Alliance Accelerator: 2024 Sees Shift to DeFi and Payments, DAO and NFT Trends Decline

Alliance latest report reveals a shift in crypto startup trends for H1 2024. DeFi, payments, and infrastructure now dominate the space, while DAO and NFT projects fade. Europe leads startup submissions as stablecoin adoption fuels growth.

In 2024, Alliance Accelerator, one of the leading programs supporting cryptocurrency startups, observed a major shift in the projects being submitted for its biannual program. The DAO (Decentralized Autonomous Organization) and NFT (Non-Fungible Token) trends that defined earlier years are now on the decline, with DeFi (Decentralized Finance), payment systems, and infrastructure emerging as the primary focus areas for new startups.

Alliance, which vets and supports up to 3,000 startups annually, shared its findings in a recent report. These insights are drawn from the startups applying to its accelerator program for the first half of 2024.

Key Trends in 2024: From DAO to DeFi

The startup landscape in crypto is evolving. In the latest round of applications, projects built on DeFi and payments outnumbered the previously popular DAO and NFT projects. Startups now focus more on creating robust payment systems, financial products, and scalable infrastructure rather than speculative NFTs or DAO governance models.

Among blockchain ecosystems, Ethereum remains dominant, with 66% of the startups choosing to build on its platform. Interestingly, Ethereum’s Layer 2 chains like Optimism, Arbitrum, and Base have grown in popularity, with 59% of Ethereum-based projects using these solutions for scaling. On the other hand, Polygon, once a leader in Layer 2 scaling, saw its share of new projects decline.

Another standout is Solana, accounting for 18% of startup projects. Despite its recovery after the collapse of FTX, Solana continues to attract developers. Bitcoin, however, only accounts for 5% of new projects, though efforts are being made to turn it into a programmable ecosystem similar to Ethereum.

Global Shift in Startup Origins

A significant development is the geographical shift in the origins of crypto startups. Alliance noted a surge in applications from Europe, which now accounts for 31% of all submissions, overtaking North America (29%) for the first time. Asia contributed 21% of startup applications.

This change in trends may be tied to regulatory challenges in the U.S., where the Securities and Exchange Commission (SEC) has taken aggressive action against crypto projects. The uncertainty caused by ongoing lawsuits and regulatory scrutiny has discouraged some American entrepreneurs from launching new projects, while Europe and Asia have become hotbeds for innovation.

Stablecoins and Payments Drive Adoption

One of the most important factors behind the rise of DeFi and payment solutions is the expansion of stablecoin usage. Stablecoins provide liquidity and enable cross-border transactions, which has opened doors for startups in emerging markets to access funding and tap into decentralized financial systems.

Startups from regions such as Africa and Latin America are making use of stablecoins to drive adoption and create real-world blockchain applications. Alliance noted an increase in mentions of stablecoins, real-world assets (RWA), and payment systems in the latest batch of applications.

DeFi and Infrastructure Lead Startup Themes

The themes dominating Alliance’s startup portfolio for the first half of 2024 include chain abstraction, prediction markets, liquid staking, and re-staking. A number of startups are also focusing on scalability solutions such as data availability, sidechains, and appchains—small, purpose-built blockchains designed for specific applications.

Despite Ethereum’s dominance, efforts to turn Bitcoin into a programmable ecosystem are picking up pace. In fact, Alliance reported the highest mindshare for Bitcoin since it began tracking data, with several new projects attempting to bring smart contract functionality and programmability to the Bitcoin blockchain.

Conclusion

The trends revealed by Alliance for the first half of 2024 indicate a maturing crypto ecosystem. While DAO and NFT projects fade from the spotlight, startups focusing on DeFi, payments, and infrastructure are gaining momentum. With Europe emerging as the leading region for new crypto projects, and stablecoin adoption driving real-world applications, the crypto landscape continues to evolve, offering exciting opportunities for global entrepreneurs.

Our creator. creates amazing NFT collections! 
Support the editors - Bitcoin_Man (ETH) / Bitcoin_Man (TON)

Pi Network (Guide)is a new digital currency developed by Stanford PhDs with over 55 million participants worldwide. To get your Pi, follow this link https://minepi.com/Tsybko and use my username (Tsybko) as the invite code.

Binance: Use this link to sign up and get $100 free and 10% off your first months Binance Futures fees (Terms and Conditions).

Bitget: Use this link Use the Rewards Center and win up to 5027 USDT!(Review)

Bybit: Use this link (all possible discounts on commissions and bonuses up to $30,030 included) If you register through the application, then at the time of registration simply enter in the reference: WB8XZ4 - (manual)