Industry Landscape Analysis
Layer 1 Blockchains
Ethereum maintains its dominance as the leading ecosystem. Meanwhile, Solana demonstrates a strong resurgence after hitting its lowest point in late 2022—a period coinciding with FTX’s collapse. Bitcoin experiences renewed interest driven by innovations like Ordinals, Runes, and Bitcoin Layer 2 solutions.
Ethereum Layer 2 Solutions
Among Ethereum’s Layer 2 scaling solutions (and sidechains), Optimistic rollups have garnered consistent attention over the past three years. Notably, Base has emerged as a preferred platform, attracting over 25% of startups building on Ethereum L2s in early 2024.
Startup Focus Areas
Crypto startups increasingly concentrate on:
- Infrastructure
- DeFi
- Payments
- AI x Crypto
While infrastructure and AI align with mainstream discourse, the growth of DeFi and payments may surprise observers—despite low public engagement, these sectors represent crypto’s proven product-market fit (PMF).
Note: Categories are fluid; e.g., a gaming-NFT hybrid startup would count as 0.5 weight per sector.
Geographic Shifts in Crypto Entrepreneurship
2024’s first half recorded two milestones:
- Lowest-ever proportion of startups from the US/Canada
- Highest-ever representation from Asia and Africa
This trend likely stems from:
- Regulatory uncertainties in North America
- Expanding real-world crypto adoption in emerging markets
👉 Explore how global regulations shape crypto innovation
Regional Distribution
- North America: 25–33%
- Europe: Comparable share
- Asia: Matching proportion
Founder Demographics & Backgrounds
Professional Origins
30% of founders hail from "Big Tech" (S&P 500 tech firms), down from 2021’s peak.
Education
Founders from top-100 QS-ranked universities also peaked in 2021.
Experience
10% are serial entrepreneurs with prior startup ventures.
Startup Team Dynamics
Size
50%+ operate with 2–5 members—the ideal pre-PMF team size.
Structure
- <40% solo-founded
- 50% of multi-founder teams split equity equally
Work Models
75% adopt fully remote operations.
FAQs
Q: Why is Base gaining traction among L2 builders?
A: Its developer-friendly tools and Coinbase integration lower entry barriers for startups.
Q: What drives crypto adoption in emerging markets?
A: Solutions for remittances, inflation hedging, and financial inclusion outperform speculative uses.
Q: Are small teams more effective in early-stage crypto?
A: Yes—agility accelerates iteration toward PMF before scaling.
👉 Discover how top crypto teams build remotely
Data sourced from AllianceDAO’s accelerator program (3,000+ annual applications).