Founder of The Bakery: Has the fundamentals of the encryption industry deteriorated?

Original compilation: 0x137

Original compilation: 0x137

This article is based on the views of The Bakery founder croissant on his personal social media platform, which is compiled and translated by BlockBeats as follows:

Yes, the total market capitalization of the crypto market has dropped by 41% in a month, is the bear market finally here? Let's look at the situation in each sector.

Don't think that only Crypto has fallen to multi-month lows, and there are still many investment opportunities in other markets.

Looking at stocks, the Nasdaq is down 12.7% for the month, erasing single-digit gains in previous months, and that's just one exception.

Now many people may think that the transaction volume of Ethereum will be greatly reduced. After all, the gas fee is so high that it will become less "friendly".

However, this is not the case, and despite the unusually high fees, more and more users are willing to pay higher gas to ensure their transactions are included in the next block...

It is worth noting that although there are still a large number of transactions on the Ethereum chain, miners only get a very small part of the benefits, and a large amount of Ethereum has been destroyed. Over the past year, $3,903,405,539 worth of Ethereum has been burned.

In the field of DeFi, many protocols and platforms have also withstood the stress test, and no black swan incident occurred.

You might ask, is there anyone still buying those stupid NFT images?

However, even after the massive collapse of the encryption market, the momentum of buying NFT has not diminished. Think about it, if they can gain more application scenarios and legality in the future, what will it be like?

From the perspective of ecological innovation, the encryption field does not seem to be affected by price fluctuations.

Not long ago, ETHGlobal held a hackathon. More than 800 developers from 68 countries submitted more than 250 new projects based on Ethereum, setting a new record.

Even the U.S. government has changed its view on Crypto, and the congressional hearing last December can be regarded as one of the biggest positive events for the crypto market in 2021. Lawmakers are starting to understand the true magic of blockchain, which represents a clear change in crypto trends.

On a macro level, the fundamentals of Crypto as a solution to macroeconomic problems remain unchanged. Will public trust in the U.S. government grow along with confidence in the dollar? Will workers be satisfied that their wages cannot keep up with inflation? Are there any asset classes that can safely preserve their own purchasing power and outperform central bank balance sheet growth? The answers to these questions still point to Bitcoin and Crypto.

In fact, apart from the 40% price fluctuation, the fundamentals of the crypto world have basically not changed in the past few months, because the fundamentals never care about the so-called "technical analysis".