Found these tiny cups filled with little grey ‘eggs’ growing in the mulch. They are smaller than a dime. Anyone know what they are?

role in the ecosystem. In this article, we will explore what Bird’s Nest Fungi are, how they live and thrive, and why they appear in places like mulch and damp garden beds.
1. What Those Tiny Cups in Your Mulch Actually Are
The tiny cups you see are indeed fungi, belonging to the family Nidulariaceae. These fungi are aptly named Bird’s Nest Fungi because of their resemblance to tiny bird nests filled with eggs. The cups, or peridia, are the fruiting bodies of the fungus and can measure between 0.