Web3 job market half-year report: Jobs surge after Bitcoin ETF approval, Singapore remains the region with the most job openings

Original title: H1 2024: Analysis of Global Web3 Job postings

Original author: JAY JO, YOON LEE, Tiger Research

Original translation: TechFlow

Key points

· Bitcoin ETF postings surge after approval:After the U.S. Securities and Exchange Commission (SEC) approved the Bitcoin ETF in January 2024, the number of global Web3 job postings rose sharply, up about 20% year-on-year in the first half of 2024.

· Increase in job postings in Asia:Job postings in Asia have risen, further narrowing the gap with Europe. Singapore, India, and Hong Kong have been particularly active in recruitment activities.

· 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's growing importance in the Web3 space.

1. Introduction

A company's job postings reflect 1) the execution of its strategy and 2) the demand of a specific industry, which can be used to predict future market activity. In this report, we analyze trends in global Web3 job postings to provide an overall insight into the Web3 market. This section of the report focuses on the state of Web3 job postings in the first half of 2024. The data is primarily sourced from Web3Jobs, a website that provides job listings in the Web3 space.

2. Trends in global Web3 job openings in the first half of 2024

Global Web3 job openings in the first half of 2024, source: Web3Jobs, Tiger Research

2.1. Changes in job openings since the approval of the Bitcoin ETF

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

However, the current job posting level is still lower than the peak in 2021/2022. This is mainly due to multiple factors such as market environment and technological innovation. 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 postings mainly comes from crypto ETF management companies and exchanges, rather than Web3 projects.

For example, job postings at crypto ETF management companies such as Grayscale increased to 28 in the first half of 2024, a four-fold increase from 7 in the first half of the year. Although job postings at crypto exchanges also increased, the change was not significant as these companies maintained stable demand.

Second, 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, attracting market attention. This trend indicates a lack of innovative progress that drives the industry forward. Given this short-term speculative trading culture, the actual demand for adoption in the Web3 industry is relatively limited.

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

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

First, the market environment may have deteriorated. Due to the pressure on the sale of Bitcoin by Mt. Gox and the German government, the decline in cryptocurrency prices, coupled with the subsequent decrease in trading volume, may have suppressed market sentiment.

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

Therefore, the decline in job postings may be a combination of the overall industry decline and seasonal factors. We need to keep a close eye on the job posting trends in the future to analyze this situation more accurately.

3. Web3 job openings by continent in the first half of 2024 (cumulative by month)

Cumulative Web3 job openings by continent in the first half of 2024, source: Web3Jobs, Tiger Research

Analyzing the job opening trends by region in the Web3 industry in the first half of 2024, the job openings are ranked as follows: 1) Remote work, 2) North America, 3) Asia, 4) Europe, 5) Middle East. It is worth noting that remote job openings 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 the interest and activity of the Web3 industry is shifting to Asia.

4. Trends in 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: Web3Jobs, Tiger Research

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

Singapore remains the region with the most hiring, up about 23% from the second half of 2023. This growth is due to Singapore's clear regulatory framework and crypto-friendly business environment, making it an attractive market.

Hong Kong opened its Web3 market in June 2023, and initially saw an increase in hiring as more Web3 companies entered the market. Many companies prepared to operate 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 by nearly 40% from the first half of the year, slipping to third place after India.

5. Web3 Job Posting Trends in Asia by Industry in H1 2024

In H1 2024, the number of job postings for cryptocurrency exchanges increased by approximately 45.6% compared to H2 2023. This increase is likely due to the rise in Bitcoin prices and the significant increase in cryptocurrency trading volumes, which has enhanced the profitability of the industry.

The hiring trends for most crypto exchanges in 2023 remained 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. Attorney’s Office filed charges against it in June 2023. In addition, Binance’s failed attempts to obtain licenses in multiple countries, including Abu Dhabi and the Netherlands, may also have led to a slight decline in its global hiring activities.

Interestingly, while OKX's hiring levels were similar to the second half of last year, Coinbase's 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 previous reports by Kaiko, the approval of the Bitcoin ETF led to increased trading volume and liquidity on regulated exchanges in the United States. Coinbase seems to have benefited from this, resulting in a significant increase in job openings.

6. Mainnet job posting trends in the first half of 2024

Web3 job postings in Asia by mainnet in the first half of 2024, source: Web3Jobs, Tiger Research

In the first half of 2024, the number of mainnet job postings in Asia decreased 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 H1 2024 job openings.

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 demand 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

Several notable hiring trends emerged in the first half of 2024. Story Protocol has attracted a lot of attention by announcing plans to launch a Layer 1 blockchain for the tokenization of intellectual property. They began actively hiring at the beginning of the year and made 16 hires in total.

While Story Protocol is based in the United States, recent news indicates that they are also hiring 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 NFT project Mocaverse and Web3 chess game Anichess, and is also actively hiring 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’s preference for short-term consumer trends, such as meme coin trading and airdrops, 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.

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