Build business: An outlook on the Web3 industry during the downtrend

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By the end of May, the price of Bitcoin (BTC) had plunged 40%, Ether (ETH) had lost 50% of its value, and the entire cryptocurrency market had plunged below its trillion-dollar capitalization for the first time since January 2021. As we usher in a market trend Obviously bearish, it is necessary to focus on what the blockchain industry has always suggested: construction.

Bitcoin, Ether, and the broader decline of the cryptocurrency market are all associated with macroeconomic uncertainty. The uncertainty is caused by rising interest rates along with quantitative tightening, which leads to a sell-off in asset prices across the exchange and the cryptocurrency market. It is entirely possible that we will see a repeat of events such as the disintegration of the Terra ecosystem, the fallout from crypto lending service Celsius, and the liquidation losses of the $400 million hedge fund Three Arrows Capital.

2022 Market Crash vs Crypto Winter 2018
The crypto winter of 2018 came due to negative market sentiment and loss of confidence; However, the crypto winter in 2022 is a direct consequence of the overall economy. Decentralized Finance (DeFi) is down, stocks are down and global markets are down. This bear market is not insulated with cryptocurrencies alone, as the de-leveraging is happening simultaneously across multiple markets.

Ventures and private investors have pumped at least $30 billion into blockchain projects. A third of that amount went to gaming and virtual world projects to lay the foundations for the Web3 metaverse.

As we see a massive exodus of talent from Web2 projects, we also anticipate increased growth for Web3 brands, with many brands such as Yuga Labs, The Sandbox and RTFKT already partnering with retail giants, including Adidas, Nike, HSBC and Warner Bros. and others. Blockchain-powered decentralized applications (DApp) and DeFi have the potential to drive Web3 evolution in the future and seize control from a handful of centralized gatekeepers.

This indicates that the transition to Web3 is imminent and depends on a catalyst for reproduction. The crypto winter can undoubtedly be considered an important incentive, as it provides downtime for Web3 projects, as they can focus on scalability and sustainability.

RELATED: Hiring Top Crypto Talent Can Be Difficult, But It Doesn’t Have to be

Coded winter is not a time to hibernate but to continue building
During the crypto winter of 2018, we saw a significant rise in several disruptive projects, such as OpenSea and Uniswap. Despite the downward trend, projects leading the blockchain space have committed to building and enhancing their products.

These projects took years to be successful. In 2021, OpenSea generated $20 billion in sales of non-fungible tokens (NFTs), while Uniswap adoption grew exponentially, demonstrating the potential of a decentralized financial system. There are many other examples in DApps, DeFi, NFTs, and Web3 games.

The key to expanding the Web3 community is the utility
During the current crypto winter, there will likely be more venture capital available to fund new projects, so it may not only survive but thrive during the next big boom. This is the key to survival – utility. Projects that provide benefit succeed, while projects that are fundamentally flawed, exaggerated, and unprofitable end in failure. Therefore, coded winter separates the proverbial wheat from the chaff.

One of the best ways for crypto projects, whether DeFi, GameFi, or related NFT, to move from Web2 to Web3 is to consider the on-chain implications of housing operations. Not only this but accelerating business growth through cost reduction is essential. Payment gateways that charge inflated fees should be the first thing to check, and it certainly makes sense to consider a viable approach to the core practice of making a profit.

Related Topics: Governments, Enterprises, Games: Who Will Lead the Next Crypto Bull Race?

Crypto payment solutions that allow cryptocurrency on and off ramps help Web3 companies accelerate their business as the solution enables off-chain transactions, making the fees involved much cheaper than standard payment methods. It also facilitates improved transfers and revenue by enabling project users to buy and sell cryptocurrencies at competitive prices within the project platform. Crypto platforms looking to streamline their payment infrastructure should consider fully integrated ramps on and off ramps.

The demand for API solutions such as on and off platforms is steadily increasing as they help businesses settle various transactions for currencies and cryptocurrencies, reducing counterparty risks and costs, thus empowering businesses and their users. These platforms also provide price transparency with leading exchange rates with low conversion spreads, so that users know what they are and what they will be paying for.

Next winter, this is the kind of opportunity we should be looking for: projects that are ground-breaking and scalable infrastructure that will drive the next evolution of the digital asset ecosystem. as above

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