Infrastructure and CeFi lead success; Ethereum remains top ecosystem choice.
Despite the challenges faced by the cryptocurrency market in recent years, a significant number of crypto startups from 2022 have managed to survive and even thrive. According to data from Lattice Fund, over 80% of these startups are still active, showcasing resilience in a volatile environment.
Out of more than 1,200 crypto startups that raised funds in 2022, an impressive 76% have successfully launched a product. However, not all have managed to sustain their operations, with 18.5% shutting down. Only a small fraction, 1.5%, have achieved what is known as 'Product Market Fit,' indicating a strong alignment between their products and market demand. Additionally, 12% of these startups have secured further funding, which is crucial for growth and development.
The infrastructure and centralized finance (CeFi) sectors have emerged as the most successful among these startups. These areas have shown a higher rate of product launches and continued operations. In contrast, sectors like gaming and the metaverse have experienced higher failure rates, highlighting the challenges in these emerging fields.
Ethereum has been the preferred ecosystem for many of these startups, offering a robust platform for development. Bitcoin projects have also demonstrated high resilience, maintaining stability despite market fluctuations. On the other hand, Solana has faced significant challenges, with 26% of its projects failing, largely due to external factors impacting its ecosystem.
