It is unusual to suppose that everybody might look ahead to downturns within the crypto market, however that is precisely the place of many builders and challenge builders who benefit from the low-pressure atmosphere that prevails throughout a bear market.

Because the saying goes, bear markets are for constructing, and now is likely one of the greatest instances to survey the panorama to see which sectors of the market are most energetic in shaping the platforms that may soar to new heights within the subsequent bull cycle will.

Here is a have a look at 5 sectors of the blockchain ecosystem that would provide a number of the greatest alternatives for accumulation whereas costs are low and demand is non-existent.

Layer 1 Protocols

Layer 1 (L1) protocols equivalent to Bitcoin (BTC) and Ethereum (ETH) kind the inspiration upon which a lot of the cryptocurrency ecosystem is constructed and allow most different sectors of the market to exist.

Nonetheless, not many choices are at present obtainable to launch different protocols on the Bitcoin community, and Ethereum has recognized limitations when it comes to scalability, which may end up in high transaction prices and sluggish processing instances.

Due to these elements, there stays a major alternative for different L1 protocols to determine themselves and seize a superb share of the market. The entire income generated by a protocol is a metric that can be utilized to find out which networks are experiencing probably the most utilization.

Cumulative complete gross sales for the highest L1 chains during the last 180 days. Supply: Token Terminal

Based on knowledge from Token Terminal, the highest 5 L1 protocols when it comes to complete earnings over the previous 180 days, excluding Bitcoin and Ethereum, are BNB Good Chain (BNB), Avalanche (AVAX), Helium (HNT), Fantom (FTM), and Solana (SOL).

Layer 2 Protocols

As talked about above, the Ethereum community has scalability limitations that won’t be resolved throughout the upcoming merge, leaving a gap for Layer 2 protocols to satisfy the demand by serving to to extend exercise which takes place instantly on the Ethereum blockchain.

Based on L2Beat, which tracks stats of prime Ethereum L2s, Arbitrum is primary when it comes to complete locked value (TVL), adopted by Optimism and dYdX.

Prime 8 L2 networks banned by complete. Supply: L2Beat

One community that has been oddly faraway from the listing offered by L2Beat however stays probably the most extensively adopted L2 when it comes to energetic wallets and launched protocols is Polygon (MATIC), which in response to knowledge from DefiLlama at present has a TVL of 1, $59 billion.

As for the Bitcoin community, the primary L2 resolution at present seeing elevated inflows is the Lightning community, however there is no such thing as a token related to the protocol. As a substitute, customers can select to run a node in the event that they need to assist the community and earn passive revenue.

To play

The gaming sector of the cryptocurrency ecosystem has confirmed to be one of many extra resilient in terms of retaining customers engaged throughout the present crypto winter.

The emergence of play-to-earn video games like Axie Infinity (AXS) helped highlight the chances of blockchain-based gaming throughout the bull cycle of 2021 and has develop into an offshoot of quite a few “-to-earn” video games Protocols equivalent to move-to-earn and learn-to-earn.

Knowledge from DappRadar reveals that a number of the prime video games when it comes to energetic customers are Alien Worlds, Splinterlands and Farmers World, all of which function on the WAX ​​community, whereas Axie Infinity is the highest recreation when it comes to the value of the video games in its Good belongings held is contract.

The highest six video games when it comes to at present energetic customers. Supply: DappRadar

There are additionally quite a lot of different video games nonetheless in improvement however nonetheless attracting quite a lot of consideration, together with Illuvium and Aavegotchi, in addition to tokens supporting gaming ecosystems equivalent to Enjin Coin (ENJ), Gala (GALA), and Extremely (UOS). .

social platforms

One sector of the cryptocurrency panorama that hasn’t actually taken off in any notable method, however represents a superb alternative to extend adoption, are social engagement platforms just like Twitter, Fb or Reddit.

Earlier frontrunners within the social media panorama embody Steem and its community-driven offshoot Hive, however neither protocol has actually seen widespread adoption but.

Whereas no different protocol at present in operation has managed to crack the code that pulls many customers who stay engaged for the long run, occasions all over the world, together with the continuing drama surrounding Elon Musk’s buy of Twitter, present that social media proceed to wish an brazenly accessible community-oriented platform.

Associated: 34% of gamers need to use crypto within the Metaverse, regardless of the backlash

Metaverse and NFT launchpads

A remaining sector value maintaining a tally of for its widespread attraction to mainstream society, together with efforts already underway to combine it into day by day life, is the Metaverse.

To simplify issues, the Metaverse is a digital actuality illustration of all knowledge and interactions that happen on the web, primarily based on blockchain know-how.

Whereas the idea of the Metaverse remains to be in its infancy, it’s a widespread matter of dialog within the crypto sphere and is already attracting giant investments from a number of the most well-known and well-known manufacturers on the planet.

10 Prime Firms Investing/Constructing within the Metaverse:
1.Microsoft
2. Meta
3.Tencent
4.Nike
5.Alibaba
6. Accent
7.Adidas
8.JP. morgan
9.Nvidia
10. Roblox

see the long run Plan forward. #Metaverse #web3 #blockchain pic.twitter.com/5JgOl1dlE4

— Upenyu (@AskUpenyu) February 16, 2022

In addition to Metaverse, platforms focusing on the creation and launch of non-fungible tokens (NFTs) also needs to be thought-about, because the NFT sector has confirmed to be widespread with most of the people.

Among the many most mature and widespread Metaverse and NFT platforms at present in operation are The Sandbox (SAND), which not too long ago partnered with Playboy to launch a MetaMansion social recreation on the platform, and Decentraland (MANA) and ApeCoin (APE).

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The views and opinions expressed herein are solely these of the writer and don’t essentially mirror the views of Cointelegraph.com. Each funding and trading transfer includes danger, you need to do your individual analysis when making a call.