Crypto Bear Market: What Segments Will Survive?

Bear markets are a completely natural feature observable in all commercial environments. They help in removing projects that have inefficiencies and that do not contribute to the wider ecosystem. They also help to remove the hype and false assumptions that contribute to, and rise during, the preceding bull market.  

The current crypto bear market has been ongoing for quite a while. It’s an ideal time to look at what projects and industries will survive over the long term, when capital is not so easy to come by. For reasons outlined below, four market segments that will survive the crypto bear market and have long-term viability are cybersecurity, infrastructure, data storage, and gaming.  

Segment Survivor #1 - Cybersecurity

With all that is ongoing in the world, few are aware that we are in a cybercrime epidemic. While fingers are often pointed towards Web3 security concerns, it's worth remembering that state departments, mega corporations, manufacturing facilities. universities, schools, health care providers, postal services, and more have all been breached. Even “secure”  password managers have been compromised. 

These all operate on a deprecated Web2 infrastructure, leaving themselves open to attack. Web3 projects that deliver successful security protocols are bound to survive over the long term. Existing solutions do not exist to adequately protect users from phishing attacks, social engineering, malware, keyloggers, and many other threats. 

Decentralized servers are much more secure because there is no central repository for hackers to steal from. Zero knowledge architecture ensures that providers do not keep customer information at hand. Customers retain access to their private keys across services. Much innovation remains, but we could see a renaissance in cybersecurity after this epidemic finishes. 

Segment Survivor #2 - Infrastructure

Decentralized infrastructure (“infra”) providers are also certain to survive as a market segment. In relation to the cybersecurity concerns of centralized server architectures, we have seen a lot of alternative providers crop up that do not hold customer data. The service is anonymously accessed, which is a core tenet of Web3. 

Aside from the fact that no personally identifiable information means nothing to target for hackers, Web3 infra providers are more efficient than traditional server architectures. In a world of rapidly rising energy prices and dwindling resources, increases in server efficiency are badly required. 

Existing server models do not cater to the many blockchain-as-a-service businesses that are redefining how we interact. A decentralized infrastructure is required to support and connect the many DAOs, dApps, NFTs, Layer-1s, Layer-2s, bridges, exchanges, decentralized exchanges, games, metaverses, and more. 

Infra providers that offer RPC connections to the disparate aspects of Web3 will thrive. New projects need to choose an infra provider to build with, on a ready made architecture that links with many different blockchains, at a low cost. Ankr is one example of a prominent infra provider within Web3. 

Segment Survivor #3 - Data Storage

Anonymous, decentralized data storage is also going to be sorely needed as Web3 progresses. This is a certainty. Information always needs to be stored, but the problems with existing data storage are obvious. Companies like Facebook and Twitter store customer information in centralized databases. They are then hacked or (in the case of Facebook) sell this information to other companies. 

An alternative means of data storage is a requirement, because neither governments or corporations have proven trustworthy when it comes to safeguarding user information, either by negligence or inefficiency. Web3 projects can ensure that information is stored on a number of decentralized servers, and the architecture itself ensures both efficiency and data security. 

An example of this would be Web3.storage. Web3.storage is a suite of APIs and services that make it easy for developers and other users to interact with data in a way that is not tied to where the data is physically located. It uses identity protocols such as IPFS, Filecoin, and UCAN.    

Segment Survivor #4 - Gaming

Gaming remains one of the most highly invested sectors of Web3. We have been seeing the gamification of various industries. Gaming is not a side industry but is a viable means of income for younger generations, whether from investing in a plot of land in the metaverse or playing Axie Infinity to flip an NFT. There are many revenue generation models offered by Web3 gaming, including play to earn, share to earn, learn to earn, play and earn, etc. 

But gaming can take on new meanings when it comes to Web3. Our game, for instance, combining education with gaming by providing an interactive roman-themed metaverse to satisfy both. It is a real-world metaverse that university students and classical enthusiasts can engage in, and also provides a fun platform for generic Web3 gamers. 

Plus, virtual reality products are not so far away, which will provide an immersive experience in every sense of the world. The combination of a virtual environment with real rewards is a combination that ensures Web3 gaming will survive regardless of crypto market prices. It ties in too closely with fundamental elements of human nature. 

Making Sense Of The Crypto Market

It’s impossible to say for certain which specific businesses within an industry will survive. But it is certainly plausible to identify which broad sectors will win out, by looking at the existing market. 

We are in a cybercrime epidemic and the centralized server model has failed, being expensive, slow, and insecure. We need rapid changes in data storage, cybersecurity, and infrastructure. Web3 offers this. 

As for Web3 gaming, the figures speak for themselves, and interest in gaming is as high as ever. It even has the capacity to reach people who currently do not consider themselves gamers, especially when VR and AR elements are incorporated into an ecosystem that offer impressive rewards.