Over 80% of 2022 Crypto Startups Remain Active Despite Market Turmoil: Report

A new report from venture capital firm Lattice Fund reveals that more than 80% of crypto startups that raised funds in 2022 are still operational, even in the face of significant market collapses.

Eigenlayer: A Success Story

Eigenlayer, an Ethereum re-staking protocol, stands out as one of the most successful ventures, delivering a multibillion-dollar product and executing a strong go-to-market strategy.

Ethereum Dominates

In terms of sectors, infrastructure and centralized finance (CeFi) startups led the way, with 80% of CeFi and 78% of infrastructure projects successfully launching on the mainnet. However, gaming and the metaverse sectors didn’t fare as well, with some of the highest failure rates among all categories.

Ethereum emerged as the favored layer-1 ecosystem, attracting $1.4 billion in investment across 314 projects, although 18% of those ultimately failed. Bitcoin-based startups, while fewer in number, proved to be highly resilient. All 18 Bitcoin-related projects that secured funding in 2022 are still active today.

Challenges Ahead for the 2022 Cohort

Despite the encouraging survival rates, Lattice analysts warn that the “2022 vintage” faces significant challenges. A flat market, coupled with a lack of retail participation and a crowded seed-stage space, makes it harder for startups to secure additional funding and achieve market fit.

Moreover, many investors have shifted their focus to newer sectors like decentralized physical infrastructure (DePIN) and artificial intelligence (AI), as well as emerging ecosystems such as Base and Monad.