Layer 2 Scaling solution Polygon’s co-founder Sandeep Nailwal, stated on Tuesday that the current market downturns will affect Web3’s development only temporarily.
He believes the drop is attributable to macro issues rather than any inherent Web3 shortcomings.
Moreover, he seeks to rekindle investor trust by stating that he believes Polygon will weather the storm. However, despite a rise in Web3 ambition partnerships, Polygon still has a long way to go.
In fact, since the beginning of the year, the Polygon has lost 66% of its total value locked (TVL). Polygon’s TVL was over $5.44 billion on January 1, and it declined to around $1.82 billion on June 14.
Polygon co-founder believes bear market won’t last long
Polygon’s co-founder Sandeep Nailwal, expressed his thoughts on the crypto market crash and its influence on the Web3 in a tweet on June 14. He believes the bear market will last a long time, but that once the Federal Reserve removes the uncertainty, a tremendous bullish recovery would occur. However, given sticky inflation and fears of stagflation, Nailwal believes the chances of it happening are slim.
Sandeep Nailwal, speaking about the private market, said:
“A lot of VC funds have raised a LOT of capital, even though they will be careful in selecting their bets, and acceptable valuations would be much lower but I expect the thesis based VCs to keep deploying. Most of them will also play in liquid markets.”
He believes that projects reaching product-market fit (PMF) will be able to raise funds, but that those that haven’t should focus on surviving, taking consultancy work, and decreasing expenses.
According to Sandeep Nailwal, projects like Polygon can create generational value because they have a robust treasury with plenty of funds to sustain a project for 2-3 years. Large investors will return to crypto in 3-6 months after the Fed has hiked rates by 50-75 basis points 2-3 times, and markets will be able to return to normal.
MATIC plummets almost 85%
Polygon’s MATIC token has dropped almost 85% since the beginning of the year due to market pressure. MATIC began the year with a trading price of $2.53 and has recently dropped to a 52-week low of $0.3985. The price of MATIC is now $0.42 at the time of writing.
