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.
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.
The Bank of Russia plans to monitor all cross-border cryptocurrency transactions over the next six months, involving 19 major banks such as Citibank, MTS Bank and Raiffeisenbank.
Binance has gained regulatory approval from Argentina’s National Securities Commission, bringing its total to 20 approvals worldwide.
According to Tether CEO Paolo Ardoino, USDT, the largest stablecoin by market capitalization, has a significant influence beyond the cryptocurrency sector, particularly in nations dealing with inflation and underdeveloped financial systems.
Following an extensive review of the reorganization strategy, the troubled cryptocurrency exchange FTX has announced plans to allocate $6 billion to affected users, specifically targeting those impacted by its 2022 collapse.