Key Trends Shaping Crypto Startups in 2024

Summary:
AllianceDAO’s accelerator program, which receives around 3,000 applications annually, has revealed key trends in the crypto startup world for the first half of 2024. The primary trends include:

1. Dominant Chains and Layer 1 Ecosystems: Ethereum remains the leading ecosystem for new startups, while Solana shows signs of recovery post-FTX collapse. Bitcoin gains renewed interest due to ordinals, runes, and Layer 2 solutions.
2. Rise of Ethereum Layer 2s: Optimistic rollups gain traction, with Base supporting over a quarter of startups on Ethereum Layer 2s.
3. Shifting Product Focus: Decrease in NFT projects, with a rise in infrastructure, DeFi, payment solutions, and AI crypto projects, marking industry maturation.
4. Geographic Distribution: Increased startup activity from Asia and Africa, with North America, Europe, and Asia each contributing 25-33% of new projects. Regulatory uncertainties in the US and crypto adoption in emerging markets drive this trend.
5. Founder Backgrounds and Team Dynamics: Big Tech and prestigious university backgrounds remain significant. Most startups have 2-5 member teams and about 75% operate entirely remotely.
   The first half of 2024 highlights a dynamic and rapidly advancing crypto startup scene, with a promising future driven by innovation and market expansion.