Despite a significant decline in digital asset markets, blockchain developer activity remains on an upward trajectory. A recent Santiment report shows substantial growth in development efforts across the leading ten crypto ecosystems, with increases varying from 11% to 26% over the last month.
Santiment's analysis highlights that the Harmony network recorded the most significant rise in development activity, increasing by 26%, alongside a 4.7% boost in active contributors. Gnosis followed closely with a 25% surge, although it was unique in reporting a 2.2% decrease in contributors.
Other ecosystems, such as Avalanche and Arbitrum, also registered improvements, with development activity rising by 23% and 20%, respectively. The Ethereum network, despite being severely impacted by the broader market decline, experienced a 13% increase in development events and a 1.9% uptick in active contributors.
The BNB Chain ecosystem reported a 17% rise in developer activity. Meanwhile, Polygon and Solana, two highly utilized blockchain networks, experienced growth rates of 19% and 17%, respectively. Cosmos saw a 9% increase in development efforts, with a notable 2.8% rise in contributor numbers.
These developments occur amid a declining crypto market backdrop. According to CoinGecko, total market capitalization has fallen by nearly 10% in the past 24 hours to $2.84 trillion.
Investor sentiment has deteriorated significantly, with the Crypto Fear and Greed Index dropping from 49 to 10, indicating a shift from "neutral" to "extreme fear."
Bitcoin is currently trading at $83,833 following an 8.9% decline, reducing its market cap from $1.85 trillion to $1.66 trillion. Ethereum has suffered a more pronounced impact, falling by 10.9% to a 16-month low of $2,091. Analysts caution that the token may retreat to $1,200, echoing bear market lows from late 2022.
Several altcoins also saw sharp declines following a brief rally driven by former President Donald Trump's announcement over the weekend. As of now, XRP has dropped by 8.5% to $2.36, SOL has decreased by 14.7% to $136.4, and ADA has plunged by 15.6% to $0.804. The initial rally was triggered by Trump's indication that a proposed U.S. crypto strategic reserve might include these assets.
The market's negative reaction was compounded by Trump's confirmation of new 25% tariffs on imports from Canada and Mexico, along with plans to double tariffs on Chinese goods from 10% to 20%.
Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.