If there are any positives to a bear market, it is what happens in the absence of quick money opportunities. The thought is that the people who remain are those who truly believe in blockchain tech. If you are confident and excited about the long-term future of blockchain technology, short-term changes are less impactful.
We are back in a period of market consolidation with founders focused on the fundamental, but not particularly newsworthy business of delivering outstanding results for their projects. Despite the uncertainty in the global market because of the war conflict in Ukraine the confidence is still high because the NFT came through during the Covid-fueled March 2020 market crash.
Bear markets are also a good time to learn more about the space. It’s a cliché refrain in times like this, but the bear market really is for building. To illustrate, companies like OpenSea, Dapper Labs, POAP, and Larva Labs all built their foundations in the previous bear market. Thus, by staying engaged you can be an early adopter of a company, platform, or protocol that could shape the future of Web3.
While 2021 saw NFTs gaining mainstream publicity, 2022 is set to be the year NFTs are integrated in a much more solidified way. This escalation will be due mainly to a larger understanding of NFT capabilities, regulation of NFTs, and industry accessibility as a whole.
Many large corporations are working on NFT projects, and following closely behind them, are investors who are not afraid to spend large amounts of money on NFTs. As a result, new NFT-based firms are popping up every day.
But the hype period is gone. Going forward, no investment will happen based on hype. The hype around NFTs has helped startups raise millions in funds. According to investment tracking firm Venture Intelligence, VCs invested $520 million in Web3 startups in 31 deals in 2021. In 2022, they have already invested $522 million in 20 deals so far.