- Lattice Fund analysts state that 80% of the crypto startups that secured funds in 2022 still remain active.
- The analysts identify Ethereum’s EigenLayer as the standout performer of the 2022 startups.
- Ethereum remains the dominant layer-1 blockchain, with 314 projects receiving $1.4 billion in investments.
Analysts from Lattice Fund found that over 80% of crypto startups that received funding in 2022 are still operating, despite market turmoil. The report, released on October 1st, highlighted the Ethereum re-staking protocol EigenLayer as the top performer among the 2022-funded startups.
Of the 1,200+ startups that raised a combined $5 billion, 76% successfully launched products on the mainnet. Only 18.5% have shut down. However, only 1.5% of the projects achieved “Product Market Fit” (PMF), while 12% secured additional funding.
Ethereum Leads in Layer-1 Projects
Ethereum remains the leading layer-1 blockchain for new projects. 314 Ethereum-based projects received $1.4 billion in investments. 82% of these projects survived, while the remaining 18% failed. Ethereum’s EigenLayer leads the pack with its successful market strategy and a multibillion-dollar product launch in 2023.
Read also: Ethereum Devs Join EigenLayer, But Can They Stay Neutral?
Bitcoin-based projects demonstrated the highest resilience, with all 18 startups still active. But Solana projects, worth $350 million, faced significant challenges, driven by the FTX collapse and SOL’s price declines. While both Solana and Ethereum projects were more likely to secure follow-on funding, no projects based on Near, StarkNet, or Flow received further investment.
Infrastructure and CeFi Prove Most Successful
Lattice Fund’s report identified infrastructure and centralized finance (CeFi) as the most successful sectors for investment. CeFi led with 80% mainnet launches, while infrastructure projects followed with a 78% success rate. Gaming and metaverse proved to be overhyped, recording the highest failure rate.
Lattice Fund analysts noted that investor interest is shifting towards trending sectors like DePIN and AI. They stated, “Returns come not from chasing what is hot right now but from asking what will be hot in 1-2 years.”
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