direct challenge to the dominance of corporate giants in the Web2 era. Developers who participate not only reap financial rewards but also seize the opportunity to become pioneers and builders of the next-generation internet.
The Best Time is Now
Since 2020, Web3-related buzzwords have started gaining traction. By 2021, the concept and theory of Web3 rapidly gained popularity, fueled by growing engagement within the crypto community and investment direction from prominent venture capital firms such as A16Z. Entering the 2022 bear market, despite market volatility, VC activity in Web3 remains intense. The “Web3 Developer Report” reveals striking data—developer numbers, Dapp counts, and categories are all growing faster than during bull markets.
Regardless of bull or bear markets, Web3 developers continue to drive the industry forward through technology.
If we think of Web3 as LEGO blocks for developers, its progress lies in iterating and improving upon the foundations of the previous internet era. For Web2 developers looking to transition into Web3, prior experience and technical skills are not barriers—they are assets and accelerators. Returning now to the original question: amid the 2022 bear market, is it suitable to enter Web3 and become a Web3 developer?
The answer is unequivocal: the best time is now.
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