How Do Bull Market Winners Become Successful? A Beneficial Guide for the Crypto Market Beginners

The crypto market is flourishing day by day and so many projects are being introduced in the market but not all get along the market. There are certain factors which play key roles in the success of the projects and backholding factors which decline the projects.

Market capitalization keeps reshuffling the top 100 cryptocurrencies due to various factors. Some projects get in top positions and make progress by leaps and bounds but some fail by not following the market trends.

Top cryptocurrencies can grow over 1,000% in less than a year, while the worst ones can drop continuously towards zero without pausing. This article will explain the concept of the bull market and explain the factor which boosts the bull market and make it successful.

What Is a Bull Market?

A bull market is a situation in which the price value of a certain market rises for a duration i.e., the stock market. Most economists define the bull market as the rise in the market by 20% after a decline in the market. Usually, the stock market prices, keep on fluctuating on an hourly or daily basis but in a bull market prices of a particular market keep on increasing for even a couple of weeks.  

What Is Required for Bull Market Winners?

There are certain things which a bull market winner needs to have to become a successful bull market winner. Big bull market winners have a set of common qualities which make them successful which we need to learn to become a successful and integral part of that bull market.

Innovation

The crypto space is fast-paced and full of potential. Countless crypto projects are being introduced in the crypto space but only a few projects truly change how things work. Some, like Solana (SOL) and Polygon (MATIC), tackled high fees and gained huge growth in the last market boom.

Projects like Brave and play-to-earn games also reshaped how rewards are distributed, showing strong growth in 2021. Innovation is key, but everlasting success requires more than just new ideas because ideas only help to grow firms if those are brought to practical grounds.

Adoption

The value of the crypto projects depends upon their demand in the market. Its price goes up if it is in demand and available in the market. But with too much availability even when that project is not in that much demand, its value goes down.

Also Read: Artificial Intelligence (AI) and Blockchain: Just A Hype or Reality? A Complete Guide

Many cryptocurrencies lose value because not enough people want them. However, a few cryptocurrencies show long-term growth. These successful ones experience more activity on their networks, like more users, transactions, and overall interest in the cryptocurrency.

Events boosting public trust and accessibility often drive cryptocurrency growth, especially for smaller crypto assets like Ethereum (ETH), Polkadot (DOT), and Terra (LUNA). On-chain data such as usage, fees, total value held, and number of users is crucial for investors to gauge adoption and make smart investment choices.

 Utility

Most cryptocurrencies are ‘utility tokens,’ meant to offer users some form of function. For instance, $LINK pays node operators, while $MANA works as a currency in Decentralized Finance (DeFi). However, many tokens lack real utility or struggle to gain recognition. Yet, a few projects that excel in token utility see rapid adoption, boosting demand and positively impacting their token’s value.

Narrative

The crypto market shifts due to recent events and long-term stories called narratives. These stories influence how people feel and operate in the industry.

Every year, a few strong narratives explain the best-performing crypto assets. They might be about a crypto’s value or its future potential. The projects leading these stories often do well and shape the industry.

Regulatory Environment

Cryptocurrency’s rules and regulations keep on changing and affect the crypto regulation. Rules can impact which digital assets succeed during a market boom. If regulators are against certain types of crypto, it can hurt those assets. But if they’re more open, it can help them grow.

Privacy coins struggled because many exchanges stopped supporting them due to tough rules, lowering their value. But when countries accepted Bitcoin (BTC), it became more trusted and useful. This made its trading better and got more people interested in it.