The decline of a typical internet company often starts with delayed salaries, worsening finances, team dissolution, and finally, an empty office. In contrast, the decline of a blockchain project follows a different pattern: a continuous drop in token price, node shutdowns, no code updates for months, and an inactive official Twitter account. When two or three of these signs appear, the project is usually considered defunct.
Consider this: the last bull market began in November 2020, with over 8,000 digital currencies listed. Today, nearly 40% of those have "died" and been delisted from CoinGecko. This number is 2.5 times higher than in 2020 and 3.5 times higher than at the start of 2022.
While many projects fail due to internal issues, some manage to rebound against all odds. This article explores how certain projects navigated crises, reinvented themselves, and ultimately thrived.
Chainlink: How the Oracle Giant Almost Vanished
Chainlink, much like Ethereum, was born from a vision. Its development has been deeply influenced by its founder, Sergey Nazarov, whose background is strikingly similar to Vitalik Buterin’s—both come from Russian families and possess extraordinary talent in computer science. After discovering Bitcoin in 2010, Sergey found his calling.
In 2014, Sergey assembled a team to work on oracle technology. By 2017, Chainlink was launched. The idea was revolutionary, but it lacked a technical whitepaper. At the time, the ICO frenzy was at its peak. Projects could easily raise $20 million in a day with good marketing—some even sold out in minutes. Chainlink raised $32 million in September 2017.
Then the bear market hit. Token prices plummeted, and Chainlink’s official Twitter went silent. Despite holding millions, the team released no updates or promotional content. To the community, this seemed like a classic exit scam. Skepticism grew, and many early investors sold at a loss. This silence lasted almost a year—a period old-school crypto enthusiasts well remember. Many declared the project a scam.
But in 2019, the team suddenly became active again. They announced a series of positive developments: mainnet launch, partnerships with Google and Oracle, and a listing on Coinbase. Market sentiment shifted dramatically. LINK’s price surged to an annual high of $6.1, cementing its place among top cryptocurrencies.
However, the project faced another wave of criticism when a large token transfer sparked accusations of insider selling. Concerns about centralization also emerged, leading to widespread skepticism. Yet, the 2020 DeFi summer proved to be a turning point. Chainlink’s price soared to $52.7 in 2021. As of this writing, LINK is trading at $14.4, ranked 15th by market cap.
Looking back, the crypto market’s top rankings have always been volatile. As an older project, Chainlink’s ability to rise, fall, and rise again can be attributed to the team’s persistence. The silent period of 2019 was likely a time of intense development. Had the team given up, the oracle landscape might look very different today.
From EtherLend to AAVE: A Rebranding Success Story
Newcomers to crypto might not recognize the name EtherLend, but it’s the predecessor of AAVE. Launched in 2017 during the ICO boom, EtherLend raised $16.2 million.
Unfortunately, its peer-to-peer lending model was inefficient and suffered from low liquidity. Without a robust ecosystem, borrowed assets could only be used to buy more ETH—akin to holding foreign currency you can’t spend locally. Within a year, EtherLend’s token price crashed by 100x. Throughout 2018 and 2019, the price continued to decline steadily. Without drastic changes, the project would have faded into obscurity.
The pivotal moment came in early 2020. The team executed a bold transformation: shifting from a peer-to-peer model to a pool-based protocol, rebranding completely from EtherLend to Aave, relocating from Finland to London for regulatory compliance, and obtaining an EMI license in the UK. They also introduced innovative products like flash loans. The result? Aave’s token price surged by 170x in a year.
Today, Aave boasts over $6.4 billion in total value locked. It’s not only a DeFi leader but also a relentless innovator with a strong community. With ongoing development and a compliance-first approach, its future looks promising.
Key Factors for a Project’s Revival
Two critical elements can help a project rebound:
- Integrity and Execution: The team must be committed to building and improving the technology.
- Sustainable Utility: The project must have real-world applications to attract and retain users.
👉 Explore more strategies for identifying promising projects
Promising Tokens Showing Signs of Recovery
Here are a few tokens that have demonstrated potential for recovery:
- HNT: Originally an IoT project that peaked at $54.88 in the last bull market. Poor management led to significant losses for miners and investors. Recently, it has gained traction due to the DePIN narrative. Currently priced at $5.99, it could see 3–5x growth.
- FTT: After the collapse of FTX, speculation about a restart has kept interest alive. The token fell from $84.18 to $0.70 but recently rallied to nearly $6 on news about SBF. Any positive development could trigger a rapid price increase.
- PEPE: Despite early issues with insider selling, PEPE remains a popular meme coin. If market sentiment turns bullish, it could challenge its previous high of $0.00000431.
- MEME: This token has had a volatile history, but recent investment from Binance has stabilized its price. Currently at $0.0247, it has room to grow if the team capitalizes on its NFT expertise.
- NFT: APENFT, backed by Justin Sun, rode the NFT wave in the last cycle. Though down 94.2% from its peak, the project is still active. With upcoming TRON inscription support, it could see a price surge.
- GALA: Internal conflicts and scandals caused GALA to drop 96.8% from its high. However, the team continues to build. If they resolve internal issues, the token could rebound significantly.
Frequently Asked Questions
What is an oracle in blockchain?
Oracles are services that provide external data to smart contracts. They act as bridges between blockchains and the real world, enabling contracts to execute based on real-time information.
How did AAVE achieve its turnaround?
AAVE shifted from a peer-to-peer model to a liquidity pool system, rebranded, and focused on regulatory compliance. Innovations like flash loans also played a key role in its resurgence.
What makes a cryptocurrency project sustainable?
Sustainability depends on real-world utility, active development, and a strong community. Projects without these elements often struggle to survive market downturns.
Can meme coins like PEPE be a good investment?
Meme coins are highly speculative and driven by sentiment rather than utility. While they can generate significant returns, they also carry substantial risk.
How important is community support for a project’s survival?
Community engagement is crucial. It drives adoption, provides feedback, and can help a project recover from setbacks through collective effort and belief.
What should I look for in a recovering project?
Focus on teams with a track record of execution, clear use cases, and recent positive developments. Avoid projects with inactive communities or no tangible progress.
Conclusion
The crypto market’s volatility is both a challenge and an opportunity. For projects, survival requires adaptability, integrity, and utility. For investors, continuous learning and cautious optimism are key. By understanding the factors that contribute to a project’s revival, you can make more informed decisions and navigate the market with greater confidence.
Remember, the goal is to minimize losses during bear markets and maximize gains during bull runs—always stay vigilant and ready to adapt.