According to data from more than 3,000 applications to AllianceDAO's crypto startup incubator, the first half of 2024 crypto market shows the rise of DeFi and payment applications, while Asia and Africa are becoming emerging startup hubs.
Current cryptocurrency market trends
Layer 1 chains
Ethereum continued to assert its dominance in the first half of 2024. Solana also showed a spectacular return after a period of decline in the second half of 2022, coinciding with the collapse of the FTX exchange. Bitcoin is experiencing a renaissance with the emergence of Ordinals, Runes and Layer 2 solutions.
L1 breakdown over time Ethereum Layer 2
In the Ethereum Layer 2 segment, Optimistic Rollup solutions have become increasingly popular over the past 3 years. In particular, Base accounts for more than a quarter of startup projects built on Ethereum Layer 2 in the first half of 2024.
L2 breakdown over time Product type 
Product breakdown in H1 2024
The most obvious change comes from the type of product. The number of startup projects focused on infrastructure, DeFi, payments, and AI incorporating cryptocurrency is on the rise, while NFTs tend to cool down. The rise of infrastructure and AI is consistent with the general trend, but the growth of DeFi and payments is surprising, as these two fields receive little public attention. Interestingly, DeFi and payments are also two rare application areas where cryptocurrencies have proven their practical value.
Geographic trends change
The first half of 2024 recorded the lowest rate of startup projects from the US and Canada, while Asia and Africa reached their highest level ever. The cause may come from legal instability in the US and the increase in the application of cryptocurrency in life in emerging markets.
North America, Europe and Asia continue to be the three leading regions, each accounting for about 1/3 of the total number of startup projects.
Geographic breakdown over time Founder background & Operating Model
The percentage of founders from large technology companies (S&P500) peaked in 2021 and is currently at 30%.
Big Tech Background in H1 2024
The proportion of founders graduating from the world's top universities (QS Top 100) also peaked in 2021.
Top school background in H1 2024
About 1 in 10 founders have founded a startup before.
Repeat founders Team size
More than half of startups are between 2 and 5 people.
Team size
Less than 40% of startups are founded by independent founders.
# of founders
Among startups with two or more co-founders, about half split shares equally and half split shares unevenly.
Equity split
Working model: Nearly three-quarters of startups operate entirely remotely.
Remote work
Data from AllianceDAO shows a comprehensive picture of the cryptocurrency market in the first half of 2024 with notable changes in application trends, geographical location and characteristics of founders. Will DeFi and payments continue to lead? Will Asia and Africa emerge as new cryptocurrency hubs? The answer will be available in the near future.
