According to a recent study conducted by talent advisory firm Durlston Partners, salaries in the decentralized finance (DeFi) sector have remained highly competitive despite the financial scandals and market volatility experienced in recent times. Skilled DeFi professionals continue to be in high demand, suggesting that their expertise is crucial for businesses seeking stability in an ever-changing landscape.
Consistent Base Salaries with a Positive Trend:
The study reveals that DeFi engineers’ base salaries remained steady throughout 2021 and 2022, with average quarterly salaries ranging from £100,000 to £125,000. However, there was a significant increase during the fourth quarter of 2022, reaching an average of £142,500. This upward trajectory indicates a positive trend for the DeFi sector in 2023.
Limited Pool of Talent Drives Generous Compensation:
The relatively small pool of DeFi developers and engineers contributes to the high salaries in the sector. Their specialized skill set is in great demand, and with limited professionals available, they are able to negotiate impressive remuneration packages. Even during the market downturn of 2022, DeFi engineers played a crucial role in maintaining business activity and were less susceptible to cost-cutting measures compared to other professions.
Stability in Salaries Amid Decreased Public Interest:
Interestingly, salaries in the DeFi sector have remained robust despite a decline in public interest in the technology. Google Trends data indicates a long-term decline in interest since July 2021. However, once individuals become part of the growing DeFi ecosystem, they tend to stay. The year 2023 is projected to be a period of relative stability for DeFi, with Total Value Locked (TVL) reaching $45.813 billion and remaining steady throughout much of the year, according to DeFiLlama.
Continued Demand for Skilled Professionals:
The DeFi sector experienced significant growth during the bull market of 2021-22 and has now become an integral part of the financial industry. As a result, the demand for skilled professionals remains robust. Meraj Bahram, the managing partner of Durlston Partners, predicts steady salary growth for the remainder of the year, stating that DeFi engineering jobs, such as software and DevOps engineers, have proven resilient in the face of volatility and uncertainty. As the crypto market recovers and companies regain stability, these engineers will become increasingly scarce and highly sought-after resources.
Conclusion:
Despite the challenges faced by the crypto and DeFi economies in recent years, the salaries of DeFi engineers have not been significantly impacted. The scarcity of skilled professionals and their integral role in maintaining business activity during market downturns have contributed to the continued competitiveness of DeFi salaries. As the DeFi sector enters a period of relative stability in 2023, the demand for these skilled professionals is expected to persist, driving further growth in compensation packages.
