AllianceDAO’s accelerator program, which receives approximately 3,000 applications each year, has uncovered interesting developments in the crypto startup world during the first six months of 2024. This large sample size provides exclusive information on the industry’s trends, specifically regarding popular blockchains, product emphasis, geographic spread, and founder profiles. Below are the five main trends influencing the crypto startups environment.
1. Dominant Chains and Layer 1 Ecosystems
According to AllianceDAO report, Ethereum continues to be the top ecosystem for new crypto startups. Solana is displaying indications of a robust comeback after encountering major obstacles post the FTX downfall in the second part of 2022.
On the other hand, Bitcoin is currently gaining renewed attention because of the increasing excitement surrounding Bitcoin ordinals, runes, and Layer 2 solutions.
2. The Rise of Ethereum Layer 2s
Optimistic rollups have gained substantial attention within the Ethereum Layer 2 ecosystem in recent years. During the initial six months of 2024, Base has stood out by accommodating more than a quarter of the crypto startups that are developing on Ethereum Layer 2s.
3. Shifting Product Focus: From NFTs to Infrastructure, DeFi, and AI
There is a shifting product landscape, characterized by a decrease in Non-Fungible Token (NFT) projects and an increase in infrastructure, Decentralized Finance (DeFi), payment solutions, and AI crypto projects.
This change indicates the industry is growing up, with real-world uses of DeFi and payment solutions becoming more popular, even though there is not much public excitement.
4. Crypto Startups Geographic Distribution
Startups originating from Asia and Africa are increasing significantly, with the highest percentage ever recorded, as opposed to those from the US and Canada, which are at their lowest point in history.
Regulatory uncertainty in the US and the rising use of crypto in emerging markets are probably causing this change. North America, Europe, and Asia continue to be the leading regions for cryptocurrency startups, with each region being responsible for around 25-33% of all new projects.
5. Founder Backgrounds and Team Dynamics
In 2021, the impact of founders from Big Tech backgrounds reached its highest point, but it still holds importance, as 30% of current founders possess this experience. Likewise, the percentage of entrepreneurs from prestigious universities reached its highest point in 2021. Roughly 10% of founders have prior experience in starting up companies, showing a good balance of experience and fresh perspectives.
When it comes to team composition, the majority of startups are made up of 2-5 individuals, a size that is seen as ideal for companies before they have found success in the market with their product. It is interesting to note that approximately 75% of startups are functioning entirely remotely, showcasing the flexibility and adaptability of the industry.
Conclusion
The patterns seen in the first half of 2024 provide a dynamic picture of the crypto startup scene. The growing influence of Ethereum, the renewed strength of Solana, the emergence of Layer 2 solutions, and the growing significance of infrastructure, DeFi, and AI emphasize a sector that is developing and advancing quickly. The future of crypto startups appears bright and promising with an increasing presence in developing markets and a mix of seasoned and new founders.
This article was originally published by a coingape.com . Read the Original article here. .
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