What Should Web3 Projects Focus on with a Bear Market on Its Way?
As 2022 ends and the crypto bear markets show no signs of weakening, the world of Web3 projects should work on preparing for the next bull market. As the internet in the coming years is set to onboard a wave of new users from across the globe, this will cause token prices to decline and growth to slow down.
Regarding a16z's 2022 State of Crypto Report, which states that cryptocurrencies follow something known as a "price innovation cycle." This cycle refers to new projects coming online with different solutions, causing prices to fluctuate. Here are three key areas where projects can invest their time and focus on preparing for this new wave of users and future bull markets.
Improving User Experience (UX)
Typically, the earliest adopters are the most tech-savvy for any new technology. But as time goes on, new users who are less technically literate will come online, and there will be a need to ensure designs for websites and apps are intuitive and user-friendly.
This is true for Web3, with one of the biggest hurdles for new users to overcome is the amount of technical knowledge they must have. Ensuring projects are user-centric for individuals of all skill levels can prevent web3 adoption from slowing down and being stifled, resulting in new users abandoning the idea of trying to understand this new tech.
Expand Financial Services
Another point is expanding financial services. As new users come online, accessing financial services across DeFi, such as mortgages, car loans, business loans, and daily banking, will make life easier for the newest individuals learning their way around Web3. Still, it will also help push its adoption.
More Infrastructure Equals More Capital
Lastly, building additional infrastructure will pay huge dividends when a bear market does hit. A recent report by Messari found that the projects that showed the most promise and profitability worked diligently in the infrastructure space. From file storage, streaming videos, and decentralized wireless networks, all these components will be critical for Web3 adoption.
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