These 3 crypto projects are growing despite the bear market

There is no denying that we are in a bear market. The prices of many crypto tokens have collapsed massively in recent months and the mood on the market is extremely bad. Nevertheless, there are bright spots even in a bear market: on-chain data can and do show which projects are currently defying the downtrend.

What is crypto on-chain data analysis?

On-chain data analysis is a common practice in the crypto space, where one evaluates blockchain data to draw conclusions about how a given network or decentralized application is performing.

This analysis can provide valuable insights into a variety of things, such as the number of users on a project, the number of transactions, and the general direction that a particular project is moving.

By examining this data, investors and analysts can gain a better understanding of crypto projects and thereby make better investment decisions. Below we look at three projects that are defying the negative market sentiment.

1. Rocket Pool (RPL)

Rocket Pool is an Ethereum liquid staking protocol that has grown rapidly over the past few months. Liquid staking protocols like Rocket Pool allow users to stake cryptocurrencies like Ethereum without the need for any technical know-how or hardware.

How liquid staking works: Investors contribute a token (such as ETH, SOL, or DOT) to a protocol that stakes on their behalf. In return, investors receive a so-called liquid staking token. This offers them a 1:1 claim to their staked tokens and automatically generates staking rewards.

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As Dune’s on-chain data shows, since the successful Ethereum merge on September 15, more and more investors have decided to stake their ETH via Rocket Pool.

While this is a cumulative development, it still suggests that Rocket Pool’s adoption is growing. More than 150,000 ETH are now being staked via Rocket Pool. In the last 30 days alone, RPL has increased by over 30 percent.

For comparison: In September this number was just under 75,000. This means that the number of rETH has doubled within three months. This makes Rocket Pool the second largest DeFi liquid staking protocol in crypto space after Lido Finance.

2.Sound

Another protocol that Dune data shows is growing rapidly is the Music NFT Platform Sound. According to on-chain data, the number of songs mined on the platform hit an all-time high in October and then doubled in November to more than 12,000 music NFTs mined in one month. This represents an increase of more than 240 percent from the previous record set in April 2022.

In addition to the growth of mined songs, the Number of new traders increased on sound. 1,442 new traders were added in November, bringing the total number of music NFT traders to 6,500. In January 2022, this number was still 584 dealers. However, Sound does not yet have its own token.

3. Lens Protocol

Lens Protocol is another crypto project that is defying the bear market and has seen growth over the past few weeks. The Web3 social media platform was able to increase the interactions on its platform – measured by the number of posts, comments and retweets – to around 370,000 per month. This means that the number of interactions has almost doubled compared to October.

Additionally, the number of monthly active Lens profiles hit a new high in November and is now at around 99,000 profiles. Lens Protocol’s success suggests that decentralized social media platforms are growing in popularity. Like sound, the lens protocol does not yet have its own token.

Although there is no guarantee that these projects will continue to be successful in the future, they have been able to grow despite the difficult market phase. As such, they might be worth keeping an eye on.