Despite Bitcoin’s record price run this year, salaries across the cryptocurrency sector are broadly declining, according to the 2024/2025 Crypto Compensation Report from venture capital firm Dragonfly.
The report, based on data from 85 companies and over 3,000 roles, signals a cooling period as the industry shifts from aggressive expansion to cost discipline and structure. Both cash pay and token incentives are shrinking across most roles and regions.
Key Findings on Compensation and Hiring:
- Overall Pay Decline: Average total compensation is down across most seniority levels. Entry-level positions experienced the steepest cuts, while mid-level roles saw flat growth.
- "Barbell Effect": The only significant salary increases were observed at the executive level, creating a "barbell effect" where gains are concentrated at the very top, while the majority of the workforce sees stagnation or cuts, particularly in product and engineering roles.
- Hiring Slowdown: The hiring process has slowed, now averaging 3.8 weeks and four interview rounds, with pay cited as the main reason for job offer declines.
- Workforce Composition: Engineering continues to dominate headcount (roughly two-thirds of roles), while non-technical positions remain limited.
Geographical Shifts and Work Structure:
- Western Europe remains the dominant labor hub, supported by venture funding and regulatory clarity.
- Asia’s share of hiring nearly doubled among surveyed companies (growing from 20% to over 40%).
- The U.S. still leads in cash pay, but international teams offer more significant equity and token incentives.
- The industry remains overwhelmingly remote, with over 54% of firms operating fully remotely.
The article also briefly noted recent industry challenges, including a major labor union (AFL-CIO) criticizing a proposed U.S. Senate crypto bill for lacking sufficient worker protections and allowing a "facade of regulation," as well as warnings about sophisticated North Korean hiring scams targeting crypto firms.
October 2025, Cryptoniteuae