Web3 as a sweeping vision may be dead, but two specific blockchain sectors are proving their staying power: decentralized finance (DeFi) and decentralized physical infrastructure networks (DePIN). While most Web3 projects have struggled to maintain users and deliver meaningful activity, DeFi and DePIN continue to handle billions in value and demonstrate genuine demand from real users, according to recent commentary from a top figure in the crypto industry.

What Happened to the Web3 Dream?

The broader Web3 movement, which once promised to decentralize the internet and reshape how we interact with digital services, has largely failed to gain widespread traction. Kyle Samani, chairman of Solana Treasury, stated that Web3 as a broad concept has not achieved the adoption many hoped for, with most projects struggling to maintain users or deliver significant activity. This assessment reflects a shift in how the crypto community evaluates blockchain technology, moving away from grand narratives toward practical, measurable results.

The market is now favoring blockchain sectors that produce tangible outcomes over ambitious but vague Web3 promises. This pragmatic turn suggests that investors and users are increasingly focused on what blockchain technology can actually do, rather than what it theoretically could do.

Which Blockchain Sectors Are Actually Thriving?

Despite the broader Web3 downturn, two specific areas continue to demonstrate real demand and user engagement. DeFi, which allows users to lend, borrow, trade, and earn yields without traditional financial intermediaries, has maintained billions in total value locked across various protocols. DePIN, which refers to decentralized physical infrastructure networks that use blockchain and cryptocurrency to coordinate real-world infrastructure like compute power, storage, and connectivity, is also gaining momentum as a practical application of blockchain technology.

Beyond these two sectors, tokenized real-world assets (RWAs) are emerging as another area of genuine interest. RWAs represent physical or financial assets, such as real estate, commodities, or bonds, as digital tokens on a blockchain. Institutions are increasingly seeking out RWAs because they offer transparency and enable blockchain-based settlements, which can reduce friction and costs in traditional asset markets.

How to Understand the Difference Between Hype and Real Adoption

• Measurable User Activity: Real blockchain sectors demonstrate consistent transaction volume and active user engagement, not just theoretical potential or marketing promises.
• Institutional Interest: Sectors like DeFi and RWAs are attracting serious interest from traditional financial institutions seeking practical benefits like transparency and efficiency.
• Sustained Value Flow: DeFi and DePIN continue to handle billions in value, indicating that users trust these systems enough to deploy real capital into them.

"Web3 as a broad concept has failed to gain widespread traction, with most projects struggling to maintain users or deliver significant activity. Instead, decentralized finance (DeFi) and decentralized physical infrastructure networks (DePIN) continue to show real demand and user engagement, handling billions in value and offering practical blockchain applications," stated Kyle Samani, chairman of Solana Treasury.

Kyle Samani, Chairman of Solana Treasury

This shift in market sentiment reflects a maturing crypto industry. Early Web3 enthusiasm was driven partly by the belief that blockchain could revolutionize nearly every aspect of digital life. However, as the market has evolved, it has become clear that blockchain's real value lies in specific use cases where decentralization, transparency, or programmability solve genuine problems. DeFi addresses the need for financial services that operate without traditional gatekeepers. DePIN tackles the challenge of coordinating distributed computing resources. RWAs bridge the gap between traditional assets and blockchain infrastructure.

The takeaway for crypto observers is straightforward: the era of vague Web3 promises appears to be ending, replaced by a focus on sectors that deliver measurable results. This may be disappointing for those who believed blockchain would transform the entire internet, but it suggests a healthier, more sustainable path forward for the technologies and projects that can prove their real-world utility.