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  • 👉 Crypto developers are leaving smaller chains

👉 Crypto developers are leaving smaller chains

PLUS: U.S. regulators finally align on crypto oversight.

Crypto developers move on from smaller chains.

Crypto development is slowing down. But the slowdown isn’t affecting every network equally.

According to new data from GitHub, weekly commits and active accounts belonging to developers working across blockchain projects have tumbled by more than 50% over the last three months. The decline came after a wave of activity that reached its peak in late 2025, just before the market correction that struck the industry in October.

But as overall activity does decline, one trend is emerging.

More and more developers are focusing their efforts in and around Ethereum and Solana, while smaller networks have difficulty keeping teams and contributors.

Fewer experiments, more consolidation

The change is part of a wider transformation in the crypto ecosystem.

Previous cycles were characterized by the emergence of new Layer-1 chains and DeFi protocols through developer experimentation with novel concepts. But that period of frenetic growth appears to be tapering off.

With liquidity gravitating increasingly towards the biggest protocols and ecosystems, many teams are giving up on niche projects.

Meanwhile some developers have gravitated toward A.I.-related projects, which have pulled a huge share of engineering talent over the past year.

Token launches have also changed. Rather than building a complex application from the ground up, countless projects use no-code token launch platforms, limiting their need for large developer teams.

The core developer base remains steady

The industry still has a relatively steady pool of contributors, even as activity decreased.

These reports indicate there are approximately 11,800 developers actively building on blockchain across major ecosystems. But the overall number of contributors has fallen by about 17% in the past year, a decline even greater than during some past bear markets.

There are several reasons for the slowdown.

The collapse of NFT gaming and speculative DeFi projects also wiped out whole categories that once required significant development staff. Venture funding also cooled, leaving less money around for experimental projects.

Security concerns have also been a factor. Some companies are taking precautions against hiring or expanding development efforts after investigations into the infiltration of crypto teams by North Korean-linked hacking groups.

A smaller set of winners

The end result is a slimmed-down ecosystem.

Dominant protocols such as Ethereum and Solana still catch the greedy eyes of devoted developer communities, thereby achieving sustainable activity. In contrast, other smaller chain projects like the likes of Internet Computer, Polkadot, Starknet and Celo are also yet to attract new teams.

Even ecosystems that used to rely heavily on developer incentives are losing people. BNB Chain, for instance, is said to have lost over 8% of its developer base in one year.

Translation: The crypto industry might be moving past the era of hundreds of rival chains.

Instead, development is coalescing around a handful of platforms with established liquidity, infrastructure and user adoption.

POLL: Is crypto entering a “few chains dominate” era?

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📊 Market Watch

1️⃣ Crypto whales are stealthily accumulating tokenized gold

Gold-backed token XAUT is witnessing momentum amid investor demand for on-chain safe haven assets.

The number of wallets containing the token has now surpassed 35,000 and its market cap has exceeded $3.5 billion. The bulk of buying has come from large wallets building exposure to gold at a time when prices are close to record levels.

That trend appears to indicate that when crypto markets get rocky, some traders reinvent a time-tested simple hedge: gold, only tokenized and on the blockchain.

2️⃣ Bitcoin rallies while TRUMP memecoin crashes

Bitcoin has ascended back toward $70,000 range with buyers emerging from the latest market dip.

The TRUMP memecoin, on the other hand, is quite the different tale. The token has plummeted about 96% from its peak, a reminder that when the hype ends, it’s often very hard to retain momentum among assets driven by buzz.

The contrast is striking. As speculative tokens fail to maintain interest, more capital is being redeployed into larger, older crypto assets such as Bitcoin.

3️⃣ Ripple and Mastercard team up to push crypto payments

Ripple and Mastercard are bringing together 85 companies in a new effort to expand crypto-powered payments.

The initiative connects banks, exchanges, fintech startups, and blockchain developers through Mastercard’s Crypto Partner Program, aiming to make cross-border payments faster and cheaper using blockchain infrastructure.

The idea is simple: let businesses use crypto rails without abandoning traditional payment systems they already rely on.

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Regulation Watch

SEC, CFTC put crypto turf war behind them at last.

After reams' worth of regulatory confusion, the U.S. Securities and Exchange Commission (SEC) and the U.S. Commodity Futures Trading Commission (CFTC) have signed a formal agreement to work together on crypto oversight.

Under the new Memorandum of Understanding (MOU), both agencies are committed to data sharing, harmonizing definitions across topics, coordinating enforcement and collaborating in rule-making related to digital assets.

For crypto companies, this could translate to fewer overlapping probes and clearer guidance over how assets are classified.

Both regulators say the goal is straightforward: remove regulatory friction and ensure that the U.S. remains competitive as digital asset markets evolve.

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