When there is a bearish trend in the blockchain space, many individuals immediately think the worst would happen. Even while this isn’t always the case, some people think of it as a period during which projects come to a standstill or are shelved altogether. If there is one thing that can be said about this time period, it is that blockchain initiatives are continuing to develop and grow.
The Price Decline Is Not the Only Affect of the Bear Market
The concept of a “bear market” is sometimes misunderstood due to the name “bear market.” It’s a common phrase to hear when pricing or entire markets are struggling against the odds. As a consequence of this, the values of assets tend to decrease over longer periods of time, and people’s interest in the industry tends to wane. That is what happens with hypothetical assets, and the majority of people think of cryptocurrencies as being speculative more than anything else. On the other hand, this way of thinking causes individuals to miss the significantly larger picture.
It is not rare for the price of cryptocurrencies to drop by 10%, and this can happen at any time. Many investors and speculators are left wondering what will happen once the markets have dropped by as much as fifty percent or more over a period of several months. Even while a bear market might be beneficial since it separates the wheat from the chaff, there is always sunshine after the storm. Any project that is not pulling its weight will either be dismissed about or will go off the radar in some other way. The business environment is cutthroat, and the level of competition has never been higher.
The price of bitcoin, Ether, or DOGE is what determines whether or not investors and speculators are participating in a bull market or a bear market. When it comes to dealing with less well-known currencies or shorter enterprises, these problems are brought to the forefront more frequently. During a bear market, it will be difficult to maintain ownership of any asset that has poor mobility or for which there are no imminent plans. Because investors vote with their wallets, it is not impossible to imagine an asset dump of more than 90 percent of its value.
Having said that, a great number of blockchain projects are going to flourish even during a bad market. Although their price performance might not be particularly outstanding, that is not the most important measure to take into consideration. Whatever the state of the industry, it is still quite important to establish the general activity level of developers. There is never a bad time to build more, and those who are responsible for constructing the next generation of equipment do not place much importance on cost considerations.
The True Value Lies In The Developers
The total level of producer involvement is the most important factor determining the success of blockchain projects. Confirming interest in elevating the ecosystem to the next level by possessing more toward being to a project’s code demonstrates enthusiasm for doing so. Electric Capital compiled a report that was released in January 2022 that assessed the overall developer activity across top-tier blockchain projects. The research was made public in January. In spite of the fact that one would anticipate a decline in activity as a result of the bear market, the report reveals something quite different.
Every month, more than 18,000 engineers contribute their work to open-source crypto and Web3 projects. That is an average statistic; it does not represent the overall number of coders interested in cryptocurrencies and blockchain technology at this time. In 2021, there was an increase of more than 34,000 new developers that contributed code; this represented the most year-over-year growth. Given that the second half of 2021 has been highly pessimistic for all projects in terms of price, the increased development interest has proven to be extremely valuable.
Getting a little further in-depth with the statistics. The following items stand out in particular:
In comparison, Bitcoin only has about 700 open-source researchers on a regular basis, while Ethereum has thousands.
During the year 2021, more than one out of every five new Web3 developers joined the Ethereum ecosystem.
Despite the bad market, about half of all full-time Web3 developers joined the fray in 2021.
When one looks outside Bitcoin and Ethereum, one can see that Polkadot, Solana, NEAR Protocol, BNB Chain, Cosmos, and Avalanche are all experiencing extremely high levels of activity.
The association between developer activity and market circumstances is maybe the most fascinating insight that can be gained from this. Even though more developers contribute code when conditions are bullish, the overall number of contributions does not decrease when situations are bearish. Even a reduction in pricing of eighty percent will not stop researchers from investigating open-source blockchain and Web3 projects and supporting to their development.
Despite the bear market, gaming communities continue to show opportunity.
When considering the numerous Web3 games that are already available for purchase, the significance of creation becomes apparent. A game needs to offer players a compelling reason to check it out and continue devoting their time to it. The incorporation of play-to-earn mechanics is just one component of the equation because, in today’s world, this is considered “the norm.” If the gameplay is not compelling and there is no consistent growth, players will quit a game rather fast.
Forums have the potential to make Web3 games more robust, and Apeiron has successfully connected with its backers. The first “god game” built on the blockchain blends simulation and roguelike features with card-based combat and a focus on player choice. The players take on the role of Godlings, with the ability to perform miracles, advance their civilization, and even destroy entire planets in order to start over. In addition to that, there is the Galactic Progression, the PvE World Exploration, and the PvP Improvement. Players have endless opportunities to start over and improve their stats, in addition to the vast number of activities available to them.
The expansion of the Apeiron community can be attributed, in part, to the game’s many different gaming modes; however, it also benefits from the game’s interactive story development. When the game is finally released in the fourth quarter of 2022, there is enormous potential that can be unlocked by combining mythology with well-known brands and franchises. During the bad market, the Apeiron team continued to build, much like the teams behind other notable blockchain construction projects.
Their game is now very close to being ready for production, in contrast to other games which have fallen behind schedule and may no longer be able to catch up. In addition, the determination to carry on with construction means that investors will continue to be dedicated to the development, which enables future expansion for the Web3 industry as a whole.
Putting Up Structures Is Priceless
Any blockchain project that has value over the long run will continue to have value if it can attract new contributors. Even though prices are subject to ups and downs, codes will continue to support the initiatives in which they have a strong belief. It should come as no surprise that well-established projects like Bitcoin and Ethereum are still able to recruit talented individuals from all around the world. In addition, other businesses that have a long-term perspective, such as BNB Chain and Polkadot, continue to observe a high commitment from their developers.
Whether the market is bearish or bullish, the prices of crypto assets do not reflect the true value of the enterprises that use blockchain technology. Instead, the viability of blockchain projects can be determined by measuring developer activity, despite the fact that this statistic is one that a lot of people choose to ignore.