Seasoned crypto researcher and former digital assets lead at ARK invest, Chris Burniske, explained what will be special about the next bear market in cryptocurrencies.
Brace yourself for big tests
According to Mr. Burniske, the imminent decline of crypto asset prices will be a true disaster for the segment of decentralized financial protocols (DeFis).
The whole segment is going to witness the "biggest tests" and most painful moments once the prices turn deep red.
According to leading DeFi analysis dashboard Defipulse, more than $65 billion are locked in multiple DeFi applications as of today. That means that the net TVL of the segment more than quadrupled in the last four months.
The segment of digital collectibles or non-fungible tokens (NFTs) should also get prepared for some sensitive moments. The way its liquidity will "dry up" will shock people with a "limited perspective."
Mixed prospects for DeFis and NFTs
Chris Burniske is far from being lonely in his forecasts about DeFis and NFTs. As covered by U.Today previously, iconic investor Naval Ravikant shared his mixed feelings about NFTs.
He claimed that only a few of them will be really valuable in the long run.
Also, Binance CEO Changpeng Zhao predicted amidst the mid-2020 DeFi euphoria that the vast majority of decentralized financial protocols will fail.