One-third of job applicants in the crypto industry previously worked in the banking and financial sectors.
In a new report, crypto exchange Bitget analyzed recruitment trends in the blockchain industry, highlighting the migration of talent from the financial sector to the world of cryptocurrencies.
It said that higher salaries and prospects for innovation continue to attract professionals seeking new opportunities.
The reduction in revenues of investment banks by over 50% year-over-year has led to significant layoffs and further migration of talent.
Banks like Morgan Stanley, BlackRock, and Goldman Sachs have undergone reorganizations resulting in over 50,000 job cuts since 2020.
Additionally, five major banks collectively cut 20,000 jobs in 2023.
The shift towards technology-focused jobs among younger employees also contributed to the workforce erosion of banks.
The hi-tech industry, including companies like Coinbase, Amazon, Alphabet, and Microsoft, hired between 20 and 200 employees.
The crypto sector, in particular, experienced a hiring spree, with Coinbase attracting 197 talents and Amber Group hiring 250 employees, which persisted despite the FTX crisis in 2022, during which the sector saw over 2,000 job losses.
Crypto Industry Attracts Job Applicants With Higher Salaries
The report also highlighted the compensation differences between banks and the crypto industry.
Banks have reduced overall salaries due to remote working conditions and digitization, while the crypto industry offers higher salaries for remote employees.
“The data indicates a significant shift, with talents from the banking sector migrating towards cryptocurrency, drawn by the promise of higher salaries and innovation prospects,” Gracy Chen, Managing Director of Bitget, said.
“Such a shift may lead to increased mergers and acquisitions in both markets, impacting job reductions and transforming the labor market.”
In 2022, 36% of blockchain-related job roles were remote-based, twice the estimated worldwide average of 16%.
Junior engineers at crypto startups in London can expect starting wages of around $125,000 with incentives, compared to $87,810 offered by investment banks for similar positions.
The disparity is even more pronounced in the case of average salaries, with banks offering around $54,000 compared to approximately $115,667 in the crypto industry.
Overall, factors such as higher salaries, industry prestige, growth opportunities, and flexibility were identified as the main reasons for employee migration to the crypto industry.
Banks are gradually responding by planning to shift previously on-premise workers to remote positions, as revealed by 74% of CFOs surveyed by Deloitte.
Major Event that Drove Adoption in 2023
The report explored significant events in 2023 that drove the adoption of blockchain technology in traditional banking.
Specifically, it noted that major players such as HSBC, JPMorgan Chase, and Citi Group launched initiatives aimed at embracing decentralized technologies.
It also predicted that investments in blockchain retail banking will reach an estimated $40.4 billion by 2031, with banking spending on blockchain estimated to reach $22.5 billion between 2025 and 2026.
As reported, Bitget itself has seen significant growth in its employee and user base in 2023.
The company’s team grew from 1,100 to 1,500 employees, reflecting a substantial leap in its growth trajectory.
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