Crypto Firms Walk a Tightrope: Cutting Costs While Courting Talent

Crypto salaries have declined across the industry in 2024 and 2025, despite Bitcoin reaching record highs, as firms prioritize cost discipline and structured compensation over rapid expansion. According to the 2024/2025 Crypto Compensation Report by venture capital firm Dragonfly, average total compensation fell across most seniority levels, with entry-level and mid-level roles experiencing the steepest declines or stagnation. The report, based on data from 85 companies and over 3,000 roles, noted a "barbell effect" where executive pay saw modest increases while the majority of employees faced reduced cash and token incentives. This shift reflects a broader industry move toward stability and long-term risk management following years of aggressive hiring and speculative incentives .

The compensation pullback is part of a broader normalization in the crypto sector. Hiring has slowed, with an average of 3.8 weeks and four interview rounds per role, and offer acceptance rates hovering at 68%, often linked to pay concerns. Engineering roles, which constitute roughly two-thirds of the workforce, saw widespread adjustments, while non-technical roles in design and marketing remained limited. Remote work dominates the landscape, with 54% of surveyed firms operating fully remote, compared to 2% fully in-office. This trend has influenced geographic pay structures, as companies reduce reliance on traditional office-based compensation models .

Geographic patterns highlight a shifting labor market. Western Europe remains a dominant hub, driven by venture funding, regulatory clarity, and institutional infrastructure. The U.S. continues to lead in cash pay but lags in token incentives, which are more prevalent in international teams. Meanwhile, Asia's hiring share nearly doubled, rising from 20% to over 40% of surveyed companies, reflecting diversification of talent pools and growing institutional adoption. Countries like Vietnam, India, and South Korea have emerged as key contributors to the region's crypto growth, with APAC trading volume surging 69% year-over-year to $2.36 trillion .

Regulatory and market dynamics are reshaping compensation strategies. As crypto markets stabilize and frameworks mature, firms are prioritizing structured pay over high-risk incentives. The U.S. regulatory environment, particularly the Securities and Exchange Commission's aggressive stance, has limited token-based compensation in domestic firms. In contrast, international companies are more likely to issue equity and token grants, aligning with evolving compliance landscapes. This divergence underscores the sector's adaptation to both macroeconomic trends and localized regulatory pressures .

The report also highlights a growing divide between executive and staff compensation. While senior leaders saw slight pay increases, the broader workforce faced a contraction in rewards. This disparity mirrors broader industry challenges, including post-2022 bear market cutbacks and the aftermath of high-profile collapses like FTX. Despite a recent market recovery, companies remain cautious, balancing cost management with the need to attract talent in a competitive global market. The data suggests that crypto compensation is aligning with traditional sectors, albeit with a lag in maturity and standardization .

[1] Crypto Compensation Report 2024/2025 (https://cryptonews.net/news/finance/31770144/)

[2] Crypto Compensation Report 2024/2025 (https://decrypt.co/343763/crypto-salaries-down-despite-bitcoins-historic-rally)

[3] Asia's Crypto Market Growth (https://crypto.news/asia-leads-global-crypto-market-in-2025-outpacing-u-s-and-europe/)

[4] U.S. Crypto Pay Trends (https://www.investmentnews.com/ria-news/how-much-can-you-make-working-for-a-crypto-firm/251148)