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How Does A Bear Crypto Market Landscape Look?
Investopedia, the leading source for clear and concise financial information, defines a bearish market as:
When a market has experienced a prolonged price decline, this term describes a situation in which the price of securities falls by 20% or more compared to a recent peak [over a prolonged period, usually two months or longer] amid widespread pessimism.
Most agree that we are currently experiencing the next crypto bear market phase. This has brought with it some very visible effects.
The Features Of The Crypto Bear Market
What have we seen?
- Prices of cryptocurrencies have fallen by 50 to 80%.
- Large outflows have been caused by cryptocurrency hedge funds and retail.
- Purpose Bitcoin ETF - the largest Bitcoin ETF worldwide had to sell approx $500,000,000 worth of currency at the end of June. This was the largest redemption day in its 14-month history.
- An expert predicted that only 20% of apps would survive and that many others would disappear.
What does this mean if it sounds alarming? The fall in crypto market capitalization is a major cause of concern, but what does it mean for the development of blockchain projects? We will see in the following section that the bear, for a limited time, in crypto can bring you benefits that you might not have thought of.
Why The Bear Market Is Great For Blockchain
In a bull market, companies seek ways to maximize their short-term gains and capitalize on the hype. It resulted in many projects being conceptualized quickly.
It was brought to the market, often before sufficient market research or analysis had been conducted by the founders. This is crucial for identifying and addressing any market gaps. Or, funding is provided before the foundations of technology and road maps are in place, resulting in development shortcuts and production delays.
Bull markets lead to a saturation of platforms with no differentiation regarding strategic products. Launching products too soon increases the risk of product flaws, security vulnerabilities, and poor user experiences, especially as projects try to optimize their project for the short time frame granted by the current market.
We've seen an enormous number of vulnerabilities in the blockchain area exploited over the last two years due to inadequate standards on the infrastructure side.
These projects avoided major setbacks if they had spent the time necessary to develop and test their infrastructure, security protocols, and other technical aspects.
It's not uncommon for blockchain projects, during the beta testing phase, to run into various bugs. Some projects have to run several beta tests to fix all the bugs.
This can delay the launch and impede the company's road map. If companies spent more time on developing their products and stress-tested as many possible bugs as possible, many of these problems would not arise, and further delays could be avoided.
While a bearish market may not be the best time to launch a new blockchain development firm or acquire new users, it can positively affect long-term product security, customer satisfaction, and achieving milestones.
A high-potential product that is technologically sound and addresses a market gap can also attract investors and partners. Blockchain companies who take the time to develop their products properly will increase their chances of success, whether aiming to attract a smaller pool of investors and companies interested in entering the market during the bear market or solidifying their pitch for the inevitable bull market.
Bear Market Benefits
Even though many large and small investors are experiencing some discomfort now, it is not all doom. Here are some benefits of crypto bear markets.
Scams Decrease
It is difficult to believe that so many people would gamble large sums of money on Squid Game or invest in other projects without proper verification.
When crypto is in a bear market, investors are more careful about investing their money. This causes less-than-reputable projects to either lose momentum or disappear entirely.
Two benefits are evident from this reduction in the number of scam projects:
- The average person loses less money.
- The image and reputation of the cryptocurrency industry have improved.
These two points are vital if investors want to fund new DeFi-projects. Statistically, the following are true:
- In 2021, the revenue from scamming grew 82% to approx $7.8 Billion worth of cryptocurrency that was stolen by victims.
- The theft of cryptocurrency in 2021 increased by 516% compared to the previous year.
- In 2021, DeFi protocols accounted for the majority of money laundering. This is an increase of 1,954% from 2020.
The utopia DeFi, Web3, and their evangelists envision will require better security than we see today. A bear market could be the perfect opportunity for investors, developers, and community members to support this initiative.
Projects That Are More Worthy Of Support Come To Fruition
Bear markets are not only difficult for developers but also rewarding skills and great ideas. It is good for the industry as a whole, and it also means that developers are less discouraged because their blockchain project isn't being overshadowed by the latest fad token or platform.
According to a recent article, it is not enough for projects to hand out tokens. It relies on the sweetener that comes along with a stake initiative.
The project must be sufficiently solid and have strong prospects to prevent investors from abandoning it or only providing funds temporarily to make quick profits. We can see more clearly in bear markets the projects with the potential to change the industry's future. Remember that the previous bear market gave us Uniswap and Polkadot, as well as BNB Chain and Chain Link.
The Strength Of The Community Shines Through
When times are good, it is easy to make friends. But when the going gets tough, your true supporters become apparent.
In a bearish market, people can go deeper and educate themselves, as well as be part of a group that believes in the success of a project.
We have repeatedly emphasized the value and strength of the NEAR Community in their support for the project that we are working on, PembRoke Finance which is built using the NEAR Blockchain.
They have not only helped raise awareness but also provided constructive feedback on the project's design and during the testing stage. Communities are the ones who help worthy projects to get noticed when there is less funding available.
Encouragement Of Less Risky Investments
The mainstream media, which is older and more conservative, is not short of articles that claim that blockchain is useless and that the whole industry is built on hype.
However, they cannot resist a juicy news story when the cryptocurrency movement is on its way up. We see articles about working-class mothers quitting their jobs to trade cryptocurrency or people who have made it big with a meme coin.
While making for an interesting headline, this type of reporting encourages people to invest in random projects with little research and without risk management. In many cases, this leads to loss or being taken in by crypto scams. In a bear cryptocurrency market, these stories are much less common.
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Blockchain Innovation Is On-Going
The advances made by builders in bear markets catalyze a bull market when the timing is right. DeFi and Web3 are the future of the Internet and entertainment for many big companies who can afford to bet on a longer-term game.
Here are a few examples.
- Meta (formerly Facebook) is testing the ability of creators and collectors to showcase NFTs via Instagram.
- Budweiser enters blockchain gaming by sponsoring the Ethereum-based NFT horse race game Zed Run.
- Web3 projects like NFTPort (NFT Infrastructure for Developers approx $26 Million in Series A Fundraising) and Molecule (approx $12.7 million in Seed funding) attract big investments.
Although this market downturn has (temporarily shifted) investment into different areas, there are still a lot of trusts in a sector that is moving beyond theoretical promises and starting to deliver working systems.
DeFi and Web3 are still primarily focused on entertainment. Still, they're starting to tackle other issues, such as culture, the environment, and artificial intelligence.
Consider These Crypto Strategies When The Market Is In A Bearish Phase
You're unlikely to be able to survive a full-blown bear market unless you have a crystal ball or a market understanding.
There are a few strategies that you can use to ensure your portfolio survives to fight another day.
- Dollar-cost averaging.
- Focus on the long-term.
- Do not panic, and don't read too much in the hivemind.
- Diversify your assets but be cautious of high-risk projects.
Dollar-Cost Averaging
Dollar-cost averaging can help you take advantage of market downturns. DCA is a strategy that involves buying a set amount of assets on recurring intervals.
This applies regardless of what the market does. DCA is a strategy that allows you to increase your holdings at lower prices. The strategy will reduce your cost basis over time.
This is the average price that you paid per unit.
Focus On The Long-Term
You are the only one who knows why you purchased crypto. If you have a long-term vision for your investment, big market swings from month to month or year to year won't affect that.
Remember to recall your reasons for investing in digital assets and evaluate whether they are still viable.
Do Not Panic, And Don't Read Too Much In The Hivemind
Keep a cool head when investing. This is especially true when the market conditions are not favorable. Panicked investors make bad decisions and can suffer big losses by pulling their holdings from the market too early.
Take crypto news with a pinch of salt. This is especially true in a bearish market when Crypto Twitter and other sites are filled with FUD (fear, uncertainty, and doubt).
Avoid getting carried away by the positive or negative news you hear. Please don't listen to "some guy on Twitter" when he gives you crypto investment advice.
Diversify Your Assets But Be Cautious Of High-Risk Projects
Crypto assets can be a great way to diversify an investment portfolio, even in a market downturn. Don't let the promise of huge gains cloud your judgment.
Many, many crypto projects are worth your consideration. There are plenty of scammers who promise the world but never deliver. Do your research before investing your hard-earned cash.
Never invest money that you cannot afford to lose.
Considerations To Make When Choosing And Hiring A Blockchain Development Company
Before selecting a blockchain product development company, you should consider the following factors:
Competency
The company you select must demonstrate that it is knowledgeable in blockchain technologies, programming languages, and tools.
Smart contracts, blockchains, and other related solutions require a deep understanding of multiple technologies. A few of these technologies and tools include platform-as-a-service (PaaS), software-as-a-service (SaaS), Ethereum Virtual Machine (EVM), the Internet of Things (IoT), consensus methods, and more.
The programming languages include C++, C#, Java JavaScript, Node.js, Python and more. The ability to work effectively will be demonstrated by those with a good understanding of these technologies and their languages.
Performance
Its track record of developing complex blockchain solutions is also important when choosing the right blockchain company.
The company's performance is determined by the success of a project it has created. A unique idea results from a deep understanding of technology, its many aspects, and communication skills. Therefore, it is important to look at their portfolio and see how they have done with previous projects.
Flexible Development Process
A flexible development process is essential when hiring a blockchain company. In today's digital world, a fixed development strategy is not practical.
A flexible development process would be more practical. You can incorporate any last-minute improvement requests in a flexible process.
Maintain Deadlines
You cannot afford to risk project delays in this age of constantly evolving technology. You can be left behind by even a single day in the race.
You must therefore choose a company with a track record of meeting deadlines.
Pricing
When looking for a company to develop blockchain applications, pricing is a key factor. Some companies have a fixed pricing model, while others do not.
Choose a company with two or three different pricing models, so you can pick the one that best suits your needs. Consider that a blockchain project developed on a tight budget might not be your expected quality. Consider all pricing factors before you hire a blockchain solution development company.
Read More:
The Complete Guide to Getting Started :Blockchain Development
The Types Of Blockchain Developers, According To Their Skills And Expertise
The type of blockchain product or programming language determines the job description for a Blockchain Developer.
Let's jump right in.
Solidity Developer
Solidity is the programming language used by these blockchain experts. They can also create solutions using it. Solidity developers are needed for EVM-compatible blockchain projects such as Binance Smart Chain or Ethereum.
Rust Developer
This programming language is suitable for projects that use Solana, NEAR Protocol, Polkadot, etc. It's important to choose the blockchain your project will be based on and then find a developer who can meet your technical requirements.
Ethereum Developer
Ethereum is the gold standard for project development using blockchain technology. If you plan to use it, find a programmer who deeply understands Solidity and Ethereum.
Other categories of experts that you might be interested in are:
Blockchain Solution Architect
A high-level specialist is responsible for dapp integration and architecture creation. This specialist is essential for the safe and smooth operation of applications built on the blockchain platform.
DeFi Coder
Decentralized Finance is a field of development that has its developers. They may have expertise in DeFi protocols, farming, liquidity pools, and DEXs (decentralized Exchanges).
NFT Developer
If you're eager to adopt this technology, NFT specialists with a thorough understanding of ERC 1155 and 4907, and 721 can help with your project.
Blockchain Game Creator
Tokenomics integration can enhance your game with this type of expert. These experts do not create games but rather integrate blockchain technology into an existing game.
Every blockchain coder must have the following:
- Understanding blockchain technology is essential.
- Experience with smart contracts and knowledge of coding.
- The more programming languages you know, the better.
- Experience with distributed systems, peer-to-peer networks, and other networking technologies.
- Cryptography and cybersecurity expertise is a must.
You should ensure that such a developer is able to configure the solution you are looking for based on your requirements.
What about costs? We'll look at the average salaries for a blockchain segment.
Blockchain Developers Cost
The demand for blockchain developers and engineers is increasing due to the popularity of blockchain and its growing adoption.
Experts reports that salaries for these specialists are comparable to those of AI developers.
Developers' cost are determined by their experience level, region, and skill set. Seniority is used to classify programmers into juniors and middles.
Their salaries will differ. We have researched the salaries of blockchain developers based on country. Below you will find a median cost for each region.
All sums are shown in US dollars. In the US, the average salary for a blockchain developer is more than $104600 approx. Meanwhile, in Canada, it's about $70000 approx.
In the United Kingdom, it's over $65000 approx. A blockchain developer's salary in West European Germany is around $77000.
The Swiss pay is higher at about $80330. In Singapore, the average salary for a blockchain developer is $60000 approx. In China, that figure is $58600 approx.
India is the only country paying blockchain developers an astonishingly low approx $8500 annually.
Eastern Europe is the ideal place to find a blockchain developer. According to a study, the average salary of a blockchain developer in Ukraine is below $50000 approx.
Ukrainian developers are more efficient than their American or Israeli counterparts. You can therefore hire professionals at a lower cost in Ukraine without compromising the quality of your products. Check out the available options.
How To Choose A Blockchain Development Company
Before you begin your search, it is important to keep the factors mentioned above in mind. This section will give you an overview of the business strategy for selecting the best blockchain development company to work on your project.
This includes research on the blockchain, technology, contacts, and hiring. This approach is explained below:
Basic Research
It would be best to begin your primary research by gathering information on relevant companies. You can do online and local searches and ask for advice from experienced people.
Referrals from experts can be found. All the data you collect will allow you to analyze company profiles, including their completed projects. Understand how they work and if your ethics are compatible with any firm.
Technological Research
One aspect of the research is the technological expertise of companies that develop blockchains. An ideal firm must have developers with experience in blockchain development.
They must have experience and knowledge of blockchain development platforms, tools, and other important aspects.
Contact And Hire
Shortlist companies based on your needs after collecting information. For your project, contact these blockchain service providers.
It is important to understand what you want to avoid miscommunication. Describe the specifics of your project. Hire the firm that best suits your needs and your budget.
How We Select Candidates For Blockchain Developer Jobs At CIS
We are very cautious with our employees at CIS. We are already a family. We need to have the same values and approach projects of blockchain development services in the same way.
When we are hiring new candidates, the procedure is as follows:
- The first step, our recruiter will check the values of your team.
- If necessary, the second step is to check your English level.
The CIS technical lead will determine the candidate's level of expertise and tech stack. We sign an NDA for each employee if the decision is positive.
You can be confident that your data will remain confidential.
We are responsible as a company for the comfort of our developers since it allows them to be productive and efficient and make minimal errors.
A team leader conducts code reviews to eliminate errors, no matter how small. It would be best if you did the job of a blockchain developer properly.
CIS is a group of experts with a wide range of specialties. We are prepared to create specialized teams for you or use one already in place.
You can read CIS's successful case study of a software development kit for a cryptocurrency wallet.
Want More Information About Our Services? Talk to Our Consultants!
Discover Current Opportunities With CIS
Flexible and equipped with the necessary skills, those who can adapt to new situations will find new opportunities.
Cyber Infrastructure Inc. (CIS) is a company that has completed over 90 projects in the past seven years. As your partner, we can turn your innovative idea into reality.
We will work with you from the planning stage to the launch of your product and its ongoing development. Contact us today to discover how we can turn your great idea into a solution people will use.
