Crypto Startups Survive Bear Market: 80% Nonetheless Lively in 2024

• Lattice Fund analysts state that 80% of the crypto startups that secured funds in 2022 nonetheless stay lively.
• The analysts determine Ethereum’s EigenLayer because the standout performer of the 2022 startups.
• Ethereum stays the dominant layer-1 blockchain, with 314 tasks receiving $1.4 billion in investments.

Analysts from Lattice Fund discovered that over 80% of crypto startups that acquired funding in 2022 are nonetheless working, regardless of market turmoil. The report, launched on October 1st, highlighted the Ethereum re-staking protocol EigenLayer as the highest performer among the many 2022-funded startups.

Of the 1,200+ startups that raised a mixed $5 billion, 76% efficiently launched merchandise on the mainnet. Solely 18.5% have shut down. Nonetheless, just one.5% of the tasks achieved “Product Market Match” (PMF), whereas 12% secured extra funding.

Ethereum Leads in Layer-1 Tasks

Ethereum stays the main layer-1 blockchain for brand spanking new tasks. 314 Ethereum-based tasks acquired $1.4 billion in investments. 82% of those tasks survived, whereas the remaining 18% failed. Ethereum’s EigenLayer leads the pack with its profitable market technique and a multibillion-dollar product launch in 2023.

Learn additionally: Ethereum Devs Be a part of EigenLayer, However Can They Keep Impartial?

Bitcoin-based tasks demonstrated the best resilience, with all 18 startups nonetheless lively. However Solana tasks, price $350 million, confronted important challenges, pushed by the FTX collapse and SOL’s value declines. Whereas each Solana and Ethereum tasks have been extra more likely to safe follow-on funding, no tasks based mostly on Close to, StarkNet, or Move acquired additional funding.

Infrastructure and CeFi Show Most Profitable

Lattice Fund’s report recognized infrastructure and centralized finance (CeFi) as probably the most profitable sectors for funding. CeFi led with 80% mainnet launches, whereas infrastructure tasks adopted with a 78% success fee. Gaming and metaverse proved to be overhyped, recording the best failure fee.

Lattice Fund analysts famous that investor curiosity is shifting in the direction of trending sectors like DePIN and AI. They said, “Returns come not from chasing what’s sizzling proper now however from asking what will probably be sizzling in 1-2 years.”