Aug 8, 2023

A new report finds that Web3 developer activity is still on the rise in the second quarter, despite NFT and DeFi trading volume slipping from all-time highs.

Video transcript

A new report finds that web three developer activity is still on the rise in the second quarter despite NFT and D five trading volumes slipping from all time highs joining us now to discuss is alchemy product manager. Will Hennessey? Welcome to the show. Will. Good morning. Great to be here. Great to have you. Now, let's talk about this report. We're talking about web three developer activity growth. You know, we like I just mentioned NFTS are down def I trading is down, talk to us about what these developers are developing. Yeah, great question. The developer report is something we publish every quarter to help people see through the noise of market movement because yes, NFTS are down tokens are down, but developer activity is actually way up yet again. We continue to see developers building on alchemy and other platforms to build the next generation of web three apps. And this quarter was no exception. We hit some all time high records. We saw more smart contracts deployed than ever before. We saw account abstraction take off for the first time to try and solve some of the wallet user experience problems that we think are holding back the space. Um And we also saw a rise in D five users, even though volume is trending down, more people are interacting with DFI discorded. Any idea like who these people are? Because I feel like, I don't know that, you know, we, we're not hearing from them but you know, we don't see them around that much. Like it just, it has a wintery vibe. So like where, where are they, Like, what country are they in? Like what, what, what demographic are they? I'm just curious if you have any details about like who these people are. Yeah, it's a great question. One of the beauties of what three is that it's largely anonymous and pseudonymous, but some of the categories that we do see are of course your retail traders. We see a lot of bots trading on D I, of course, uh they arbi charging back and forth and we see other, you know, sophisticated actors, investment firms and hedge funds trading and it's a very global activity. So there are big hubs in the US in Asia, in Europe and really all over. All right. And lastly, Ethereum smart contract deployments rose 64% quarter over quarter compared to Q one and 277% year over year. When compared to Q two, talk to us about what this is signaling for Ethereum development. It tells us that the development is booming, right? We saw more smart contracts deployed than ever before on Ethereum and also on our layer two networks. And if you think about it, each smart contract represents a new application, a new token, a new NFT or a new user smart contract wallet. And so this means that more people are building than ever before. Um And there's been a lot of activity across the developer platform. One of which that we really saw take off this quarter is account abstraction, which is a new standard from the Ethereum Foundation and the community to help solve some of the wallet user experience problems that people are seeing in the space. All right, super quickly. We're talking about wallets and account abstraction. But what is the next use case? Like what is it, is it gaming? Is it wallets? Is it pfps like what does it actually mean for these people? For web three people who are consuming web three things? Yeah, I think, I think it's all of it. I wish I could help you predict the next one, but we're seeing builders build incredible stuff in every one of those categories that you mentioned. And ultimately, it's going to be up to the market to decide which one they like best and which will take off first. But one thing I can tell you for sure is it's going to be powered on alchemy and I think it's going to be using these new account abstraction models too. All right, will. Thanks very much for joining the show this morning. Thanks for having me. That was alchemy product manager. Will Hennessy.

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