The crypto industry faces a sharp decline in developer activity as many shift to AI, with investment in the sector also dropping significantly.
The crypto sector is experiencing a significant decline in developer activity, with a 75% drop in code publications since early 2025, falling from 850,000 to 210,000, as reported by Artemis. The number of active developers has decreased by 56%, leaving just 4,600 in the space.
This decline occurs in stark contrast to the broader IT industry, which has seen growth. GitHub's user base expanded by 36 million in 2025, with overall programming activity increasing by 25%. This shift indicates a mass migration of developers from crypto to artificial intelligence, where over 4.3 million AI repositories exist on GitHub, and generative AI projects attract more than one million contributors monthly.
Major blockchain networks are particularly affected, with Ethereum's developer count down 34% to 2,811, Solana down 40% to 942, and Base down 52% to 378. Newer networks like Aptos and Celo have lost over half their developers, while BNB Chain has seen an 85% drop in activity.
The only area showing growth is non-custodial wallet infrastructure, which has grown by 6%. The industry is losing many newcomers and part-time developers, whose ranks have decreased by 58%. In contrast, the number of experienced developers has risen by 27%, now making up 70% of the programming workforce in crypto projects.
While typically, developer activity rebounds with a cryptocurrency market upturn, the current situation is different. The generative AI sector offers attractive alternatives, including active venture funding and high commercial demand, making it difficult for talent to return to blockchain development.
Investment Decline in Crypto
The crypto industry's challenges are compounded by a decline in venture capital. In the first quarter of 2026, total investment fell to $2.2 billion, the lowest in six years, with seed rounds returning to 2020 levels at $166 million. Investments were distributed as follows:
- Seed rounds: $166 million
- Series A: $293 million
- Series B: $237 million
- Series C: $495 million
- Strategic investments: $606 million
Investor interest was primarily in crypto financial services (24%) and the DeFi sector (27%), while funding for core infrastructure and trading services remained minimal. Current venture strategies are focused on stablecoins, payment networks, and new primitives to maximize profits from ongoing transactional market activity.
