Maybe this bear market isn’t such a bad thing for cryptocurrencies?

There’s no denying that the cryptocurrency industry is mired in a deep bear market, with top projects down more than 60% from their all-time highs reached around the winter of 2021. While new investors may be spooked by this price activity, veterans in the space remain unfazed and expect the market to recover stronger than ever.

The cryptocurrency market hit all-time highs in 2021, both in terms of market valuation and general awareness. Before the previous bull run, most people had no idea what cryptocurrency was or had only heard of Bitcoin . Although blockchain is not ideal in terms of actual use cases, the explosion of NFTs has made almost every American household aware of blockchain and one of its greatest features. Coupled with billions of dollars spent on marketing, cryptocurrencies have become legitimate in the eyes of the average person, whether they actually understand their purpose or not.

Over 15,000 of the world’s leading cryptocurrency experts gathered in Austin, Texas last weekend for Consensus 2022. At the event, there were hundreds of talks about all the different applications, potential, and opportunities for blockchain and cryptocurrency. Almost every well-respected project had a booth with representatives excitedly talking about the future of their cryptocurrency and its development.

Bitpush reporters attended the event, and one of the biggest takeaways was that there is no need to worry about the price of cryptocurrencies. Builders and developers in the field will not change any of their work simply because of changes in prices, and they still plan to create world-changing technologies with the same fundamental value as during the bull market. Some developers who wish to remain anonymous are excited about the opportunities in the bear market for several reasons. First, they believe that there will be massive discounts on top projects that deserve higher valuations. Second, and arguably more importantly, the bear market will kill off all scam or untrustworthy projects, leaving only the best ones. This also happened in 2018, and many projects that were once in the top 50 are now barely in the top 500.

The failure of bad projects has already started happening, and we can see this with the death spiral of Terra and UST. Before the crash, UST was one of the largest stablecoins in the world with a valuation of over $18 billion. If the crash never happened, UST and Terra would have continued to grow and become more indispensable in the market. Eventually, the project will have to fail, so letting it fail now, rather than falling down a few years later when it may be worth hundreds of billions of dollars, is a blessing in disguise.

For new cryptocurrency investors, it’s easy to be intimidated by current market conditions and worry about the future of cryptocurrency. However, for the tens of thousands of developers and builders helping to create the next generation of the internet, this bear market is a natural part of contributing to the overall health of the industry.

Knowing this may not make it any easier for investors who lost a lot of money overnight, but it may inspire confidence in the market's future recovery.