27.01.202219:30 Forex-elemzések és áttekintések: 80% of DeFi apps could vanish if crypto bear run lasts. South Korea to become cryptocurrency powerhouse

The cryptocurrency market reacted to the outcome of the FOMC meeting with a drop. Its total crypto capitalization fell by 3% to $1.68 trillion. Despite a temporary lull, fears in the cryptocurrency market continue to constrain the price of digital assets. Speculation about the start of crypto winter is growing. According to DappRadar, the crypto bear run could drastically change the cryptocurrency industry.

If so, 80% of DeFi apps could vanish, Pedro Herrera, senior data analyst at tracker DappRadar, suggests. His point of view is confirmed by the data that shows a $40 billion decrease in funds blocked in decentralized apps, or dapps, due to a correction. Applications and services with relatively small amounts of funds were the first to suffer. The analyst assumes that in case of a prolonged bear run, more decentralized apps will lose funds. Ultimately, only the largest platforms will survive when the bearish cycle ends.

Despite the alarming forecasts, the DeFi industry is still in demand. Apps based on a new generation of altcoins, such as Cardano, Polkadot, Solana, and Avalanche, are expected to see a significant increase in investments. Meanwhile, the number of XRP and ETH-based apps will continue to decline. However, in the event of a crypto winter in 2022, decentralized apps based on ether have a greater chance to survive as they are in high demand and more attractive for investment. The government control of the DeFi industry will allow projects to receive additional funding and incentives from states. Anyway, these are just plans for the future and not the reality of the coming years.

Meanwhile, South Korea is ahead of the whole world when it comes to the introduction of cryptocurrency technologies into everyday life. In the near future, investments in the country are expected to increase thanks to the creation of a regulatory framework and a favorable environment for the development of crypto projects. According to the BCG report, the market capitalization of the crypto market in South Korea will reach $1 trillion by 2026, and the annual growth will be 20%. As of January 2022, South Korea has a number of restrictions in terms of the development of cryptocurrency projects, as well as tax regulations. Owing to the rapid growth of crypto users in the country, South Korea may soon become one of the leading countries in terms of crypto regulation.

Sentiment in the cryptocurrency market is similar to the one in the stock market. Bitcoin has become a full-fledged member of the world's top indices club, along with the NASDAQ and S&P 500. The record correlation confirms that. As long as major players do not react to drawdowns - they have accumulated more than 40K BTC and 200K ETH over the past three weeks - the technical picture remains uncertain. Bitcoin approached the $39K-$40K mirror level and, as expected, failed to break it. Eventually, it went down to $35K. If Bitcoin falls below $30k, which is unlikely, then the market correction will be delayed.