Crypto startups in Africa and Asia hit record levels in early 2024.

Surpassing traditional leaders like the United States and Canada, these regions emerged as hotbeds of innovation amidst regulatory uncertainties. According to a detailed analysis by Alliance, a prominent blockchain startup accelerator and founder community, Europe claimed the top spot for new crypto ventures, capturing 31.4% of the market share. 

Following closely, Asia secured a substantial 26.8% share, reflecting the region's rapid adoption of digital assets amid regulatory ambiguities in the US.

Africa also experienced a notable rise in cryptocurrency startups, with its share increasing to 5.2%, slightly trailing behind Latin America. Conversely, Oceania, dominated by Australia and New Zealand, contributed a modest 1.8% to the total count of crypto startups. 

Alliance's insights are based on a comprehensive review of over 3,000 annual applications to its startup accelerator program, providing a robust understanding of global trends in blockchain entrepreneurship.

The regulatory uncertainties in the US have had profound implications, prompting self-custody service providers such as Phoenix Wallet and Wasabi Wallet to withdraw from the market. This regulatory environment has compelled many firms to seek expansion opportunities in more favorable jurisdictions. Critics argue that the US Securities and Exchange Commission's enforcement-driven regulatory approach has stifled innovation and deterred potential startups from entering the market.

Furthermore, Alliance's data underscores a shift in the demographic profile of startup founders, with a decline noted among those originating from Big Tech firms and top-tier universities. Solo founders accounted for approximately 39% of new startups, while teams comprising 2-5 members represented the majority at 51%, highlighting a trend towards smaller, agile teams driving innovation in the cryptocurrency sector.