Web3 job market semi-annual report: Jobs surge after Bitcoin ETF approval

Original author: Jay Jo Yoon Lee

Original translation: TechFlow

Summary of key points

• Job postings surge after Bitcoin ETF approval: After the U.S. Securities and Exchange Commission (SEC) approved the Bitcoin ETF in January 2024, the number of global Web3 job postings increased significantly, increasing by about 20% year-on-year in the first half of 2024.

• Job postings increase in Asia: Job postings in Asia increased, further closing the gap with Europe. Singapore, India and Hong Kong were particularly active in hiring activity.

• Mainnet Job Postings in Asia: Although mainnet job postings in Asia have decreased since 2023, more and more global mainnets are expanding their recruitment in the region, highlighting Asia鈥檚 growing importance in the Web3 space.

1 Introduction

A companys job openings reflect 1) the execution of the companys strategy and 2) the needs of a specific industry, which can be used to predict future market activity. In this report, we analyze the trends of global Web3 job openings to provide an overall insight into the Web3 market. This section of the report focuses on the status of Web3 job openings in the first half of 2024. The data mainly comes from Web3 Jobs , a website that provides job listings in the Web3 field.

2. Global Web3 job posting trends in the first half of 2024

Global Web3 job openings in the first half of 2024, source: Web3 Jobs, Tiger Research

2.1. Changes in job postings since Bitcoin ETF approval

After the U.S. Securities and Exchange Commission (SEC) approved the Bitcoin spot ETF in January 2024, job postings in the global Web3 market began to increase significantly. As market recovery expectations rise, hiring activities have become relatively active. In the first half of 2024, the number of job postings increased by about 20% year-on-year, reflecting a significant increase in overall industry expectations compared to last year.

However, the current level of job openings is still lower than the peak in 2021/2022. This is mainly due to multiple factors such as market environment, technological innovation, etc. First, the approval of Bitcoin ETF has a greater impact on the crypto trading and investment field than on the broader Web3 ecosystem. The increase in job openings mainly comes from crypto ETF management companies and exchanges, rather than Web3 projects.

For example, job postings at crypto ETF managers such as Grayscale increased to 28 in the first half of 2024, a fourfold increase from 7 in the first half of the year. While job postings at crypto exchanges also increased, the change was modest as these companies maintained steady demand.

Secondly, the recent market recovery is driven by speculation rather than technological innovation. The market currently prefers speculative transactions such as meme coins rather than new technological trends. As we mentioned in our previous report , multiple meme coin projects with a market value of over $1 billion have emerged and attracted market attention. This trend shows that there is a lack of innovative progress to drive the industry forward. Given this short-term speculative trading culture, the actual adoption demand in the Web3 industry is relatively limited.

2.2. June marks a return to a downward trend in job postings

We have observed a sharp decline in the number of job postings in the Web3 industry since June 2024. This can be interpreted from two perspectives.

First, market conditions may have deteriorated. Falling cryptocurrency prices and the resulting drop in trading volumes, as Mt. Gox and the German government put pressure on bitcoin sales, may have dampened market sentiment.

Secondly, it may also be a seasonal factor. Many companies usually temporarily suspend recruitment activities during the summer vacation season in June.

Therefore, the decline in job postings may be caused by a combination of an overall industry downturn and seasonal factors. We need to pay close attention to future job posting trends to analyze this situation more accurately.

3. Web3 job openings in each continent in the first half of 2024 (accumulated monthly)

Cumulative Web3 job openings by continent in the first half of 2024, source: Web3 Jobs, Tiger Research

Analyzing the job posting trends by region in the Web3 industry in the first half of 2024, the job postings are ranked as follows: 1) Remote work, 2) North America, 3) Asia, 4) Europe, 5) Middle East. It is worth noting that remote job postings are beginning to exceed those in North America. This change indicates that remote work is rapidly gaining popularity in the Web3 industry, reflecting its region-independent nature and indicating that work arrangements are becoming more flexible.

Another notable change is the widening gap in the number of job openings between the Asian and European markets. Starting in the first half of 2023, Asia began to surpass Europe, and the gap continued to widen in the first half of 2024. As of the first half of 2024, Asia accounted for about 20% of the total job openings, while Europe accounted for about 15%. This trend clearly shows that interest and activity in the Web3 industry is shifting towards Asia.

4. Web3 job openings in Asia by industry in the first half of 2024

Web3 job openings in Asia by industry in the first half of 2024, source: Web3 Jobs, Tiger Research

As of the first half of 2024, Web3 job openings in the Asian market are most active in the following regions: 1) Singapore, 2) India, 3) Hong Kong.

Singapore remains the region with the highest number of hires, up approximately 23% compared to the second half of 2023. This growth is due to Singapore鈥檚 clear regulatory framework and cryptocurrency-friendly business environment, making it an attractive market.

Hong Kong opened its Web3 market in June 2023, and initially, hiring increased as more Web3 companies entered the market. Many companies prepared to do business in Hong Kong by obtaining crypto licenses. However, the situation began to reverse when the Hong Kong Securities and Futures Commission (SFC) imposed a ban on mainland services for license applicants. In response, global exchanges such as Binance, OKX, and HTX withdrew their license applications, resulting in a decline in overall hiring. As a result, hiring in the Hong Kong market fell nearly 40% from the first half of the year, slipping to third place after India.

5. Web3 job openings in Asia by industry in the first half of 2024

In the first half of 2024, the number of job postings at cryptocurrency exchanges increased by approximately 45.6% compared to the second half of 2023. This increase may be due to the rise in Bitcoin prices and the significant increase in cryptocurrency trading volume, which has enhanced the profitability of the industry.

Hiring trends for most crypto exchanges in 2023 remain consistent, with the main exchanges being 1) OKX and 2) Binance. Previously, Binance had more active hiring activities, but this trend changed after the U.S. Attorneys Office filed charges against it in June 2023. In addition, Binances failed attempts to obtain licenses in multiple countries such as Abu Dhabi and the Netherlands may also have led to a slight decline in its global hiring activities.

Interestingly, while OKXs hiring levels were similar to the second half of last year, Coinbases hiring increased significantly, from 39 in the second half of last year to 209 in the first half of this year. This surge may be related to the approval of the Bitcoin ETF by the U.S. Securities and Exchange Commission (SEC). According to Kaikos previous report , the approval of the Bitcoin ETF led to an increase in trading volume and liquidity on regulated exchanges in the United States. Coinbase seems to have benefited from this, resulting in a significant increase in recruitment positions.

6. Mainnet recruitment trends in the first half of 2024

Web3 job openings in Asia by mainnet in the first half of 2024, source: Web3 Jobs, Tiger Research

In the first half of 2024, mainnet hiring in Asia was down slightly compared to the second half of last year. However, it is worth noting that more mainnets have increased their hiring activity in Asia compared to last year, with Scroll.io targeting the region for 14 of its 20 job openings in the first half of 2024.

Australia-based Web3 gaming mainnet Immutable has the highest absolute number of hires in Asia. Other major non-Asian mainnets such as Ripple, Aptos, and Avalanche also continue to show hiring needs in Asia. Although the absolute number of hires is not high, it is clear that mainnet participants recognize the business opportunities and potential of the Asian market.

7. Other notable job posting trends

Source: Story Protocol

There have been several notable hiring trends in the first half of 2024. Story Protocol attracted a lot of attention when it announced plans to launch a Layer 1 blockchain for the tokenization of intellectual property. They began actively hiring at the beginning of the year, making 16 hires in total.

Although Story Protocol is headquartered in the United States, recent news indicates that they are also recruiting a head of Korean operations. This indicates that Story Protocol plans to expand into the Korean market.

Source: Mocaverse

Animoca Brands is also hiring like crazy. After hiring only four people in the second half of 2023, they increased to nearly 40 people in the first half of 2024. Animoca Brands is hiring for multiple projects, including the NFT project Mocaverse and the Web3 chess game Anichess, and is also actively recruiting talents for its investment business.

8. Conclusion

In the first half of 2024, the number of job openings in the Web3 market increased compared to the same period last year, but it is still lower than the recruitment levels in 2021 and 2022. As the industry develops and the market grows, the increase in job openings is a natural trend. However, despite the large scale of growth in the Web3 industry, the number of job openings has not met industry expectations.

This discrepancy is due in part to the Web3 industry鈥檚 preference for short-term consumer trends, such as meme coin trading and airdrop campaigns, rather than cultivating a sustainable ecosystem. To achieve sustainable growth, the industry needs a fundamental shift in discussion and the emergence of new technology trends. If this change fails to occur by the second half of 2024, the risk of stagnant industry growth will increase.

This article is sourced from the internet: Web3 job market semi-annual report: Jobs surge after Bitcoin ETF approval

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