Citing a report by Electric Capital, Turner tells his 2.21 million YouTube subscribers that the two layer-one blockchains are able to attract and retain developers despite getting significantly less funding than the likes of Solana (SOL), Polygon (MATIC) and Near Protocol (NEAR).
Turner says that’s a sign that DOT and ATOM will shine in the next crypto cycle.
“Crypto projects with lots of funding have been the least affected by the bear market. This includes existing blue chip crypto projects like Polygon, Solana and Near protocol. It also includes potential future blue chip crypto projects like Aptos…
However, there are exceptions to this rule like Polkadot and Cosmos…
The ability to continue building a developer base despite having significantly less funding is another quality both projects share.
Call me crazy but I think this is concrete evidence that Polkadot and Cosmos have the most committed communities and, therefore, the most productive ecosystems.
The fact that we didn’t see fireworks from either DOT or ATOM during the previous crypto cycle suggests the next one will be their time to shine.”
According to the Electric Capital report, the number of developers on Solana, Polkadot, Cosmos, and Polygon increased from fewer than 200 during the 2018 crypto winter to over 1,000 currently. Other blockchains such as Aptos (APT) saw the number of developers grow by over 50% year-over-year. Developers on Near Protocol increased by 40% year-on-year.
However, Turner says that regulatory risk and the possibility of crypto prices falling further could harm the ability of projects to hold on to developers.
“The only thing I’ll caution is that there’s a real possibility that we haven’t seen the bottom of the current crypto bear market yet.
If the crypto market continues to crash, or even just move sideways, it could have a negative impact on developer retention for all crypto projects and protocols.
There’s also the very real risk that regulators in the United States, specifically the SEC [U.S. Securities and Exchange Commission], will crack down on some of these crypto projects.”
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney