Less number of active projects due to bear market trend

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Avatar for bala41288
4 months ago

I'm not sure if it is only me or even others feel the same. The number of active projects in the crypto ecosystem has reduced. Some projects have gone to a silent mode and some projects have slowed down a little bit due to less funding. I believe this is very common during a bear market trend. In the last few years, I have seen this several times and when the bull market starts coming, there will be many active people from nowhere trying to stay very active on the chain.

Sometimes I get the same fever too where I think about slowing down a little bit during the bear market. But usually for people who are growing, a bear market is the best time to accumulate more tokens for a cheap price. After the bull market starts and when all the cryptocurrencies start pumping, we might start thinking that we should have bought when we had the chance. Today just because the price of Hive is very low, we get more Hive as rewards from our post-payouts. This is one of the great things and that's also one of the reasons why people say that bear markets are the best time to accumulate more Hive.


Active projects during the bear market

There are still a few projects that are very active even during the bear market. Those projects are not affected based on the market condition. These projects are the ones that benefit to the maximum during the bull market. The main reason is that they would have seen the cycle of bull and bear. The trend can keep changing but if they identify how to hold on during bad times and be smart during good times, then they are easily successful no matter what.

Some projects would have made use of the golden opportunity to save during the good market. They might have saved enough money and kept them in deposits. When the bear market starts and if the project is short on funds, they can either directly use the funds or pay with the interest generated from the investments. We can say that these are some of the projects that are very safe even during the bear market.

Saving resources for a bear market

After Covid, many companies have learned a big lesson on how to keep emergency funds to keep the business going. For example, some companies have now accumulated money for nearly 3 to keep the business running even if the market is not very good. One of my friends recently got selected in a start-up company and the person hiring him promised that no matter what happens to the market, he would be able to pay him for 3 years. This is a huge commitment and it is great that the companies have started thinking from this perspective.


Similarly, when the bear market is starting in the crypto world, I personally think that projects should have backup and emergency funds to keep the development funding going. There are some fixed deposit schemes and stable coin investments like HBD that don't usually get affected during the bear market. These are the best places to keep emergency funds for a bear market.

Projects and companies can even think about having a huge capital invested in stable coins like HBD that generate 20% APR and the invested value should be in such a way that the interest alone should be sufficient to pay the employees who are working. This way there is safety and the project need not slow down because of financial challenges.

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Avatar for bala41288
4 months ago