Are Bear Markets the Best Time for Developers to Build?

Blockchain, News, Opinion | July 12, 2022 By:

Inflation, macroeconomics and fear of another pending recession are driving the recent panic behind the crypto markets’ free fall. But what exactly does this mean for those trying to create new platforms? Ultimately, the idea of a bear market is a phrase best saved for the investors. For developers, these conditions often bring a level of quiet to the industry that allows us to really focus on building. From NFTs to DeFi, and even the original launch of Ethereum – these were all built when the hype was at its lowest and the focus on long-term solutions was high.

Downtime is made for building

Prices may go up and down, but projects building for the long-run have hopefully taken market fluctuations into account. The best projects have runway to survive the long crypto winters while taking advantage of the benefits that come from lack of hype around the industry. VC’s continue to fund projects for the long-term, with over $3.67 billion invested across blockchain projects in June.

Think about it this way: for Ethereum developers, instead of developing for a token at $4,000 USD, you’re now developing for a token valued at nearer $1,000 USD – if you’re trading, then you’ve likely lost money. However, if you’re developing on the blockchain you end up benefiting from less demand and less pressure on the blockchain itself.

Prepare for the next interest wave

MoonPay is a great example of a company that is continuing its mission to provide the rails for people to enter the crypto markets, and that mission is not shaken by market fluctuations. Companies like this know that there’s more upside to crypto beyond short-term volatility, and it’s important to make sure the infrastructure is stable and ready to meet the needs of current and future users.

Companies like my own, MEW (MyEtherWallet) have witnessed these cycles over the years and have continued to build through the volatility. Before the next surge of interest hits, companies should remain steadfast in their commitment to developing the projects they started, so that their platforms are ready to onboard the next hundred million into the future of web3.