In a significant shift, the share of cryptocurrency startups in Africa and Asia has reached unprecedented levels in the first half of 2024, challenging the dominance of the United States and Canada. This trend is highlighted by a recent report from Alliance, a prominent blockchain startup accelerator.
According to Alliance’s July 10th report, Europe now leads in new cryptocurrency startups with a 31.4% share, surpassing the US and Canada. Asia follows closely in third place with a 26.8% share. The increase in startups in these regions is attributed to regulatory uncertainties in the US and a growing adoption of digital assets in emerging markets.
Africa also experienced a notable rise, capturing a 5.2% share, just below Latin America’s share. Oceania, mainly comprising Australia and New Zealand, accounted for 1.8% of the total crypto startups in the first half of the year.
Alliance gathered this data from the 3,000 annual applications to its startup accelerator program, providing a comprehensive overview of industry trends. The significant sample size allowed Alliance to gain unique insights into the evolving landscape of the cryptocurrency sector.
Regulatory issues in the US have compelled several companies, including self-custody service providers Phoenix Wallet and Wasabi Wallet, to exit the market. Many firms are now expanding their operations internationally, avoiding the strict regulatory environment enforced by the US Securities and Exchange Commission (SEC).
Furthermore, the number of startup founders originating from Big Tech firms has decreased by over 15 percentage points since 2021. There has also been a decline in founders coming from top 100-ranked universities.
Interestingly, 39% of startups were launched by solo founders, while 51% consisted of teams with 2-5 members. This shift indicates a more diverse and distributed approach to founding new cryptocurrency ventures.
In conclusion, the regulatory landscape in the US is driving a geographical shift in the cryptocurrency startup ecosystem, with Asia and Africa emerging as significant new players in the market.
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