Asia and Africa Show Notable Growth in Crypto Startups in 2024

• Alliance DAO reported that Asia and Africa showed a rise in crypto-based startups.
• Ethereum is the largest L1 that dominates the crypto ecosystem.

Crypto accelerator and DAO community published an X article bringing on chain insights for H1 2024. The reports showed that the eastern continents, Asia and Africa have shown increased numbers of crypto-based startups. Over the past months, these regions have also seen advancements in Regulations and new launches within the crypto sector. 

According to the report, Europe surpassed the superpower US to become the leading region in terms of number of startups. The central continent now accounts for 31.4% of the total crypto-based startups. Meanwhile, the US currently hosts 29%. On the other hand, Asia has witnessed immense growth and is the third-largest region with 26.8% of startup establishments. Africa has shown a rise reaching 5.2% this year. 

Notably, in 2021, the US was the leading region with nearly half of the startups being US-based. However, over the last few years, other nations have also exhibited emerging markets in cryptocurrency. Moreover, the authors, Qiao Wang and “Chloexyg” stated that the reduction in number is due to regulatory uncertainties in the US. 

Additionally, the eastern countries attract entrepreneurs due to the emerging markets in their regions. Moreover, Latin America currently hosts 5.8% of the global crypto-startups. Oceania holds a much smaller percentage of the establishments. 

How Did the Crypto-Based Startups Fair in H1 2024? 

The Alliance DAO stated that they are ‘able to derive unique insights into where the industry is heading’ because of the sample size and their agnostic approach to various factors. Relatedly, they presented several factors in terms of on-chain data, products of crypto-startups, and founder backgrounds. 

In H1 2024, startups that build DeFi, payments, AI x crypto, and infra have shown a rise. Most of these companies use NFT as expenses. Notably, in terms of L1s Ethereum ensures its dominance within the crypto space. Meanwhile, Solana has shown a surge in activity indicating a comeback. 

Several of the regions that have shown a rise witnessed new advancements in the sector. Hong Kong, for instance, recently made an announcement regarding licensing of particular crypto exchanges to provide services in the capital city. 

Finally, the overall crypto market has begun to show recovery signs after the recent market crash, according to CMC data. 

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