A well-known crypto venture capitalist just dropped a bold statement that’s shaking up the blockchain world. Kyle Samani, co-founder of Multicoin Capital, says Web3 is dead. According to him, the grand vision of a decentralized internet never truly materialized. Instead, only two sectors are showing real promise today: DeFi and DePIN.
This isn’t just another weekend rant on Twitter. Samani was once one of Web3’s biggest cheerleaders. His change of heart signals something important: the crypto industry is finally growing up and shedding empty hype for real utility.
What Is Web3, and Why Is It Called “Dead”?
Web3 was supposed to be the next evolution of the internet. The idea was simple but ambitious: build a decentralized web where users own their data, control their identities, and aren’t at the mercy of big tech companies like Google, Meta, or Amazon.
But years later, most everyday people still don’t use Web3 apps. The user experience is clunky. Adoption is low. Many projects failed to deliver anything useful beyond speculation.
Samani put it bluntly: the broad Web3 vision has collapsed. He now believes blockchain is simply an “asset ledger” that will reshape finance—but won’t rebuild the entire internet as originally promised.
This isn’t the first time experts have questioned Web3’s future. A recent report found that 93% of Web3 gaming projects are now “effectively dead,” with roughly $12 billion in capital lost.
Why DeFi Is Still Alive and Thriving
If Web3 is “dead,” DeFi is very much alive. And for good reason.
Decentralized Finance (DeFi) lets people lend, borrow, trade, and earn yield on crypto assets without banks or intermediaries. It works 24/7, is permissionless, and already handles billions in daily volume.
Key reasons DeFi survives:
| Benefit | Why It Matters |
|---|---|
| No intermediaries | Cut out banks and brokers |
| Always open | Trade anytime, anywhere |
| Transparent | All transactions are on-chain |
| Real revenue | Protocols generate actual fees |
DeFi is the “financial layer” of Web3, and it’s already proving its value in the real world.
What Is DePIN, and Why Is It the Future?
If DeFi rebuilds finance, DePIN rebuilds physical infrastructure.
DePIN (Decentralized Physical Infrastructure Networks) uses blockchain tokens to incentivize people to build and share real-world infrastructure like:
- Wireless networks (5G hotspots)
- Data storage (like Filecoin)
- Cloud computing power (like Akash)
- Energy grids and sensor networks
Think of it as “hardware without giants.” Instead of Amazon Web Services or Verizon owning everything, regular people can contribute resources and earn tokens in return.
Samani sees huge potential here, especially in:
- Wireless networks
- Data storage
- Computing resources
DePIN is attracting steady investment because it solves actual problems and has clear revenue models.
Why Venture Capital Is Shifting Away from Web3
Money is talking. Venture capital funding for broad Web3 startups has declined sharply, while investment in DeFi and DePIN remains stable.
Why?
- Clear utility: DeFi and DePIN solve real problems
- Revenue models: These sectors generate actual income
- Measurable results: You can see infrastructure being built
- Less speculation: Investors want sustainability, not hype
Samani’s comments echo a wider industry identity crisis. Even StarkWare’s CEO recently announced a restructuring, signaling a shift away from pure Web3 ambitions.
Is Web3 Really Dead, or Just Evolving?
Some experts disagree with Samani. They argue Web3 isn’t dead—it’s just getting real. The speculative hype and “get rich quick” mentality are fading, and that’s a good thing.
What’s actually happening:
- Filtering out scams: Weak projects are dying
- Focus on utility: Real use cases are emerging
- Institutional adoption: Traditional finance is entering carefully
- Narrowing down: Only sectors with real value survive
So Web3 might not be “dead” in the literal sense. But the original dream of a fully decentralized internet replacing Big Tech? That vision has clearly failed.
What This Means for Crypto Investors
If you’re investing in crypto today, here’s what Samani’s statement suggests:
- Be cautious with broad “Web3” projects
- Focus on DeFi protocols with real users and revenue
- Watch DePIN as the next major growth area
- Ignore hype, look for actual utility
The crypto market is maturing. The days of throwing money at any project with a whitepaper and a slick website are over. Now, it’s about what actually works.
The Bottom Line
Kyle Samani’s declaration that “Web3 is dead” might sound dramatic, but it reflects a larger truth: the crypto industry is finally growing up.
The grand vision of a fully decentralized internet faded. But from that failure emerged two strong survivors:
- DeFi, which is rebuilding finance
- DePIN, which is rebuilding physical infrastructure
These aren’t just buzzwords. They’re sectors with real users, real revenue, and real-world impact. And that’s exactly what the crypto market needs to move forward.
