Web3 is dead? Kyle Samani says only DeFi and DePIN remain

Kyle Samani contends that Web3 has failed as a concept, with only DeFi and DePIN (Decentralized Physical Infrastructure Networks) emerging as viable use cases. Concurrent warnings from Eli Ben-Sasson about an identity crisis in crypto suggest the industry faces fundamental positioning challenges and needs to refocus on applications with genuine utility.

Kyle Samani's declaration that Web3 is dead reflects a growing frustration within cryptocurrency circles about the gap between industry promises and actual delivery. The assertion that only DeFi and DePIN remain viable signals a market correction toward projects demonstrating concrete economic value rather than speculative narratives. This perspective matters because influential voices shape investor sentiment and capital allocation in early-stage sectors.

The Web3 boom of 2021-2022 promised decentralized internet infrastructure, gaming ecosystems, and social platforms that would challenge traditional tech monopolies. Instead, most ventures struggled with user adoption, regulatory uncertainty, and technical limitations. DeFi survived because it offers clear financial utility—permissionless lending, trading, and yield generation—while DePIN attracts capital by addressing real-world infrastructure needs through decentralized networks. These categories solve specific problems rather than pursuing theoretical transformation.

Ben-Sasson's parallel warning about crypto's identity crisis underscores that the sector lacks cohesive messaging about its purpose and value proposition. Projects abandoned branding themselves as Web3, pivoting toward AI, gaming, or infrastructure narratives. This fragmentation creates confusion among mainstream audiences and dampens institutional adoption.

The market impact extends to venture capital flows and startup strategy. Teams building speculative Web3 platforms face funding headwinds, while DeFi and DePIN projects attract institutional and retail interest. Developers now prioritize measurable utility over ideological positioning. Going forward, the crypto industry's viability depends on whether remaining sectors can sustain growth and deliver on practical applications rather than aspirational visions.

• →Web3 as a unifying concept has failed to deliver on its promise of decentralized internet infrastructure.
• →DeFi and DePIN represent the only crypto sectors with demonstrated utility and sustainable economic models.
• →The industry faces an identity crisis, with projects abandoning Web3 branding for more specific narratives.
• →Capital allocation is shifting away from speculative Web3 ventures toward applications solving concrete problems.
• →Institutional adoption hinges on crypto's ability to clarify purpose and demonstrate measurable real-world value.