Is Web3 Just Getting Started or Already Peaking?
This week, we held a poll on X asking our community what they think the future of Web3 will be, whether it has hit a peak and is downhill from here, or whether we’re just getting started. The results were an almost even split, with 49.1% of people saying it was just getting started and 50.9% saying it was downhill.
It mirrored the fear and greed index of the cryptocurrency market, which, at the same time as the poll, was 52 on a scale of 100, which is neutral or undecided. In a telling sign, this shows that our community reflects the general feeling of the market about the future of Web3.
This is because there are many reasons to feel optimistic and also many to feel discouraged. It’s been a long, hard crypto winter, and our emergence into the spring has been confusing.
When the US approved spot Bitcoin ETFs, there was an incredible amount of excitement and hype in the market, with many people feeling the bull run was back. As we approached the halving, Bitcoin kept smashing through price barriers to set new all-time highs.
Then came the inevitable correction, and although Bitcoin’s drop wasn’t as violent as in previous cycles, it whipsawed much of the altcoin market back to the lows. People were as confused and exhausted as their portfolios, so there were plenty of reasons to feel down about Web3.
However, a fundamental point to realize when basing predictions on price action is that this cycle is different from previous ones. Not only do we now have US-approved spot Bitcoin ETFs, but we also have Chinese-approved ones in Hong Kong.
Additionally, the technological development of Web3 since the last bull market is incredible. Account abstraction, for instance, means that projects such as Zesh can automatically create wallets for users and take care of the technical complexities, hiding them behind an easy-to-follow user interface.
The rapid development and scaling of AI systems have also pushed the envelope of what can be achieved. At this point in the cycle, there are many reasons to be optimistic.
What happened with the pre-halving surge in price is that people’s expectations rapidly grew. They should have remembered that the real bull market begins months after the halving, not before.
It’s akin to the weather warming up too quickly after winter and being followed by an inevitable cold snap. It confuses hibernating animals and spring plants, often with harsh results. The same thing has happened to Web3.
Just as seasons follow cycles, so do markets. When you consider metrics such as on-chain data and social media data, Web3 is precisely where it’s meant to be at this point in the cycle.
For us here at Zesh, it’s not surprising; it’s playing out exactly as expected, and we’ve been planning accordingly. When the bull run starts, and Web3 becomes flooded with new people and projects, we’ll be primed to capitalize on the new growth with the apps we’re busily creating.
Don’t worry if it feels a bit bleak or uncertain – that’s normal for this point in the cycle. Instead, focus on what will happen in the coming months as we look forward to some incredible achievements in the new wave of Web3 adoption.
