The bear market is a breeding ground for blockchain projects

When cryptocurrency markets turn bearish, many automatically assume the worst. Some even consider it a time when projects stagnate or are abandoned, although that is not necessarily the case. If anything, it is a time where blockchain projects continue to build and thrive, provided one looks at the crucial metrics.

The bear market is not just about prices

The term “bear market” is a very misleading concept. It is often uttered when prices or entire markets are facing an uphill battle. As a result, asset values ​​decline over long periods of time and people tend to lose interest in the industry. That is the fate of speculative assets, and most consider cryptocurrencies to be speculative more than anything else. But this way of thinking causes them to lose sight of the much bigger picture.

A 10% price drop for cryptocurrencies is not uncommon and can occur at any time. Markets can even lose 50% or more over a multi-month period, leaving many investors and speculators wondering what’s next. There’s always sunshine after the rain, although a bear market will help sift the wheat from the chaff. Any project that doesn’t pull its weight will either be forgotten or disappear from the radar in other ways. It’s a dog-eat-dog industry, and the competition has never been fiercer.

For investors and speculators, the price of bitcoin, Ether or DOGE is the difference between a bull market and a bear market. These concerns become even more pronounced when dealing with smaller projects or more obscure currencies. Any asset with low liquidity or no immediate plans will struggle to survive during the bear market. Investors are talking with their wallets and seeing a token dump of over 90% is not out of the question.

That said, many blockchain projects will thrive during a bear market. Their price performance may not be impressive, but that’s not the primary metric to look at. Regardless of market conditions, it is still crucial to determine overall developer activity. It’s always time to build and build, and prices aren’t that relevant to those creating next-generation infrastructure.

Developers are the real value

The success of blockchain projects is based on overall developer activity. Allowing more people to contribute to a project’s code confirms the interest in taking the ecosystem to the next level. A report by Electric Capital, published in January 2022, analyzed the overall developer activity across top-level blockchain projects. While one might expect slowing activity due to the bear market, the report indicates something else entirely.

Over 18,000 developers commit code to open source crypto and Web3 projects every month. That’s the average number, not the total number of coders looking at crypto and blockchain today. Over 34,000 new developers committed code in 2021, marking the largest year-over-year increase. Considering how H2 2021 has been very bearish for all projects in the price department, the growing developer interest is proving invaluable.

Dives a little deeper into the statistics. the following things stand out:

• Ethereum has thousands of monthly open source developers, while Bitcoin has about 700.
• More than one in five new Web3 developers joined the Ethereum ecosystem in 2021.
• Almost half of full-time Web3 developers joined the fray in 2021 despite the bear market.
• Looking beyond Bitcoin and Ethereum, there is tremendous activity across Polkadot, Solana, NEAR Protocol, BNB Chain, Cosmos and Avalanche.

Perhaps the most interesting takeaway is the correlation between developer activity and market conditions. As expected, more developers are using code during bullish conditions, but the numbers don’t drop off during a bear market. Even an 80% drop in price will not deter developers from exploring and contributing to open source blockchain and Web3 projects.

Gambling community shows potential during the bear market

The importance of development comes into play when working with the many Web3 games that come onto the market. Players need a solid reason to try out a game and stay committed to it. Integrating play-to-earn mechanics is only one part of that equation, as it is the “norm” today. Players will give a game quite quickly without engaging gameplay and constant progression.

Community can make Web3 games stronger, and Apeiron has struck a chord with its supporters. The first god game on the blockchain combines simulation with roguelike elements and card combat. Players are gods who perform miracles, elevate their civilization and have the power to wipe out entire planets to start over. Also, there is PvE World Exploration, PvP Progression and Galactic Progression. There’s a lot to do, and players can always wipe the slate clean and get stronger.

The Apeiron community continues to grow because of these different game modes, but also benefits from the interactive story. Integrating mythology with famous brands and franchises opens up huge potential when the game is released in Q4 2022. Like popular blockchain infrastructure projects, the Apeiron team continued to build during the bear market.

Their game is now almost ready for production, while other games are delayed and may not be able to catch up. In addition, the commitment to continue building ensures that investors remain committed to the project, enabling future growth for the wider Web3 industry.

The building is priceless

Any blockchain project with a long-term value will retain its value by attracting more developers. Although prices may rise and fall, codes will stand by the projects they strongly believe in. It’s no surprise that the established projects in Bitcoin and Ethereum continue to attract talent far and wide. Moreover, other businesses with a long-term vision, such as BNB Chain and Polkadot, continue to see strong developer engagement.

Bear market or bull market, the prices of cryptoassets do not reflect the real value of blockchain projects. Instead, developer activity is where the viability of blockchain projects can be measured, although it’s a metric that many often overlook.

The importance of developers cannot be underestimated, whether one engages in building blockchain infrastructure, establishing a new Web3 game, or anything else related to decentralized technology.