Multicoin co-founder Kyle Samani has declared Web3 dead, stating that only DeFi (decentralized finance) and DePIN (decentralized physical infrastructure networks) remain as viable crypto sectors. According to reports from X, Samani made this comment in response to a broader debate started by StarkWare CEO and Zcash co-founder Eli Ben-Sasson, who noted that crypto appears to be experiencing an identity crisis. Samani, who remains one of the better-known investors linked to Solana, Helium, and other crypto infrastructure plays, stepped back from Multicoin's day-to-day work earlier in 2026 but continues to speak about crypto markets. The term Web3 emerged as a catch-all description for a decentralized version of the internet built on blockchain technology, encompassing decentralized social networks, blockchain gaming, and digital ownership via NFTs. In a recent exchange captured by community users, Samani wrote that he "once believed in the Web3 vision" and in dApps, but "now I don't." Instead, he argued that blockchains are "essentially asset ledgers" that will reshape finance and that DeFi and DePIN are the only real growth areas left.
Ben-Sasson's comment reflects a fundamental shift in crypto's positioning, as he pointed to several long-time crypto figures leaving while institutions and traditional finance firms show increased interest. As reported by X, this change challenges crypto's core story because the sector once positioned itself against those same institutions. The famed founder pointed out a contradiction that he said was confusing what crypto stands for: "On the one hand, several long-time OGs have left, and on the other, we're finally seeing some love from institutions and TradFi, which is everything crypto has rebelled against." Adding: "It's challenging crypto's core narrative." Ben-Sasson noted that this phase follows a long bear market, heavy ETF outflows from Ethereum and a visible lack of leadership across major projects. He argued that many of the harshest attacks on Ethereum come from early insiders who built it and now feel let down, even as the protocol remains, in his view, the "best of the worst" options for a global settlement layer. Therefore, he thinks developers will not abandon Ethereum, but they do need to update its story for a world where Wall Street is no longer an outsider.
Samani's comment positions DeFi and DePIN at the center of crypto's future, with DeFi covering lending, trading, stablecoins, and other financial tools that run on blockchain networks. According to recent market reports, DePIN has become a clearer market category, with projects aiming to connect blockchain rewards with real infrastructure instead of focusing only on digital apps and token communities. Standard Chartered has projected large growth in tokenized assets by 2028, with mature DeFi protocols expected to handle much of the activity. The market now favors blockchain sectors that produce measurable results over grand Web3 narratives, with tokenized real-world assets (RWAs) gaining interest from institutions seeking transparency and blockchain-based settlements. The comments come after several other high-profile figures in the space have claimed that "most of crypto is dead," a sentiment that has proved troubling for many industry traders. Samani's focus on DeFi and DePIN suggests most real value will come from on-chain markets, stablecoins and infrastructure that moves real assets, data and connectivity, not from games and social apps trying to "Web3-ify" everything.
The stronger role of institutions has fundamentally changed how crypto approaches adoption, with banks, asset managers, payment firms, and trading companies now playing a larger part in the market. As reported by X, this creates tension for builders who view crypto as an open alternative to the financial system, while also providing crypto projects with new sources of liquidity, users, and regulated products. Samani's post did not argue that crypto itself is finished, but suggested that broad Web3 branding has lost force, while DeFi and DePIN still offer clearer use cases. Despite accelerated adoption and capital inflows, the sector's early ideological distance from mainstream finance has blurred, with the new route of major banks and centralized systems arguably going against crypto's foundational principles. Ben-Sasson's "TradFi bear hug" idea implies big institutions will use blockchains as plumbing for a new financial stack, rather than as a revolt outside the system.
The dismissal of Web3 reflects a broader market maturation, with venture capital funding for Web3 startups significantly declining from their 2021-2022 peak, while investment in DeFi and DePIN protocols has remained relatively stable. Samani's firm, Multicoin Capital, has been a prominent investor in both sectors, including projects like Helium (DePIN) and various DeFi protocols. The narrowing of focus to DeFi and DePIN suggests a shift from ideological ambition to functional utility, with capital and talent concentrating on applications with clear revenue models and real-world use cases. While some projects in decentralized applications like gaming, social media, and identity continue to develop, they face significant hurdles in user adoption and scalability compared to centralized alternatives. The declarations from Samani and Ben-Sasson reflect a critical inflection point for the crypto industry, with the vision of a fully decentralized web potentially fading while pragmatic blockchain applications in finance and physical infrastructure appear to be gaining solid ground.
