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The cryptocurrency market is continuing its downward trend that started end last year, and the prices of Bitcoin (BTC) and Ethereum (ETH), the two crypto strongholds, have dipped sharply, particularly since this May. Investment in the crypto space too, has declined – the total amount of crypto venture capital in the first six months of this year totaled US$9.3 billion, down 26% from the record US$12.5 billion set in the first half of last year. Meanwhile, large-scale layoffs have been carried out on the part of digital currency exchanges and crypto lending platforms, further fueling negative sentiment in the market.
The Web3 space has, however, thrived despite the overarching bearish market environment. Web3 technology is continuing to mature, and a large amount of funds and talent have entered the Web3 space, resulting in the release of various innovative applications. GameFi, in particular, is enjoying a healthy dose of development alongside an increase in user numbers.
Web3 has been gaining trust and acceptance among netizens, and more institutions have begun to hop on the Web3 bandwagon. How then, should investors zoom in on this promising space that has grown by leaps and bounds despite the market downturn?
Here are some suggestions:
1.Maintain confidence and preserve Web3 investments
In less than a month, the market value of Luna, initially worth tens of billions of dollars, dropped to near zero; Three Arrows Capital declined from managing funds worth tens of billions of dollars to being one billion dollars in debt; while decentralized lending platform Celsius Network filed for bankruptcy protection. Such catastrophic events, coupled with the falling prices of digital currencies, have made many users increasingly pessimistic about the future of the cryptocurrency industry. Confidence is sorely needed at such a crucial juncture.
Given the current lack of trust in the industry’s future, it is often easy to forget that the blockchain was founded with trust at its core. Over the past ten years, the blockchain has been fighting tooth and nail to alleviate the trust issues inherent in centralized systems. The blockchain has not only operated successfully for nearly ten years, but innovative products in the DeFi and NFT spaces have bloomed from it, marking the cornerstones of a promising Web3 future.
The transition from the bull market in the earlier part of last year to the current bear has resulted in users suffering large amounts of asset value depreciation. Users now need a reliable platform to store their remaining assets till the onset of a crypto spring, and digital asset exchanges have become platforms of choice due to both trading convenience and the rich array of options offered. Institutions such as Huobi Global have been operating securely since the crypto industry’s infancy with zero security incidents, and have proven a reliable choice for users.
2.Strengthen learning and actively participate in Web3’s development
Ethereum was developed in late 2013, when the price of BTC halved from US$1,000 to US$500. By early 2016, Ethereum’s technology had gained recognition, and the price of ETH began to skyrocket, attracting public interest. Ethereum has today established itself as a leading public chain trusted by the masses. Similarly, Huobi Global was also established in 2013 and has since cemented its reputation as a trusted digital currency trading platform for users.
Decentralized cryptocurrency exchange Uniswap is yet another excellent project to have emerged from the bear market. From examples in recent history, it is apparent that bearish market conditions can give rise to successful, innovative businesses.
Challenging market conditions can serve as a natural filter, weeding out promising projects from their competition and giving developers and investors valuable opportunities to recognize and invest in such projects. Huobi Global intends to regularly update its Huobi Learn platform with tools and tips so users learn continuously.
3. Communication generates greater value
It has been less than ten years since the birth of the blockchain, but developments in this space have occurred at a rapid pace. Embracing Web3 would be synonymous with promoting community development – Huobi Global has more than 200,000 users worldwide in its Telegram and Discord channels who are actively debating the latest Web3 events. Huobi Global will also not shy from playing an active role in the development of this budding space and has already listed dozens of tokens associated with the Web3 industry.
Web3 is upon us and will be here to stay. Grasping this opportunity at the soonest possible moment is the only way forward.
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