What cryptocurrency does perform well during a bear market?

in cryptocurrency •  21 days ago

View the original post on Musing.io

Cryptocurrencies with high natural demand.

Cryptocurrencies that have high natural demand, that is, cryptocurrencies that have an actual use case for which there is a high demand generally do well in all market scenarios. 

If a crypto is needed for buying say, advertisements on a platform or a cryptocurrency that gives access to cheap cloud storage compared to its competitors will most likely have a strong foundation and less volatility.

The reason I say most likely is because of the often recurring pump and dump price manipulations. Even these strong coins sometimes get pumped hard because of speculative investments.

Let me give you an example. For this example, I will discuss BAT (Basic Attention Token) and BNB (Binance Coin). 

BAT is a token used in the Brave browser. The brave browser has over 3 million monthly active users. The BAT token has performed quite well compared to other tokens in the last few months. It is down 75% from all time high while most other cryptos are down 80% or higher. 

BNB is used in Binance exchange which is one of the largest exchanges. Those who pay fees using it get a discount. It is down only 53.17% from its all time high of  $24.37. It is still down a lot but compared to other cryptos, it is doing much better. 

The stats I mentioned here are from coingecko.com (calculated at the time of writing this post).

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