"Web3 is dead." Sounds dramatic, right? But it’s not what you think.
We’re not talking about price dips or bear markets. This isn't about Bitcoin's slump or NFT hype fizzling out. This is deeper — it’s structural. Cultural.
Let’s break down how Web3 lost its momentum, and why its rebirth might not even be called Web3.
1. Venture Capital: Fuel and Fire
VCs came running with billions. And like any gold rush, there were more picks and shovels than actual gold.
But here’s the problem:
- Money went to hype, not utility.
- Founders started building pitch decks, not products.
- Tokenomics were optimized for raising, not sustaining.
- And when the money dried up, so did the momentum.
- VCs bet on logos, not longevity.
2. Poor UX = No Adoption
Most Web3 apps look like a hacker’s playground.
Here’s what users were (and still are) expected to do:
- Install a wallet extension
- Buy ETH to pay gas fees
- Understand what gas even is
- Sign scary popups with no idea what they mean
That’s not user-friendly. That’s user-hostile.
Compare that to logging into TikTok or Venmo. No contest.
If grandma can’t use it, it’s not ready.
3. Devs Building for Devs
We all love devs. But let’s be honest: A lot of Web3 tools were made for impressing other devs on Twitter/X.
What we got:
- On-chain everything
- Complicated DAOs with no clear purpose
- Protocols with 300-page docs and zero onboarding help
What we needed:
- One-click experiences
- Invisible infrastructure
- Simple value delivery
When you build for clout, you lose the crowd.
4. The Great Fragmentation
Ethereum gas fees got high? Cool, let’s build an L2. Then another. Then another. Then 14 more.
Today:
- Users are confused
- Assets are siloed
- Devs are overwhelmed with bridges and wrappers
We promised a decentralized internet, not a dozen competing ones.
The fragmentation fatigue is real — and it’s pushing users away.
- The Next Wave Won’t Call Itself Web3
Here’s the twist: Web3 isn’t dying — it’s evolving.
You know what’s winning?
- Apps where crypto is under the hood, not in your face
- Products that say "Pay in USDC" without mentioning blockchains
- Tools that feel like fintech, not DeFi degen chaos
This new wave of builders doesn't care about ideology. They care about experience.
And they’ll win — not by preaching Web3, but by skipping the label entirely.
TL;DR:
Web3 didn’t fail because the tech sucks. It failed because:
- It chased hype over help
- It forgot real users exist
- It became a circle of devs clapping for each other
The next phase? It’s coming. But it’ll be quiet. Invisible. Embedded.
And it probably won’t even call itself Web3.
Are you building in this next phase? Drop your thoughts or projects in the comments. Let’s build for humans, not just headlines.
Top comments (1)
This is not a bug, it’s a feature. I think it’s worth starting with the fact that the whole “need for decentralization”, at this stage of society’s development, will find little understanding among grannies. However, it could become more popular in the near future, for example, if traditional forms of saving become unreliable. Or, let’s say, if there is a need for an alternative to traditional means of exchange.
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