Everyone’s crying over the crypto market’s downturn, with industry experts anticipating an extended bear market. However, the co-founder of the Ethereum layer-2 solution Polygon, Sandeep Nailwal, believes that the long-term picture of Web3 remains “mega-mega bullish.”
Nailwal said that the recent correction has more to do with “macro” than any key weaknesses in the Web3 sector.
Polygon co-founder expressed a bullish outlook for Web3
As TheCoinRsie reported, in April, Polygon announced the launch of Supernet chains with a $100 million allocation for Wbe3 developers, solidifying its belief in the sector.
In a recent Twitter thread, the co-founder of the company expressed a bullish outlook on Web3 despite the worldwide crypto chaos.
I rarely talk about markets but here is my take on all this chaos.
*Not financial advise*
1. This downturn has more to do with “macro” than any fundamental weaknesses in Web3. Long term Web3 remains mega-mega bullish, so newbies keep learning and builders keep building!
— Sandeep Nailwal | sandeep. polygon 💜 (@sandeepnailwal) June 14, 2022
“Long-term Web3 remains mega-mega bullish, so newbies keep learning and builders keep building,” he said.
While anticipating an extended bear market, Polygon co-founder said that if the US Federal Reserve can “remove” the market’s uncertainties, there may be some relief and that “there is a lot of dry powder sitting on the sidelines to bring in aggressive bull rallies.” However, given concerns about sticky inflation and stagflation, such a scenario appears unlikely.
A number of venture capital funds have raised considerable sums of money. Even though these companies will be more careful in their bet selection and acceptable values will be significantly lower, Nailwal believes that thesis-based VCs will continue to deploy. He also mentioned that the majority of them will participate in liquid markets.
After inflation reaches a peak in the coming 3-6 months, when the Fed raises rates, the Polygon co-founder predicts that markets will be able to find a bottom. Things will be back to normal only after that.
He also said that the projects that have a strong treasury with ample runway for 2-3 years and those that aim an aggressive growth through this time would have the potential to build generational value. He added:
“I can confidently say that Polygon is one such project; there are many others too.”
With massive expansion plans, Polygon USDC was launched on Circle to offer fast and cheap transactions last week.