Crypto Market Volatility - How many crypto projects will survive?

Bianca D. Bianca D.
14 May 2022
3 min read
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Crypto Market Volatility - How many crypto projects will survive?

Ethereum, Solana and Elrond are three of the most influential blockchains that allow the transfer of ownership on the blockchain through NFTs via the use of smart contracts.

The price of each crypto asset is influenced by the speed, scalability, and security of each blockchain and the integration, adoption, and use cases in DeFi and NFT space.

Bitcoin paved the way for decentralisation by removing the need for third-party interaction in order for transactions to be completed on the blockchain. Since 2008, when Bitcoin was first introduced through Satoshi Nakamoto’s whitepaper, the adoption of Cryptocurrency and Web 3 integration has seen a rapid growth amongst investors, retail, institutions and countries who embraced the future of decentralisation. 

Bitcoin started as ‘’a peer-to-peer version of electronic cash’’ but soon became a store of value with people understanding that it can do more than replace fiat money, it removed the need for trust in central banks through decentralisation, and it allowed the unbanked population to be part of the financial system and acted as a hedge against inflation due to its scarcity.

Ethereum enables the deployment of smart contracts and decentralised applications to be built and run without any downtime, fraud, control, or interface from a third party. Through blockchain technology, smart contracts are self-executed with the terms of the agreement between the buyer and seller being directly written into lines of codes. Through smart contract takes place the transfer of digital ownership which occurs when an NFT is minted or purchased.

The NFT Market boomed in 2021 with projects such as BAYC, MAYC and Decentraland, all built on the Ethereum blockchain which faced challenges due to slow transactions and high gas fees. This made room for more scalable blockchains such as Solana and Elrond which have the same case uses and made the NFT experience a lot faster and more enjoyable with gas fees reduced to pennies.

When the Bear Market hit, both the digital assets and NFTs took a hit and many other projects built around hype and speculation will not survive this period, however, one thing is sure, to minimise the losses in this period you need to have a diversified portfolio and bet on projects that have real utility and have proven capable of delivering according to their whitepaper and roadmap.

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Bianca D.
Bianca D.
About the Author

Financial Crime Investigator & AML Specialist. Crypto Educator NFT Marketing & Crypto Promoter DeFi & Web 3.0 Content Writer

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