Web3 “Dead” Claim: Kyle Samani Points to DeFi and DePIN as the Real Use-Cases
Kyle Samani, Multicoin co-founder, says “Web3 is dead,” arguing that the broad “Web3” label has lost momentum. He adds that only DeFi and DePIN still have clear roles in crypto.
The comment sparked debate with Eli Ben-Sasson (StarkWare CEO, Zcash co-founder). Ben-Sasson says crypto is facing an “identity crisis,” noting that institutions and traditional finance are becoming more involved while long-time crypto figures leave. He argues this shift challenges crypto’s original narrative against banks.
Samani’s framing does not claim crypto is over. Instead, it suggests investors and builders are increasingly focused on measurable utility:
- DeFi remains central for lending, trading, and stablecoins.
- DePIN (decentralized physical infrastructure networks) connects token incentives to real-world systems such as wireless, storage, computing, and sensors.
The article also cites a wider market backdrop: tokenized assets and regulated rails are gaining attention, including expectations that mature DeFi protocols could handle much of tokenized-asset activity. Overall, it implies the discussion is moving from branding to proof in real markets.
For traders, the key takeaway is a potential rotation narrative: less emphasis on “Web3” as a category, more focus on DeFi liquidity and DePIN infrastructure plays.
Neutral
This news is neutral for overall market stability, but it may drive sector rotation. Samani’s “Web3 is dead” claim challenges broad “Web3” branding and could reduce speculative demand for generic Web3 narratives. At the same time, his endorsement of DeFi and DePIN reframes trading interest toward sectors with clearer utility (on-chain finance and real-world infrastructure token incentives).
Historically, similar narrative resets tend to create short-term volatility while capital reallocates (e.g., shifts from ICO-era hype to DeFi summer, or from pure “blockchain” stories to tokenization and stablecoin rails). Here, the likely impact is:
- Short term: choppier positioning as traders reassess which baskets outperform—DeFi liquidity plays vs. less-defined “Web3” categories.
- Long term: steadier differentiation if markets continue rewarding measurable adoption (DeFi usage metrics, DePIN infrastructure partnerships, and tokenized-asset throughput).
Because the article does not announce protocol failures or regulatory shocks—and instead argues about framing/utility—the broader market reaction is more likely reallocation than systemic risk.