Why Crypto Market Dip May Be Good For Web3 Development
Here’s what happened to the cryptocurrency market this year and what it might mean for Web3 developers now and in the future.
As 2022 has approached its equator, the cryptocurrency market continues to experience one of the toughest meltdowns in its history, with Bitcoin dropping by 50% since its November ATH and the overall global market cap falling below $850 billion.
When newly launched coins start to show signs of volatility, it is perceived as a normal practice. However, when top leading cryptocurrencies go bearish, there is no wonder why big investors start to panic: their funds lose value, and the population of crypto enthusiasts decreases.
With the world caught up in a geopolitical crisis and inflation, the last thing you want is to lose money.
But not everything is nearly as gloomy as it might seem. Many crypto analysts strongly believe — now is the most perfect time to start investing and creating. In this article, we will talk about what makes skilled digital finance professionals think today’s market dip could make crypto stronger and lay the foundation for the market’s prosperous future.
Why is the crypto market down?
Starting early 2022, the world’s leading cryptocurrency Bitcoin has lost more than half its value — plummeting from $46k as of January 1st to roughly $20k per 1 BTC as of Q2 2022.
Early Bitcoin investors did in fact manage to make a fortune out of simply being at the right time and place. This led many investors to believe that Bitcoin could be a new safe option for storing value, similar to gold, a sort of crisis-proof asset. While the question still stands, what we have seen in the last few months proves that Bitcoin’s volatile nature undermines its reliability during a period of economic instability.
Similar to Bitcoin, other big crypto players, such as Ethereum, Polkadot, Solana, Cardano, etc., have dropped below the resistance level, mostly under the pressure of the negative economic impact on the state of the world. Cryptographic digital assets’ price is mainly based on their supply and demand, which is why some analysts argue that the true value of cryptocurrency is extremely hard to assess. Looks like the bumpy ride may continue for the time being.
What can we do now?
Unlike what some people may think, now could be the right time to embark on the dApp development journey. According to experts, the 2022 market dip has made a few positive changes in the crypto community.
As many projects are put on hold and the overall market cap is dipping, gamblers and scammers leave the market, whereas sustainable networks stay. This opens up new opportunities for serious Web3 developers amid the bear market, making it less competitive. Building on the blockchain might also get cheaper, thanks to the prolonged reduced demand.
Besides, developers may have lower salary expectations due to reduced budgets, and that could, therefore, decrease the interest in purely profit-seeking activities. True enthusiasts and professionals might want to stay in the industry and start focusing less on something short-term, like pump-and-dump — instead, Web3 developers may want to shift their focus on long-term solutions and work on getting rid of the industry’s main issues, such as environmental impact, gas fees, etc.
How GetBlock can help
Tough days require smarter solutions. GetBlock is a reliable blockchain nodes provider for over 40 top leading networks. Amidst the current market downfall, GetBlock continues to deliver robust services for Web3 developers.
With the help of GetBlock, users have an option of connecting to various blockchains (Bitcoin, Ethereum, BNB, Cardano, etc.) via shared or dedicated nodes. GetBlock’s efficient architecture allows for maximum flexibility and operability. Shared nodes as a service guarantee access to peer-shared node infrastructure, while dedicated nodes are designed to meet the exact requirements of a single client. What’s more, GetBlock also offers node clusters as a scaling solution for those Web3 developers who want to maximize their workload and uptime.
It is a well-known fact that a crisis is yet another opportunity for growth. Web3 development might as well fall into a category of prosperous ventures that could shape our future, starting today.