If you check any crypto exchange right now, you will see red. Prices are decreasing, some coins are reaching the lower support levels while other are still ‘fighting’. However, the technology behind is not in red.
You may wonder what happens in Bear market with the blockchain technology?
Check out 5 major things that take place and helps the innovation process:
1. More and more decentralization
Decentralization is more than just a cool word used in the crypto world. Decentralization means power being divided to more people and not only in the hands of the founders, investors or whales. Reason why, DeFi is moving forward and the appetite for more and more decentralization is already visibly growing.
See here some projects that are showing these right now : Lido, Curve, Aave, Uniswap, Maker
2. Massive clean up of the market
Everybody knows that crypto ecosystem is not always consistent nor about honesty or hard work. There are tokens that do not serve a purpose and the technology behind it has no future. When bear market comes, these projects are caught up like thieves, and shows who is for real in the market. The good and knowledgeable ones will learn how to adapt and survive, while the rest will disappear.
This was more and more seen in the market this year. Worth mentioning would be Terra Luna, Celsius Network, FTX scandals.
3. Great ideas raising
When in Bull market, people tend to take decisions that can be fixed fast, sometimes workarounds, but that doesn’t mean necessarily that these are also the best moves. Bear market offers the time and energy to debate, brainstorm around ideas. Creating this type of environment, encourages everyone to seek for better solutions. This period is for solution seekers and teams like ETH, Solana and Cosmos are shining.
4. Team up and monopoly time
In order to secure a long term profit, merges are a good move. In order to secure a good technological development trayctoria, collaborations are great. In order to increase the team and the knowledge, funding is good.
When the market is not that certain, bold decisions are taken because everyone is set on survival mode, and this can guide to future success. Check out projects like Sui or Aptos.
5. More engaged and stronger DAOs
Bear market is not easy especially for those projects where people needed to be let go, and pockets are cut in half. But if you manage to stick with it, all the new solutions found, the tools developed and all great ideas built will help us be prepared for when the bull market will rise up again.
All in all, bear market or not, it depends where your focus is. If your focus is the product, the technology and the development curve, then bear market pushes into this direction.