Crypto startups from 2022 still thriving, 80% still in operation

    80% of crypto startups from 2022 are still thriving despite market chaos.
    The continued involvement of venture capital (VC) to fund crypto startups can be key.

As a researcher who has been closely following the crypto market since its inception, I must admit that I was initially skeptical about the survival rate of 2022 crypto startups amidst the relentless chaos. However, the resilience and adaptability I’ve witnessed from these companies have left me genuinely impressed.


2022 saw numerous hurdles for the turbulent cryptocurrency market, but it’s fascinating to note that an astounding 80% of the new crypto ventures from that year remain active amidst the turmoil.

Despite a challenging bear market lowering token values and trade activity, the tenacity displayed by these startups underscores the robustness of the fundamental blockchain technology and the unwavering spirit of the innovators propelling this dynamic sector.

Weathering the storm

2022 brought a stormy season for the cryptocurrency market, marked by significant failures like Terra’s UST, liquidity issues, regulatory pressures that undermined investor trust. Yet, amidst these hurdles, numerous emerging startups persist in their journey. What fuels their survival in such tempestuous waters? The secret is their innovative spirit and adaptability.

Contrasting earlier phases of the cryptocurrency market, which were marked by wild speculation, the startups established in 2022 have demonstrated a more practical approach, primarily concentrating on applying blockchain technology to practical, real-world scenarios.

These encompass Decentralized Finance (DeFi) apps, Non-Fungible Token (NFT) platforms, and Web3 construction initiatives. By tackling practical issues and resolving genuine challenges, these ventures have successfully drawn in not just financial backers, but also a consistent user community.

They’re proving that there’s more to crypto than just market speculation.

Adaptability of startups

Flexibility has been crucial for these companies’ longevity. To illustrate, some startups that originally targeted volatile markets have shifted their focus towards more resilient approaches, like providing business-oriented blockchain solutions.

Many people are focusing on reducing expenses and streamlining their operations to stay afloat during this economic slump.

Various cryptocurrency companies have taken an active approach to address regulatory issues that are becoming increasingly stringent worldwide. Governments globally are intensifying their examination of the crypto market, pushing for greater openness and adherence to financial regulations.

Under the strain, some startups had to close down, but others viewed this situation as a chance to strengthen their bond with users and regulators by sticking to tighter regulations instead.

The role of venture capital

A key aspect that should not be disregarded is the persistent interest of Venture Capitalists (VCs) in the cryptocurrency industry. Even amidst market fluctuations, VCs have shown resilience by continuing to invest in promising crypto ventures, albeit with a greater sense of caution compared to the 2021 bull market surge.

In unfavorable market situations, this surge of investment has proven crucial for young companies to carry on developing and creating new ideas.

As one VC firm partner remarked,

In past periods, we’ve witnessed declines, but the extraordinary skillset and groundbreaking ideas within the cryptocurrency sector, particularly among this year’s group, have instilled faith in us to continue our investments. This is a strategic endeavor, and despite market downturns, the most promising projects will persist and flourish.

Looking forward

Despite the volatile nature of the cryptocurrency market, the fact that about 80% of startups from last year are still around indicates that the sector is maturing into a more robust and resilient one.

These businesses are building the groundwork for the upcoming era of blockchain technology, transitioning from mere speculation to real-world implementations with potential to redefine sectors and economies.

To summarize, the resilience shown by these startups is a promising indication for the future of the cryptocurrency sector. Amidst market turbulence, creativity thrives, and those who can adjust best are preparing for lasting prosperity.

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2024-10-02 16:40