The crypto bear market started in November 2021, recording the largest fall in the price of crypto assets. Almost a year after, the crypto market spiraled from a downward trend into crypto winter.
In the bear market, the price value of popular tokens such as Bitcoin fell drastically. For instance, Bitcoin fell from over $60,000 to slightly above $20,000. Since June 2022, Bitcoin has plunged beneath $20,000 for the first time since 2020.
Amidst this ongoing bearish phase, investors, holders, and exchange platforms are negatively affected. As investors are recording losses, exchange platforms are recording low transaction volumes.
However, experts say this period is a good time for web3 startups.
The year 2022 is significant in the cryptocurrency ecosystem. In the space of one year, the bear market took a greater drift. Amidst this bearish trend, inflation increased, recorded a high-interest rate, and now, tech giants are laying off their staff.
Similarly, crypto projects such as Terra Luna crashed in this period. These are some of the events that have dampened investors' confidence.
Therefore, it is interesting to know that with all these, experts consider this period the best for web3 startups. TheMoonCarl tweeted that the bear market is the best time to build your dream crypto project.
The major reason for considering the bear market a promising time for web3 startups is the 2018 event.
The comparison between the ongoing crypto winter and 2018 shows a similar pattern. In 2017, shortly before the downward trend began, there was a surge in Initial Coin Offerings (ICO). This surge led to several startups building their project and using crypto to fund their ideas.
Dissecting these projects that raised millions of dollars through ICOs showed that 90% failed in 6 months. Most of them didn't have complete roadmaps with shady whitepapers. The collapse of these startups signaled the beginning of the bearish phase.
Interestingly, a few of those projects with solid foundations are prominent web3 projects today. They include BNB, Polkadot, Avalanche, and Solana. Similarly, other projects launched in this period establish the impotent aspects of web3— NFTs, metaverse, and Blockchain gaming- thriving today.
Fast forward to 2022, many projects have been released to the market— just like in 2017/2018, most of them are crashing. However, experts say history is repeating itself.
Therefore, projects launched in this 2022 bear market and eventually surviving the crypto winter have promising futures.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information but will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.