At AllianceDAO, we review thousands of applications each year for our crypto startup accelerator program. This provides us with a unique, data-rich perspective into emerging trends across the blockchain industry. By analyzing project foundations, product categories, and team structures, we gain insight into the direction of the broader ecosystem.
Layer 1 Blockchain Trends
Ethereum continues to be the dominant ecosystem for new projects. However, Solana has made a notable recovery since its low point in late 2022—a period coinciding with the collapse of FTX. In addition, Bitcoin is experiencing a revival, fueled by growing interest in ordinals, runes, and Bitcoin Layer 2 solutions.
The Evolution of Ethereum Layer 2 Networks
Among Ethereum Layer 2 solutions and sidechains, Optimistic rollups have maintained significant attention over the past three years. A striking trend in the first half of 2024 is that more than a quarter of all Ethereum L2-based startups chose to build on Base.
We are also seeing increasing startup activity in infrastructure, decentralized finance (DeFi), payments, and AI-related crypto applications. While infrastructure and AI align with popular narratives, the growth in DeFi and payments may come as a surprise. These two sectors are among the few that have demonstrated clear product-market fit in the crypto space.
It's worth noting that these categories sometimes overlap. For instance, a startup operating in both gaming and NFTs would be counted partially in each category.
Geographic Distribution of Crypto Startups
The first half of 2024 marked a historic low in the proportion of crypto startups based in the United States and Canada. At the same time, Asia and Africa reached all-time highs in representation. This shift may be attributed to regulatory uncertainty in the U.S. and the increasing real-world adoption of cryptocurrencies in emerging markets.
Overall, North America, Europe, and Asia remain the top three regions for crypto startups, each accounting for roughly one-quarter to one-third of the total.
Founder Backgrounds
Big Tech Experience
The proportion of founders with backgrounds in "Big Tech"—defined here as tech companies in the S&P 500—peaked in 2021 and currently stands at 30%. While the exact definition may vary, the trend over time is clear.
Top University Education
Similarly, the percentage of founders graduating from "top universities" (those ranked in the top 100 per QS World University Rankings) also peaked in 2021.
Serial Founders
Approximately one in ten founders has previously started a company.
Team Structure and Organization
Team Size
More than half of all crypto startups consist of between two and five team members. We believe this is the optimal size for pre-product-market fit startups.
Solo Founders
Fewer than 40% of startups are founded by a single individual. Various studies suggest that 20–30% of unicorn companies were started by solo founders.
Equity Splits
Among startups with two or more co-founders, about half have chosen to split equity equally.
Remote Work
Nearly three-quarters of crypto startups operate on a fully remote basis.
Frequently Asked Questions
What is driving Bitcoin’s recent revival?
Growing interest in Bitcoin-based innovations such as ordinals, runes, and Layer 2 solutions has contributed significantly to its resurgence. These technologies expand Bitcoin’s functionality beyond simple transactions.
Why are more startups choosing Base over other L2s?
Base offers a combination of technical robustness and growing ecosystem support, making it an attractive option for developers looking to build scalable Ethereum-compatible applications. Explore more strategies
How does regulatory uncertainty in the U.S. affect startup formation?
Unclear regulations can discourage startups from operating in certain jurisdictions, leading founders to incorporate in more crypto-friendly regions, both in terms of legislation and market access.
Is remote work the norm in crypto startups?
Yes, remote work is extremely common. Almost 75% of crypto startups are fully remote, which allows them to access global talent and operate with greater flexibility.
What are the most promising sectors in crypto right now?
While AI and infrastructure receive much attention, DeFi and payments continue to show strong product-market fit and steady user adoption.
How important is team size in early-stage crypto startups?
Team size can be critical. Small teams of 2–5 people are often more agile and efficient in the early stages, especially before achieving product-market fit.