Bear Market Could Crash Several More Cryptos After Terra, Experts Say

The year 2022 has registered a major drop in the total valuation of the Global cryptocurrency industry. However, the recent collapse of the Terra chain has raised many questions about the reliability and future of other digital assets. This event has even incited worldwide regulators to make the necessary actions to prevent such future incidents.

Will crypto market collapse further?

The latest edition of the World Economic Forum (WEF) saw a major difference from the last one back in 2020. However, the talks over cryptocurrency still rule the conference but for different reasons. As per data, more than 19,000 crypto tokens are floating on different exchanges globally. Meanwhile, many digital assets industry giants believe that the current state of the market seems to be uncertain.

According to a CNBC report, a summary of all discussions saysthat we might not see many tokens which exist now, in near future. While it would be important to watch over the existing stablecoins in the bear market conditions.

Brad Garlinghouse, Ripple’s CEO, mentioned that there may be few digital tokens left in the time ahead. He added that there are about 180 fiat currencies right now. There is not much need left for that many tokens now. Meanwhile, Ripple is still involved in a lawsuit against the US SEC over the nature of its native tokens XRP. It is expected that the outcome of this case may change the outlook of the commission regarding cryptocurrency.

Bear conditions are good for market?

Bertrand Perez, head of Web3 foundation, compared the current state of the market with the early internet era. He mentioned that there were many scams and a lot of things were not bringing any value to the market. Perez added that we are in a bear market and it’s good. This will clear the air from the people who were in the market for bad reasons.

While Jeremy Allaire, CEO of Circle, said that terraUSD collapse made it clear that not all stablecoins are equal. This will help the people to identify the well regulated and fully backed tokens.