After another big collapse and market downturn, it’s easy to feel disheartened. Look behind the doom-laden headlines, though, and there are plenty of reasons to be positive!
#1 ETH is now deflationary
The long-anticipated Merge led to the equally long-anticipated post-Merge dump, but that was only a short-term problem. The Merge put an end to the creation of ETH as miner rewards. More tokens are now being burned than created. It might take a while for the effects to show... but deflation creates scarcity, which creates demand, which pushes prices higher in the long term.
#2 NFT sales are actually up
All those headlines about NFT sales plunging don’t tell the whole truth. Sales are down in terms of fiat value. However, the number of NFTs traded is mostly flat and in some cases even up. Tezos sales volume hit an all-time high in Q3 of 2022 and Solana's volume nearly doubled in September. The market is substantially stronger than many would have you believe.
#3 Big names are betting on crypto
Nike launched an NFT platform. Sony patented blockchain technology for PlayStation. FIFA operates a marketplace on Algorand. The list goes on and on. These huge, multimillion-dollar corporations are throwing their weight behind crypto despite the bear market. Even the UK government is working on an NFT project to showcase Britain's crypto future!
#4 Bad actors are being flushed out
Terra LUNA, Celsius and now FTX: just some of the latest casualties. While these losses are sharp shocks, they aren’t necessarily a bad thing for crypto long term. Many of these firms used capital poorly, were over-leveraged and promised unrealistic returns—FTX even gambled with customer funds! As these bad actors perish, more sustainable firms spring up. The result is a Darwinistic-style evolution of the crypto space to a safer, more responsible industry that's attractive to investors.
#5 Ripple is (possibly) going to win its court case
Ripple’s court case against the SEC looks like it could soon reach a favourable conclusion, setting a precedent for how crypto is classified and regulated. Should XRP avoid the dreaded "security" label, it will also avoid excessive regulation and encourage new investment. A court victory would likely see a massive price pump, dragging the rest of the market up too. Victory would be good news for all crypto, which invariably responds negatively to regulation.