The higher the price of bitcoin -> more influx of users into the crypt, which spread to other dapps and make revenue for web3 startups.
Lower bitcoin price -> more outflow of users, and given the peculiarity of many companies to be dependent on commissions, then revenues are falling.
Each growth-fall cycle has a Retention and some of the users stay and form adherents. These are the same survivors who become stronger and help to onboard others or create their own startups. On growth, they mainly earn money, on the fall they pump skills or improve the product, reflect and draw conclusions.

Your business model cannot be sustainable until bitcoin is sustainable. And the volatility is crazy. x20 growth and -85% fall, for altcoins it can be x100 and -95% -99%. This correlates with income, which often depends on secondary sales, commissions.

Therefore, most startups in an attempt to quickly scale on the bull run then fail because. unable to cope with bloated budgets and depreciation in a bear market that can last an average of 2 years, but may be longer. Only those who are very flexible and quickly respond to market conditions and quickly cut costs survive.

The same Axie Infinity in 2021 from July to December earned about $500k - $1 million per day. Now $9k-$10k a day. This is clearly not enough to keep the team.

What can be useful for startups?
– Consider the timing of the project launch;
– Create a treasury and set aside windfall profits for several years in advance in order to go through the crypto winter more gently;
– The team must have a person who understands the cryptocurrency market and the course dynamics;
– Work on the sustainability of your business model and diversify your revenue streams.