We analyzed the best cryptocurrency startups of 2024 and their performance.
In 2023, the cryptocurrency market saw a notable turnaround, with market capitalization increasing by 109%. This surge was largely driven in the first and fourth quarters of the year, driven by the approval of Bitcoin ETFs and expectations of the upcoming Bitcoin halving.
Meanwhile, the global economic environment characterized by moderate GDP growth and moderate inflation rates has further created a positive atmosphere for cryptocurrency investment.
Web3 cryptocurrency startup attracted a lot of attention by attracting 1,173 investments worth $9 billion. Among these, infrastructure projects accounted for the largest share of investment, demonstrating solid development in the sector.
Moreover, the revival of gaming activity and the rebound of the non-fungible token (NFT) market in the fourth quarter of 2023 were other major highlights.
In particular, the NFT market showed a notable recovery, with trading volume reaching $1.7 billion in December 2023. Bitcoin NFTs have emerged as a significant growth driver in this sector.
Decentralized finance (defi) also saw strong growth, with total value locked (TVL) increasing by 38.9% year-on-year by the end of 2023. This growth is due to the increase in Liquid Staking Tokens (LST) and LSTfi.
Against this backdrop, let’s take a closer look and take a closer look at a few cryptocurrency startup companies that are making a mark in the industry.
List of cryptocurrency startups taking off in 2024
alchemy
Alchemy has become one of the biggest blockchain startups in 2024.
In February 2022, Alchemy announced a $200 million equity investment, boosting its valuation to a whopping $10.2 billion.
This investment round was led by Lightspeed Venture Partners and Silver Lake, with significant contributions from high-profile investors such as a16z, Coatue, Addition, Pantera, and DFJ.
Founded in 2017 and headquartered in San Francisco, Alchemy’s platform has partnerships with leading organizations such as OpenSea and Adobe.
According to Joe Lau, Alchemy’s CTO and co-founder, the project’s mission is to “make web3 accessible to everyone” by helping innovative developers bring their blockchain-based ideas to life.
Like many new cryptocurrency startups, Alchemy faces the challenge of maintaining scale in the evolving web3 environment despite its rapid growth.
chain analysis
Chainalysis, a New York-based blockchain data platform company, is one of the largest cryptocurrency startups as of 2024.
The company reached a valuation of $8.6 billion following a $170 million funding round. The funding round, led by Singapore sovereign wealth fund GIC, included contributions from high-profile investors such as Blackstone and Bank of New York Mellon.
Founded in 2014, Chainalytic specializes in blockchain data analytics and plays a key role in the transformation of finance into cryptocurrencies.
Its services are in high demand for risk management and business intelligence and serve an expanding market that includes exchanges, DeFi platforms and financial institutions entering the cryptocurrency space.
Growing awareness of the importance of blockchain data and growing demand for its services amid growing cryptocurrency adoption and regulatory scrutiny have accelerated Chainalytic’s growth.
fire block
Fireblocks, an institutional cryptocurrency custody service provider, could also be ranked as one of the best blockchain startups of 2024.
Fireblocks raised $550 million in a Series E funding round in January 2022, bringing its total funding to more than $1 billion. This round of financing raises the company’s value to $8 billion.
Founded in 2018, Fireblocks provides an all-in-one platform that includes a variety of crypto services such as custody, DeFi access, staking, and tokenization.
The company has $45 billion in assets under management and has safely transferred over $2 trillion in cryptocurrency assets through its platform.
Clients include Bank of New York Mellon, Revolut, and Galaxy Digital, and investors include big names like Sequoia Capital.
According to the company, Fireblocks works with more than 1,300 institutional clients, demonstrating its ability to serve a variety of clients with diverse needs in the digital asset space.
Miss Teen Lab
Another standout among 2024 cryptocurrency startups is Mysten Labs.
Founded in 2021, Mysten Labs, a Sui layer-1 blockchain developer, has emerged as a key player in the blockchain space with a focus on improving the security, safety, and usability of web3 applications.
Mysten Labs secured $300 million in Series B funding in 2022, bringing its valuation to $2 billion. The investment was led by Andreessen Horowitz, representing a strong vote of confidence in one of the most reputable venture capital firms in the technology and cryptocurrency space.
The startup’s mission is to address critical risks in areas such as private keys, smart contract bugs, and the complexities of multi-chain operations.
Mysten Labs aims to address technical barriers to mass adoption of blockchain technology by developing institutional-grade developer tools, audit services, and decentralized identity protocols.
Mysten Labs’ strength is its focus on security and usability, which are critical to the broad adoption and growth of web3 technologies.
The downside is that Mysten Labs faces the challenge of keeping pace with technological advancements and changing web3 and blockchain trends.
Go ahead and try it
Aleo, known for contributing to web3 security and helping users develop privacy-centric applications, is one of the cryptocurrency startups making noteworthy progress in 2024.
Founded in 2019 and headquartered in Reno, Nevada, Aleo secured significant Series B funding of $200 million in February 2022, bringing its valuation to $1.45 billion. Investors backing Aleo include well-known companies such as SoftBank Vision Fund, Andreessen Horowitz, and Tiger Global Management.
The Aleo development team focuses on protecting user data through zero-knowledge encryption and distributed systems. It is used in various areas of the cryptocurrency world, including DeFi, AI, blockchain gaming, and other sectors where privacy plays an important role.
Aleo’s strengths include strong investor support, focus on the important and growing web3 security space, and the ease of use it provides for developers to create personal applications.
On the other hand, as with many new technologies, there can be challenges associated with widespread adoption and the complexity of integrating new security technologies into existing systems.
These features position Aleo as a major player among the best blockchain startups of 2024.
Evolution and future challenges
The future of the cryptocurrency market and blockchain startups is both exciting and challenging.
The sector is expected to advance beyond 2024, driven by technological advancements, increased regulatory clarity, and greater mainstream adoption.
The growth seen in areas such as DeFi, web3 applications, and NFTs is likely to accelerate as new innovations and applications emerge.
However, this growth comes with challenges, including scalability issues, cybersecurity threats, and the need for improved user experience.
Blockchain startups like Alchemy, Chainalytic, Fireblocks, Mysten Labs, and Aleo, which have already demonstrated strong potential and growth, can lead the way in addressing these challenges.
Additionally, as the cryptocurrency market matures, the sustainability and ethical considerations of blockchain technology may become more emphasized, laying the foundation for new cryptocurrency startups.
Overall, the path ahead for cryptocurrency and blockchain is filled with opportunities for growth, innovation, and the potential to have a significant impact on a variety of fields from finance to digital art and beyond.