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Time to accumulate? 5 sectors to watch during crypto winter


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It’s bizarre to assume that anybody might look ahead to downturns within the crypto market, however that’s exactly the place held by many builders and venture creators who benefit from the low-pressure surroundings that exists throughout a bear market. 

Because the saying goes, bear markets are for constructing, and now is likely one of the greatest instances to survey the panorama to see which sectors of the market are most energetic in designing the platforms that may soar to new heights within the subsequent bull cycle.

Right here’s a take a look at 5 sectors of the blockchain ecosystem which will current a number of the greatest alternatives for accumulation whereas costs are low and demand is non-existent.

Layer-1 protocols

Layer-1 (L1) protocols like Bitcoin (BTC) and Ethereum (ETH) type the inspiration that a lot of the cryptocurrency ecosystem is constructed upon and allow a lot of the different sectors of the market to exist.

That being mentioned, at the moment, there should not many choices out there for launching different protocols on the Bitcoin community and Ethereum has well-known limitations by way of scalability, which may result in excessive transaction prices and sluggish processing instances.

Resulting from these components, there stays a big alternative for different L1 protocols to ascertain themselves and carve out an excellent slice of market share. The whole income generated by a protocol is one metric that can be utilized to find out which networks see probably the most utilization.

Cumulative whole income for the highest L1 chains over the previous 180 days. Supply: Token Terminal

According to knowledge from Token Terminal, the highest 5 L1 protocols by way of whole income over the previous 180 days, excluding Bitcoin and Ethereum, are BNB Good Chain (BNB), Avalanche (AVAX), Helium (HNT), Fantom (FTM) and Solana (SOL).

Layer-2 protocols

As talked about above, the Ethereum community has limitations by way of scalability that received’t be solved during the upcoming Merge, leaving a gap for layer-2 protocols to fill the necessity by serving to to scale back the exercise that happens immediately on the Ethereum blockchain.

In keeping with L2Beat, which tracks the stats on the highest Ethereum L2s, Arbitrum is ranked primary by way of whole worth locked (TVL), adopted by Optimism and dYdX.

Prime 8 L2 networks by whole worth locked. Supply: L2Beat

One community that was curiously left off the record offered by L2Beat, however stays probably the most extremely adopted L2 by way of energetic wallets and protocols launched is Polygon (MATIC), which at the moment has a TVL of $1.59 billion, according to knowledge from DefiLlama.

As for the Bitcoin community, the primary L2 answer that’s at the moment seeing elevated inflows is the Lightning network, however there isn’t a token concerned with the protocol. As a substitute, customers can opt to run a node in the event that they wish to help the community in addition to earn passive earnings.


The gaming sector of the cryptocurrency ecosystem has confirmed to be one of many extra resilient in terms of keeping users engaged throughout the present crypto winter.

The emergence of play-to-earn video games like Axie Infinity (AXS) helped shine a highlight on the probabilities of blockchain-based gaming throughout the bull cycle of 2021 and has led to an offshoot of quite a few “-to-earn” sort protocols resembling move-to-earn and learn-to-earn.

Information from DappRadar shows that a number of the prime video games by way of energetic customers embody Alien Worlds, Splinterlands and Farmers World, all of which function on the WAX community whereas Axie Infinity is the highest recreation by way of the worth of belongings held in its sensible contract.

Prime six video games by way of at the moment energetic customers. Supply: DappRadar

There are additionally a number of different video games which might be nonetheless in improvement however however attracting a variety of consideration, together with Illuvium and Aavegotchi, in addition to tokens that characterize gaming ecosystems resembling Enjin Coin (ENJ), Gala (GALA) and Extremely (UOS).

Social platforms

One sector of the cryptocurrency panorama that has but to actually get established in a notable means however represents an excellent alternative to assist improve adoption is social engagement platforms just like Twitter, Fb or Reddit.

Earlier entrance runners within the social media panorama embody Steem and its community-driven offshoot Hive, however neither protocol has actually achieved widespread adoption so far.

Whereas no different protocols at the moment in operation have managed to crack the code that pulls a variety of customers who keep engaged long-term, occasions within the wider world together with the continued drama round Elon Musk’s buy of Twitter present that social media stays in want of an overtly accessible community-focused platform.

Associated: 34% of gamers want to use crypto in the Metaverse, despite the backlash

Metaverse and NFT launchpads

A ultimate sector value keeping track of as a consequence of its widespread attraction with mainstream society together with efforts which might be already underway to combine it into every day life is the Metaverse.

To assist simplify issues, th Metaverse is a digital actuality illustration of all the info and interactions that happen on the web, constructed on prime of blockchain know-how.

Whereas the idea of the Metaverse remains to be in its infancy, it’s a preferred matter of dialog across the crypto sphere and is already attracting massive investments from a number of the most well-known and recognizable manufacturers on the earth.

Along with the Metaverse, platforms focusing on the creation and launch of nonfungible tokens (NFTs) are additionally value listening to because the NFT sector has been proven to be in style with most people.

Among the most developed and adopted Metaverse and NFT platforms at the moment in operation embody The Sandbox (SAND), which lately partnered with Playboy to launch a MetaMansion social recreation on the platform, in addition to Decentraland (MANA) and ApeCoin (APE).

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The views and opinions expressed listed here are solely these of the creator and don’t essentially replicate the views of Each funding and buying and selling transfer entails danger, you need to conduct your individual analysis when making a call.