US Crypto Talent Declines Amidst Surge in Blockchain Adoption

June 13, 2024 at 10:16 AM GST 2 mins read News

Regulatory clarity is crucial as the US sees a 14-point drop in crypto developer share, risking blockchain innovation and talent drain.
Fortune 100 on-chain projects surged by 39%, with 56% of Fortune 500 firms engaged, highlighting growing corporate interest in blockchain.
Tokenized US Treasury products have skyrocketed over 1,000% since early 2023, driven by high interest rates and demand for safe, high-yield assets.

Coinbase’s recent “State of Crypto” report highlighted concerns over the declining crypto talent in the US, stressing the importance of regulatory certainty. The survey of Fortune 500 companies, conducted by Coinbase, revealed a 14-point drop in developer share over the past five years, despite more companies moving on-chain. As of May 2024, only 26% of crypto developers are based in the US.

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Industry leaders now see the lack of skilled developers as a significant barrier to blockchain adoption. Executives indicated that without a robust talent pool, on-chain projects and broader blockchain initiatives would suffer. The survey found that 68% of small businesses are exploring crypto solutions, with 50% planning to hire candidates familiar with crypto for finance, legal, or IT roles in the next hiring cycle.

The survey also highlighted a surge in corporate interest in on-chain projects. Fortune 100 companies announced 39% more on-chain projects year-over-year, reaching a record high in the first quarter. Furthermore, 56% of Fortune 500 companies are currently engaging in on-chain projects, including consumer-facing payment applications.

Major financial institutions are leading this shift. The demand for spot Bitcoin ETFs has resulted in collective assets under management surpassing $63 billion. The SEC’s recent approval of spot Ethereum ETF applications further indicates traditional financial companies’ growing interest in the crypto industry.

The tokenization of government securities is also on the rise. High interest rates have increased demand for safe, high-yielding T-bills on-chain, with the value of tokenized US Treasury products rising over 1,000% since early 2023 to $1.29 billion.