Note that the collapse of the cryptocurrency market as a whole has been dragging on for quite some time. In particular, Bitcoin set its all-time high of $69,000 on November 10, 2021. Since then, the major cryptocurrency has lost 70 percent of its price as of today.

Here’s how the value of digital assets has sagged since that day. What is noticeable here is that among the top coins by market capitalisation, BNB has suffered the least.

Changes in the value of top cryptocurrencies since Nov. 10, 2021

Experts agree that the current period is an ideal one for blockchain projects to develop into the runners-up in the next growth phase. Obviously, many crypto investors will also take advantage of the downturn in prices.

Why a collapse in the cryptocurrency market is a good thing

Tapscott stressed that it’s important to look not just at market prices, but also at the underlying fundamentals of certain blockchain projects. Here’s his rejoinder in which he shares his view of the situation.

Cryptozyme is always the best time to delve into the core concepts of the crypto market, do some work on the mistakes and build for the future. The latest bearish trend has brought us the NFT revolution, decentralised finance, stabelcoins and Play-to-Earn games.


In other words, the expert makes it clear that the work done by developers on the previous bearish trend has led to the formation and development of new components of the blockchain world. Certainly, NFTs represented by CryptoKitties were popular during the growth phase of the market in 2017, but the cryptocurrency ecosystem was far less advanced then. And there weren't a lot of user-friendly trading platforms for the new asset class back then.

Accordingly, developers will now also continue to work on their projects, which will shape future trends in one way or another.


Ninepoint Digital Asset Group managing director Alex Tapscott

According to Cointelegraph sources, the current bearish trend will also pave the way for the full potential of “new decentralised internet” projects – Web3. As an example, Tapscott noted that the decentralised finance (DeFi) sector could develop further and continue its journey as the financial system of the new internet. The expert continues.

If Bitcoin was the spark for the financial services revolution, then decentralised finance is an accelerator of innovation. The new trend will destroy many firms that fail to innovate and adapt.

Investors should pay particular attention to the development of decentralised autonomous organisations (DAOs). According to Tapscott, DAOs will complement corporations as a method of organizing business resources in a wide variety of areas.


Note that at times these autonomous organisations have been at the centre of scandal. For example, in June, the DAO of the Solend project decided to gain access to the wallet of a major investor whose position could bring down the entire coin industry. They planned to gradually sell off the user's crypto in order to avoid a disaster in the market as a whole. Fortunately, common sense took over and as a result, the idea was forgotten. Read more about the situation in a separate article.


Alex points out that market players should not pay attention at all to loud statements in the media about “serious problems” in the crypto market. In this case, he is referring to unsubstantiated predictions of a complete collapse of Bitcoin. Here’s the cue.

The most successful people in the cryptosphere are those who stay calm and keep working. I don’t know when this decline will end, but I’m pretty sure that like all previous cycles, it will definitely come to an end at some point.

Cryptocurrency growth

In the end, the expert hints that regular crypto investors should focus on the long term and not try to speculate in coins right now. Alex believes that the market will definitely grow, but it will take time. It may take a lot of time – especially given the difficult macroeconomic situation. But once the prospect of stability in trading in traditional assets is on the horizon, Bitcoin will become a very popular investment again, along with other coins.

Crypto market capitalisation falling from early 2022


We think this approach sounds very logical given the historical behaviour of the digital asset industry. After all, previous phases of coin collapses ended sooner or later and were replaced by bullruns. However, it is important to realise that not all projects return to their former highs, and some even die. So the choice of coins to invest in should be approached as responsibly as possible.