Blockchain Market Size, Trends, and Developer Salaries
Let’s explore the blockchain sector, including the DeFi market size, the developers behind it, the technologies they’re utilizing, and, among other aspects, the salaries within this domain.
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Blockchain serves as the foundation of the Web3 concept. It is a decentralized system for storing information in a block chain, where each new block contains data about the previous one, ensuring the database's immutability and transparency. We've broken down this complex technology in simple terms in our article “How to Explain Blockchain to a Child.”
However, today's focus is on blockchain as a market that attracts billions in investments and yields billions in revenue.
Consultancy firm Grand View Research conducted a study on the global blockchain market from 2017 to 2023, releasing a report on its trends and future outlook.
Here is a concise extract from this 140-page document.
General Trends for 2023-2030
- The blockchain market was valued at $17.5 billion as of December 2023.
- The projected Compound Annual Growth Rate (CAGR) up to 2030 is 86.2%. This means the market could be valued at $1.4 trillion in just six years.
- Market growth is expected to accelerate due to the tokenization of real-world assets (RWA), the application of AI, and the widespread adoption of the NFT standard.
- The market is currently dominated by the Blockchain-as-a-Service (BaaS) segment, which accounts for 44% of the industry's revenue. Amazon is a notable example in this sector, offering services for the creation and scaling of open-source corporate blockchains based on Ethereum.
- The main focus of blockchain end-users will be in the business sector, including finance, healthcare, IT, telecommunications, as well as retail and e-commerce.
- Up until 2023, the Web3 market was predominantly occupied by large enterprises. Small and medium-sized businesses comprised only 33% of decentralized technologies, mainly due to scaling challenges in securing additional financing and payment processing.
- Consequently, an increase in mergers and acquisitions (M&A) is anticipated in the near future to consolidate positions and facilitate global expansion.
Potential Growth of the Blockchain Market Source: grandviewresearch.com
Key Players in the Blockchain Market
The landscape of blockchain technology is predominantly shaped by major corporations, holding the majority of investments and earnings in this sector.
Leading entities include:
- IBM Corporation
- Microsoft Corporation
- Linux Foundation
- Galaxy Digital Holdings Ltd
- Chain Inc.
- Deloitte
- Circle Internet Financial Limited
- Global Arena Holding, Inc. (GAHI)
- Ripple
- Marathon Digital Holdings Inc.
These corporations are pivotal in driving the market's growth, leveraging mass cryptocurrency adoption, mining, and the technological backing for sophisticated equipment.
Notably, over a third of blockchain's application revenue is concentrated in North America, with Silicon Valley being the hub for these key players.
North America accounts for 37% of all blockchain revenue. Source: grandviewresearch.com
Blockchain Developers
The expansion of the blockchain market has spiked the demand for skilled professionals. Data reveals that 27% of global programmers are currently engaged with distributed ledger technology projects. Another 28% show keen interest in blockchain platforms, DeFi applications, and relevant programming languages.
The U.S. and India are the primary contributors of Web3 developers, followed closely by talents from East Asia, including South Korea, Japan, and Taiwan, who typically boast 6 to 10 years of experience in decentralized networks. Less than 5% were at the forefront of blockchain's inception.
Developer interests distribution in the blockchain sector. Source: grandviewresearch.com
In 2023, 54% of developers were engaged in projects built on Ethereum, positioning it as the most popular platform. Binance Smart Chain and Solana ranked second and third, respectively. The most widely used programming languages included:
- Solidity (EVM);
- Java (IOTA и NEO);
- C++ (Stellar, Ripple, Bitcoin);
- JavaScript (game development);
- Python (open-source apps).
Grand View Research predicts that within a few years, half of all IT professionals will be catering to the blockchain market's needs.
Blockchain Developer Salaries
Blockchain developers significantly outearn their counterparts in traditional software development. The salaries of Web3 developers are determined by two main factors: location and hands-on experience.
Although experience is a crucial factor in any field, the impact of an employee's geographical location on their compensation is a contemporary innovation.
According to data from the smart contract platform Tokenized, salary ranges are as follows:
- European developers earn between €144,000 and €180,000 annually.
- In the USA and Canada, salaries range from $216,000 to $240,000 per year.
- Indian developers make between $84,000 and $108,000 annually.
Chinese programmers earn around $50,000 per year, the lowest in comparison.
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