“Current Bear Cycle To Last Through 2022”, Algorand Foundation CEO Projects.
The CEO of the Algorand Foundation predicts that the current bear cycle will last until the end of 2022.
Over the last 5 months, crypto markets have been on a downward spiral with the exception of a brief recovery period around the end of March and the start of April. According to Algorand Foundation CEO Staci Warden, the storm is not yet over.
Since the start of the year, the total market capital has experienced a 43.5% drop from $2.189 trillion to $1.237 trillion as per CoinMarketCap. During this period, Bitcoin (BTC), Ethereum (ETH), and many other top altcoins, including Algorand (ALGO), have incurred massive losses.
In an interview with CoinDesk TV on Thursday, Warden projected that the “bearish cycle” will likely continue at least until the end of this year.
Warden spoke on the current state of the market saying, “Nobody loves the bear market […] but it is an opportunity for the market to separate the weak from the strong. This [bear market] will last at least through 2022, I think.”
According to Warden’s observations, some blockchain projects (especially those without practical use cases) may not survive this period but added that the Algorand ecosystem will not have a problem surviving the market conditions.
Warden highlighted how Algorand is investing and positioning itself for the long-term as a builder to survive as she said,
“Protocols, initiatives, and developers that are meme-based and don’t have real-world applications may or may not survive the crypto winter.”
Algorand has already been named FIFA’s official blockchain partner and Warden disclosed how the company is looking to lock down many more partnerships like this.
The Algorand Foundation recently announced a $1 million fund to help Terra developers migrate following the recent Terra ecosystem collapse. Warden also spoke on the Terra incident noting that algorithmic stablecoin projects will advance unaffected by the collapse.
Through these partnerships, Algorand aims to enhance financial inclusivity and tap into multiple unbanked populations and solve problems plaguing the African continent for long-term sustainability.