# 2024 Crypto Startup Trends Report: Evolution and Emerging Patterns
According to the 2024 first-half Crypto Startup Trends Report released by Alliance.xyz, the blockchain industry continues to advance, capturing new trends and shifts across various sectors. Alliance evaluates over 3,000 crypto startup applications annually, providing a comprehensive view of ecosystem developments.
The report examines several aspects including blockchain preference, venture domains, founders’ backgrounds, and geographic distributions, revealing the current trajectory of crypto startups.
## Blockchain Preference: Ethereum Dominates, Solana Resurges
The analysis revealed that Ethereum remains the most favored platform for development among startups, with approximately two-thirds utilizing it. Following Ethereum, Solana and Bitcoin are also prominent choices. Notably, Solana, which saw a sharp decline post-FTX collapse, has rebounded to an 18% market share.
Within Ethereum, optimistic rollups are gaining traction. Around 59% of startups are leveraging rollup solutions like Optimism, Base, and Arbitrum, with Base experiencing rapid growth, hitting 28% within just one year.
## Venture Domains: Infrastructure and AI on the Rise
Product trends identified from applications show steady growth in Infrastructure, DeFi, Payment Solutions, and AI x Crypto, while the popularity of DAO and NFT products is waning.
The surge in AI-related crypto projects is particularly noteworthy, fueled by the advent of innovative technologies like ChatGPT. However, there are concerns about potential market overheating, making future trends essential to watch.
## Founders’ Backgrounds: Big Tech and Elite Academia
Currently, 30% of applicants have backgrounds in S&P 500 big tech companies, and 12% hail from universities ranked in the top 100 of the QS World University Rankings. However, since 2021, the proportion of founders from big tech has significantly decreased, likely due to regulatory issues and talent shifts towards other industries, particularly AI.
Interestingly, 39% of founders are solo entrepreneurs, and among startups with co-founders, half share equity equally.
## Geographic Distribution: Growth in Asia and Africa
Crypto startup founders are primarily based in Europe (31%), the United States and Canada (29%), and Asia (27%). However, the proportion from the US and Canada is declining, while Asia and Africa are experiencing rapid growth. This trend correlates with regulatory environments and increasing stablecoin adoption in developing regions.
## Trends and Keywords: Rise of Cryptographic Technology and SocialFi
Key trends identified in recent startup applications include Fully Homomorphic Encryption (FHE), Chain Abstraction, SocialFi, Prediction Markets, and Liquid Staking. These trends reflect advancements in privacy protection, usability improvements, and the spread of new financial products.
## Conclusion: Rapid Transformation in the Crypto Startup Ecosystem
The 2024 first-half report underscores the fast-paced evolution of the crypto ecosystem, showcasing diverse trends in blockchain preference and product types. While Ethereum-based solutions remain robust, Solana and Bitcoin are also gaining renewed attention. The growth potential in infrastructure and AI sectors is significant, and crypto adoption in Asia and Africa is accelerating.
The report provides a glimpse into how these trends might evolve in the coming years, offering valuable insights for industry stakeholders.
For further details, explore the full report below.
