A Deep Dive into 10 Protocols Capable of Surviving Bear Market Cycles

2022.12.23

A Deep Dive into 10 Protocols Capable of Surviving Bear Market Cycles

Few projects can survive and emerge stronger within a single cycle.

2022.12.23 - 04:39:32

UniswapChainlinkStarkNetArbitrum

Navigating Web3 tides with focused insights

Few projects can survive and emerge stronger within a single cycle.

A Deep Dive into 10 Protocols Capable of Surviving Bear Market Cycles

Written by: Aylo, Alpha Please

Translated by: TechFlow

When people say that 99% of cryptocurrency projects will die during bear markets, they aren't exaggerating. Very few projects can survive across a full cycle and emerge stronger.

Below are the protocols I believe have the potential to survive the bear market and come out even stronger.

A Deep Dive into 10 Protocols Capable of Surviving Bear Market Cycles

1. Ethereum

Delivery of PoS
Improved economic model reducing miner sell pressure (EIP-1559)
Lower inflation than BTC
Complete Rollup theory
Proto-Danksharding will deliver 100x scalability next year
Strong EVM network effects

2. Polygon

Real-world major brands choosing Polygon for deployment
Second highest daily transaction volume (all chains)
5.7 million traders on DEXs
Suite of scaling solutions makes Polygon a major L2 player (ORUS, ZK, and zkEVM)
zkEVM solution coming soon

3. Arbitrum

Fourth highest TVL (all chains)
Daily transactions and unique addresses nearing all-time highs
Over 500% growth in active developers
Most DeFi innovation happening on Arbitrum
Arbitrum Nova supports Reddit
Built a vibrant community

4. StarkNet

StarkNet Alpha launched on mainnet
98,000 users during Alpha phase
STARK software stack (sequencer, prover, verifier) powers dYdX, Sorare, and Immutable
Visa is experimenting with StarkNet
$100M Series D funding at $8B valuation (May 22)

5. Chainlink

Integrated with over 1,500 protocol applications
Built PFM
$600M total value secured via network
Economically sustainable multiple DONs
Long-term roadmap and still hiring
Monopoly in oracle space
Staking v0.1 live
CCIP will compete in cross-chain market next year

6. Uniswap

Leader among DEXs
67% market share (by DEX trading volume)
One of the most profitable protocols
Generated $230M in fees
Expanding into NFTs
Secured Series B funding in October

7. Aave

Leading borrowing/lending protocol
No major vulnerabilities throughout the cycle
Increasing adoption of Lens
GHO upcoming, which will increase revenue
UK FCA license (allows AAVE to directly handle fiat without relying on third-party intermediaries)