The seven signs of a bear market are:
1️⃣ _Supply of stablecoins increases while on-chain activity decreases_: When the supply of stablecoins like USDC or USDT or DAI rises without a corresponding increase in trading or protocol activity, it may indicate that users are pulling back and not preparing.
2️⃣ _DEX incentives rise, but volume does not increase_: When protocols boost rewards to keep traders around, but trading volume remains flat or declines, it may be a clear sign that users are not biting.
3️⃣ _Volatility rises without liquidity support_: When volatility increases but liquidity does not, it may mean that large moves are occurring in a shallow market, and there is not enough capital to absorb shifts.
4️⃣ _Fragmentation of token pairs across chains_: When token liquidity breaks in healthy markets, larger spreads and shallower pools appear, along with inconsistent pricing across chains.
5️⃣ _Smart money withdraws from liquidity providers and lending protocols_: When smart money pulls its investments from markets, it may signal a decline in confidence.
6️⃣ _New launch within 48 hours_: When new launches fail to attract interest or retain users, it may be a sign of declining market interest.
7️⃣ _Bridge flows to stable assets or rising centralized chains_: When users move to more stable assets or prefer centralized chains, it may indicate a lack of confidence in the market.
