Crypto Market Downturn Feels Easier Than 2022, Says Dragonfly

Dragonfly Managing Partner Haseeb Qureshi says that the current crypto market downturn is far less severe than the crash in 2022. While prices have fallen and investor confidence has dipped, the market now has stronger foundations. This gives both investors and companies more stability compared with the last major crisis.

Looking Back: The Chaos of 2022

In 2022, the crypto world faced multiple major collapses. First, Terra’s Luna ecosystem fell apart. Then, big names like Three Arrows Capital (3AC), FTX, Genesis, and BlockFi went bankrupt. At the same time, the NFT market crashed. Additionally, some banks failed, and even stablecoins lost their pegs.

As a result, many investors panicked. Liquidity disappeared almost overnight. The market was in survival mode for months. Therefore, compared with 2022, today’s downturn seems much better and more controlled.

Why Today’s Market Feels Different

Firstly, there are no large-scale industry collapses happening now. Most major firms are now operational. Secondly, companies have learned their lessons from past failures. They now use less leverage and manage risks more carefully.

Furthermore, regulatory clarity has improved. While rules are still developing, businesses now understand the boundaries better. Finally, crypto infrastructure is stronger. Networks like Bitcoin and Ethereum continue to function smoothly. DeFi and other on-chain systems can deal with the stress without failing. Because of these factors, the current downturn does not threaten the system in the way 2022 did.

Strong Fundamentals Support the Market

Haseeb emphasizes that crypto still has strong fundamentals. Developers continue building new projects, and institutions steadily adopt blockchain technologies. User activity across networks remains active, while liquidity has improved in some key sectors.

Consequently, today’s downturn looks more like a temporary slowdown than a full-blown crisis. Prices may be lower, but the underlying system remains intact and resilient.

A Reset, Not a Collapse

In short, the market is adjusting rather than facing a crypto market downturn. Investors face volatility, but the risk of sudden, system-wide failures is lower. Compared with 2022, today’s environment is calmer and more manageable.

Haseeb’s perspective highlights that crypto has matured. With stronger systems, better regulation and improved risk management, the market can handle challenges more effectively. Therefore, while the downturn may feel uncomfortable, it also creates opportunities for growth and recovery. The industry is learning, evolving and proving it can survive even difficult periods.