Solana surpassed Ethereum as the leading ecosystem for new developers in 2024, ending its eight-year reign in attracting new talent, according to a report by Electric Wallet.
Besides its implications for the two blockchains, it has a far-reaching impact on the general cryptocurrency market.
Solana vs. Ethereum: How new developers made the shift
Solana experienced an 83% surge of new developers in 2024, totaling 7,625, outpacing Ethereum’s 6,456. Despite this significant development, Ethereum is still in the lead in the overall developer base with 6,244 monthly active developers across its ecosystem.
However, this may not last considering a 17% decline in monthly active developer count, signifying potential challenges like increased competition from alternative blockchains offering faster transaction speeds and lower fees (at the cost of being less decentralized) that appeal to developers seeking efficient environments for building decentralized applications (dApps) and emerging layer-2 solutions, which have fragmented developer focus.
Furthermore, as more new developers join Solana, it will become more decentralized.
Additionally, the report highlights another important development in geographic contribution with Asia emerging as a key contributor. India alone accounts for 17% of new crypto developers, signaling increased developer activity beyond traditional hubs like North America and Europe.
In 2015, North America accounted for 80% of crypto developers. However, today, they have dropped to 24%, while Asia has seen an increase to 32%, pointing to the increasing importance of regions like India as emerging centers of innovation.
How will this shift impact the market?
Since new talented developers are flocking to Solana, it could lead to increased innovation and competition through novel applications and services that could reshape user experiences across both ecosystems.
Fresh talent brings innovative ideas and diverse expertise, which can lead to the creation of new applications, improved infrastructure, and better user experiences. As developers experiment with and deploy projects on Solana, the ecosystem could see a surge in new dApps, gaming platforms, and DeFi services, attracting more users and investors.
Despite Ethereum still leading in total developer activity and code contributions with approximately 65% of all new code written, it must remain vigilant about Solana’s growing influence and that of other emerging platforms.
Price implications of new developers flooding Solana
SOL/ETF price development (Source: TradingView)
This year, the price of Solana has experienced significant growth, driven by the network’s increasing popularity as a platform for launching new projects like meme coins. Throughout 2024, Solana price has increased by 245% year-to-year compared to Ethereum’s 80% rise over the same period.
The growth in development on Solana is likely to drive investment and user interest, further solidifying its market position. These advancements may also spur Ethereum to enhance its platform and maintain its edge in the face of rising competition. At the same time, this rivalry could benefit the entire blockchain industry, accelerating the pace of adoption.
