There are thousands of startups in the crypto space as of yet and with every new day, hundreds more are pouring in with the increase in awareness and adoption of the blockchain. Almost all of these startups are backed by tokens and cryptocurrencies. With the bear market strongly holding crypto at the moment, analysts have predicted that the weaker projects wouldn’t stay in the race for long and their market caps would eventually depict their value in the market.
Crypto analyst and investor Sam Ball shared his views regarding this talking to BlockPublisher saying,
Market cap is a voting machine in the short run and a weighing machine in the long run.
Further explaining his point relating to the market cap, Sam Ball said,
In the short run market cap is based on popularity but in the long run the weaker projects will fall away and their market caps will reflect their actual value.
For startups to stay in the game, the most necessary step according to Franklyn Richards, the director of Litecoin, is to survive the bear market. Most startups lose their market cap and they’re not prepared for the market to come down and the investors to move away. Consequently, their projects fade away. Franklyn advised such startups talking to BlockPublisher,
Just survive the bear market, its always more painful that you can imagine be prepared for it to last twice as long. Once you come out on the other end and interest picks up you’ll be rewarded.
Gil Luria, Director of Institutional Research at D.A. Davidson & Co. believed that the use cases and applications for crypto assets were yet to be improved for the crypto market to flourish, which might also come out to be a good advice for the new startups to look into the use cases and applications that hit everyday users of the centralized internet and bring them to blockchain. He stated,
The ultimate prospects for crypto assets markets depend entirely on the applications and use that emerge for these assets. While there has been a flurry of activity over the last couple of years, we have yet to see a significant number of commercially scalable solutions or applications.