Major Crypto Activity Indicator Drops Below 11-Year Lows

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Vladislav Sopov

Based on some interesting activity indicators, we could be going through the most painful collapse in 10 years

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The monthly number of new crypto startups has dropped 98% since January 2022, job postings have also fallen. Is it really a big problem?

As another wave of regulatory attacks on crypto grabbed all the headlines, Fortune Crypto publishes research on the business development, HR, and fundraising challenges Web3 is going through in 2023.

Monthly number of new crypto startups down 98% since January 2022, job postings also plummet

Major U.S. financial centers including Las Vegas, Los Angeles, and Boston have seen over 50% declines in crypto job listings since peaking in 2022. Las Vegas is the worst victim as it has lost over 80% of its open positions for Web3 professionals.

But another trend looks even more dramatic: the monthly number of new cryptocurrency start-ups has fallen to levels not seen since 2012 following a 98% decline over the past year and a half.

Such observations were made by the Milk Road newsletter team, who studied the Collapse of the Crypto Bubble report by Leo Schwartz of Fortune Crypto.

Over the past five years, metrics of new start-ups opened monthly recorded two peaks: at the start of 2018, more than 120 companies were opened in the United States to advance the crypto sphere, while at the start of 2022, this indicator peaked at 80 openings per month. .

At the same time, the effect of the ongoing collapse has affected different regions of the United States differently. For example, in Washington DC, the number of job postings registered only a small drop of 5%. For New York, a reduction of 36% was recorded.

Is it really serious?

As reported by U.Today previously, some cryptocurrency heavyweights in the US continued to hire agents from various segments, even amidst the most painful bear season phase of Q4 2022.

At the same time, the largest US-based exchange, Coinbase, even canceled job offers for people ready to start working. For some of them, this resulted in the rejection of an F-1 USA visa.

Some commentators are convinced that the effects of the above two measures should not be overestimated. Alexei Zamiatin, the founder of Bitcoin DeFi startup Interlay, points out that the current recession is helping the segment filter out “tourists”:

It’s no longer easy money and only the determined stay to deliver

This recession was also marked by a notable layoff campaign: in February, Polygon Labs cut its workforce by 20%.

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