Crypto's Barbell Pay Gap: Executives Soar, Workers Stagnate

The crypto industry is experiencing a widespread contraction in compensation as companies normalize pay structures amid a shift toward cost discipline and regulatory clarity, according to the Dragonfly 2024/2025 Crypto Compensation Report. The survey of 85 firms and over 3,000 roles reveals a 18% year-over-year decline in average salaries to $144,000 and a 75% drop in token grants. This trend spans nearly all roles and regions, with entry-level and mid-level positions bearing the brunt of the cuts, while executive compensation rose by 37% to approximately $197,000. The report highlights a "barbell effect," where top executives and senior technical leaders capture significant rewards, while the broader workforce faces stagnating or reduced pay.

Technical roles remain the backbone of the crypto workforce, accounting for 67% of headcount, with engineering and crypto engineering dominating hiring. Non-technical functions, including product, design, and marketing, represent just 10% of roles. Entry-level hiring is particularly scarce, comprising only 10% of total positions, which the report notes constrains diversity and talent pipelines. Despite the overall decline, equity offers saw slight increases, with 51% of teams separating tokens and equity in compensation packages-a shift reflecting maturing practices compared to 45% in 2023.

Geographic trends reveal a narrowing pay gap between the U.S. and international teams. While the U.S. continues to lead in cash compensation, overseas firms often offer larger token and equity packages. Asia's hiring share doubled to over 40% year-over-year, driven by diversification of talent pools, while Western Europe remains a dominant hub due to regulatory clarity and venture capital access. The U.S. leads in cash pay, but international teams, particularly in engineering, sometimes match or exceed U.S. compensation due to higher equity allocations.

Remote work has become the industry standard, with 54% of firms operating fully remote and 94% planning to maintain their current policies. The shift reflects the sector's global and digitally native nature, with U.S. companies favoring remote-first models and international teams leaning on hybrid setups. Hiring cycles have also lengthened, averaging 3.8 weeks and four interview rounds per role, with 68% of offers accepted-primarily due to pay-linked declines.

The report underscores a broader industry maturation, as firms prioritize structured compensation over rapid expansion. Founders and technical leaders benefit from this transition, while the workforce adjusts to a more cautious economic environment. The data suggests a long-term focus on rewarding technical excellence, maintaining operational flexibility, and scaling globally. However, the concentration of gains at the executive level raises questions about talent retention and equity distribution.

Sources:

[1] Decrypt (https://decrypt.co/343763/crypto-salaries-down-despite-bitcoins-historic-rally)

[2] Yahoo Finance (https://finance.yahoo.com/news/great-crypto-pay-cut-still-052301900.html)

[3] Bloomberg Law (https://news.bloomberglaw.com/daily-labor-report/us-crypto-firms-paying-300-000-wages-leave-foreign-peers-behind)