Building Crypto Projects During Bear Markets: A Smart Move

Crypto Currency projects have been on a roller coaster ride in recent years with soaring valuations hype cycles brought on by media and significant market corrections. Many in the mainstream media have questioned the sustainability of the crypto with media channels always at the ready to call Bitcoin dead the moment there is a decline or correction.

Others however have seen those moments as an opportunity to thrive and buy more Bitcoin in preparation for the next Bull market. Dips are also always a great time to build projects and those that do often make good pay in the bull.

Maple Finance is an Australian crypto startup co-founded by Sidney Powell has demonstrated that building crypto projects during bear markets can lead to remarkable success.

In 2021 and 2022 the crypto market experienced unprecedented gains and a hype cycle that seemed to outpace the actual adoption of crypto projects. Maple Finance, a decentralized finance (De-Fi) lending protocol operating on the Ethereum and Solana blockchains was caught up in the turbulence of market crashed.

Including the collapse of the infamous crypto exchange FTX as well as other crypto currency failures like Genesis, Three Arrows Capital, and BlockFi.

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Market Recoveries Happen

Sidney Powell, CEO and co-founder of Maple Finance stated that these turbulent times led to a significant reduction in counterparty risk appetite among investors. The fear of contagion risk from events like the FTX collapse prompted many to withdraw from smart contracts and lending platforms opting for the safety of cash.

There is a common saying in Crypto and that is you only lose if you sell. A big part of that meaning is that you have already bought an asset for a certain price and there is no guarantee that it will remain at that price point. While the token is down, you only lose the money if you dispose of the asset. This is known as a capital loss. But if you hold the asset, there is no loss as yet.

The events of the recent months there have been signs of a recovery in the crypto market. If we do look at Bitcoin. Those who retained and continued to buy low will now be making money back.

In relation to Maple Finance Powell states the main metric for gauging Maple Finance's success, known as total value locked (TVL) in its smart contracts has surged fivefold since March. While valuations have yet to fully recover Powell points to the recent uptick in Bitcoin's price which reached a 17-month high, as evidence of the market's resilience.

The Total Value Locked of a lot of other crypto projects is beginning to rise once again with Ethereum being the biggest winner so far.

A Bit About Maple Products and Services

Maple Finance offers a range of Crypto services such as secured lending, real-world asset lending, and tokenised Treasury bills. The real-world asset lending allows businesses to obtain cash advances based on expected government rebates. Thus helps in creating a high yield short dated product. The tokenised Treasury bills enhance the mobility of finance and commerce offering near instant global transactions. Check out their Trade-Fi News

Sidney Powell's vision for Maple Finance is straightforward he wants to leverage blockchain technology to reduce costs and improve the efficiency of lending operations. The agility provided by a blockchain infrastructure allows real-time data recording and rapid electronic transfers making it a compelling alternative to traditional financial systems.

Alt Season is coming!

The Altcoin season is almost upon us!

As the crypto market continues to boom experts believe it's on the cusp of an altcoin season. In a recent CryptoBanter YouTube video Shon highlighted several altcoins including Cardano (ADA), Gala (GALA), and SushiSwap (SUSHI), as prime candidates for an upcoming uptrend. Although we’re still backing Hive and Leo 😊

Shon emphasised that Bitcoin dominance is expected to decrease as investors shift to altcoins for more room to grow profits. He is considering shifting his focus towards altcoin entries and suggested that there could be a significant surge in the altcoin market.

While the crypto market remains volatile and often unpredictable the story of Maple Finance and the anticipation of an altcoin season serve as a reminder that projects that build in a bear do win.

We’re all counting on a well known Hive project @mancave to provide some much needed news on value increase as @raymondspeaks has been building this bear. Building robust crypto projects during challenging times can lead to substantial growth when the market eventually rebounds providing valuable lessons for both industry veterans and newcomers. If you missed it this time, don’t worry there is always next season.

Image sources provided supplemented by Canva Pro subscription. This is not financial advice and readers are advised to undertake their own research or seek professional financial services.

Posted Using InLeo Alpha