This inequality is explained by several factors. Critics point to Web3’s vague definition and the difficulty of attracting a significant user base.
Regulatory uncertainty, especially regarding cryptocurrencies, also plays a role. As Underscore VC’s Richard Dulude explains, investors are waiting for clarity before re-entering the market. Macroeconomic factors such as rising interest rates increase the cautious mood.
Web3 faces internal challenges as well as external factors. Gillian Grennan, a professor at the University of California at Berkeley, points out the technology’s current user discomfort: “It’s still pretty cumbersome to interact with.” Until Web3 is launched and offers a compelling value proposition, mass adoption and renewed funding are unlikely.
Despite the decline, there is still a glimmer of hope. Dulude expects regulatory clarity to lead to “a shift from chasing growth to investing in growth.” This shift may result in prioritizing sustainable companies that solve problems in Web3 usage.
The question remains: Can Web3 evolve and overcome its technical hurdles? Can it deliver an experience that will appeal not only to niche enthusiasts but also to casual users? The answers to these questions will determine whether Web3 emerges from this winter or remains a cold prospect for investors and users alike.
Source: Ferra
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
