There’s no doubt that the cryptocurrency market has continued to experience a lot of volatility since its inception over the past decade. However, matters have become especially compounded since the start of 2022, thanks in large part to the pervading macroeconomic environment that has affected a whole host of industries (such as stocks, commodities, etc) as well as the recent slew of insolvencies including those of prominent crypto entities such as FTX, Vauld, Voyager, Celsius, etc. 

The latter has not only resulted in massive sums of capital being drained out of the digital asset market but has also had a direct impact on consumer confidence in this space.

To elaborate, Since Nov. 2021, the total market capitalization of the crypto sector has dropped from a whopping $3T to its current levels of around $840B, signifying a drop of approx. 72%. And while this volatility has caused many investors to panic sell, it has also helped rid the market of several scammy projects and weak hands, something that many experts believe will be good for the market in the long run.

Long-term asset accumulation and crypto winters go hand in hand

While many casual investors tend to perceive bear markets as being unfavorable for spending their hard-earned money, those with solid fundamental knowledge of the global economy know that financial winters can oftentimes be the best phases for accumulating assets, especially when it comes to the cryptocurrency market.

It has been noted that seasoned crypto traders tend to buy the most during bear markets for the simple reason that they are likely to lap up tokens associated with their desired crypto projects at the lowest prices possible. This can be especially appealing to investors who have a long-term horizon and believe that the prices of their cryptos will eventually recover and potentially rise to new highs. Moreover, whenever a bull cycle commences, they then have the opportunity to register equally solid profits via their purchases.

Another reason bear markets can be a good time to invest in cryptocurrencies is that they present opportunities for “buying the dip” (i.e. purchasing an asset when it is experiencing a temporary price decline). This strategy is based on the belief that prices will eventually recover and rise again and can be especially useful for investors who are confident in the long-term prospects of an asset based on its core fundamentals.

That being said, bear market investments carry a lot of risks with them since investor sentiment is usually low during such periods. However, this also means that the possibility of accruing larger returns is much higher. 

Crypto projects shining amid a bear market

While many cryptos seem to be experiencing a lot of turbulence at the moment, there are several projects that are performing wel tool. This could because a wide range of factors, including market trends, regulatory changes, and adoption by merchants and consumers, are positively influencing these projects.

Philcoin is one such offering. The project can be best described as an award-winning philanthropic movement seeking to create an interactive ecosystem that utilizes a future-ready IoT (Internet of Things) framework. As a result, it affords its users the ability to draw passive income streams while using its wide-ranging suite of products and services.

To elaborate, through Philcoin, the global unbanked population — estimated at around 1.7B individuals — can gain access to quality financial services while also being able to garner digital wealth using several different venues. Lastly, owing to the fact that the project is built on the blockchain, its smart contracts are available for everyone to scrutinize.

To this point, Philcoin’s native smart contracts have been well-audited by third-party agencies and have been shown to exhibit a high degree of operational and governance transparency. Not only that, they also lie in harmony with the 17 Sustainable Development Goals (SDGs) established by the United Nations General Assembly in 2015.

Another project of note in this regard is IMPT, an offering that aims to tackle the issue of climate change, one of the most pressing challenges facing mankind today. Using its unique carbon-offset program, it ensures that carbon credits — that are minted and issued in the form of NFTs and tokens — can be earned through unique pathways, including shopping. This is especially noteworthy since the voluntary carbon market is currently estimated to be worth bout $2B but is set to balloon to a valuation of $100B by the end of the decade.

Looking ahead

Despite the crypto winter that is currently in session, there is enough data to suggest that this space will continue to grow at a monumental rate over the coming few years. In this regard, a recent report suggests that the total valuation of this space will rise to a whopping $32T by the end of 2027. Therefore, as we head into a future driven by decentralized technologies, it will be interesting to see how the market continues to evolve from here on out.