Majority of 2022 Crypto Startups Thrive Despite Market Challenges

A recent Lattice Fund report reveals that over 80% of crypto startups that raised funds in 2022 remain active despite market downturns.

Of the 1,200 startups that secured $5 billion, 76% launched products on the mainnet, while 18.5% ceased operations.

Eigenlayer, an Ethereum re-staking protocol, stood out for its successful market strategy, although only 1.5% of startups achieved “Product Market Fit,” and just 12% received further funding.

The infrastructure and centralized finance (CeFi) sectors were the most successful, with 80% of CeFi and 78% of infrastructure projects launching viable products. In contrast, the gaming and metaverse sectors struggled with high failure rates, as highlighted by Lattice co-founder Regan Bozman.

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Ethereum attracted $1.4 billion across 314 projects, with only 18% failing long-term, while all 18 funded Bitcoin projects remain operational. Solana faced challenges, with 26% of its 87 projects failing due to external pressures like the FTX collapse.

Despite the overall resilience of 2022 startups, Lattice cautions that they face tougher conditions than their 2021 counterparts due to a stagnant market. Investors are shifting focus to emerging sectors like DePIN and AI, emphasizing the importance of identifying future trends for sustainable returns.

Alexander Zdravkov

Alexander has been working in the crypto industry for three years, during which time he has established himself through his active participation in monitoring market dynamics and technological innovations. His interest in cryptocurrencies and new technologies is not just a professional commitment, but a deep personal passion. He follows the news in the sector daily, analyzes trends, and is excited about every new step in the development of blockchain solutions. His enthusiasm drives him to continuously learn and share knowledge, as he sees the future in digital finance and its role in global transformation.