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

Kyle Samani believes the broader ‘Web3’ concept has failed, but sees potential in specific areas like decentralized finance (DeFi) and decentralized physical infrastructure networks (DePIN) as the only remaining crypto sectors with a defined purpose.

Summary

  • Kyle Samani said Web3 is dead, naming DeFi and DePIN as crypto’s remaining core sectors.
  • Eli Ben-Sasson said crypto faces identity pressure as institutions enter while longtime crypto OGs leave.
  • Recent reports show DeFi, DePIN, and tokenization still draw broad market attention globally.

According to Multicoin co-founder Kyle Samani, the idea of ‘Web3’ as a broad concept isn’t taking off. He believes the focus now is on decentralized finance (DeFi) and decentralized physical infrastructure networks (DePIN), as he stated in a post on X.

This comment was made during a larger discussion started by Eli Ben-Sasson, the CEO of StarkWare and co-founder of Zcash. Samani suggested the term ‘Web3’ is losing relevance, but highlighted that decentralized finance and networks for decentralized physical infrastructure are still showing strong, practical applications.

Web3 is dead

All we have is DeFi and depin

— Kyle Samani (@KyleSamani) June 1, 2026

Samani is a well-known investor in companies building the foundation of the crypto world, like Solana and Helium. He reduced his daily responsibilities at Multicoin in early 2026, but still shares his insights on crypto and maintains his connection with Forward Industries.

Ben-Sasson points to crypto identity crisis

“Crypto seems to be going through an identity crisis,” Eli Ben-Sasson said on X.

According to Ben-Sasson, we’re seeing experienced crypto leaders move away as traditional financial companies become more involved. This change is ironic, he notes, because crypto originally built its identity by opposing those very institutions.

As I’ve been observing the crypto market, I’ve noticed a significant shift in conversation. It began with a vision of decentralized, self-managed systems, aiming to reduce our dependence on traditional banks. However, looking ahead to 2026, much of the innovation and investment seems to be flowing into things like ETFs, tokenized assets, stablecoins, and, importantly, through regulated financial companies. It’s a clear change from the original ethos.

DeFi and DePIN remain in focus

As an analyst, I’m seeing a lot of discussion center around DeFi and DePIN right now. When we talk about DeFi, we’re essentially looking at financial tools – things like lending, trading platforms, and stablecoins – all built and operating on blockchain technology.

DePIN connects blockchain technology to real-world infrastructure like wireless networks, data storage, computing power, and sensors. These systems are powered by rewards in the form of cryptocurrency tokens.

I’ve been looking at the latest market reports, and it’s clear why tokenized assets and DeFi are still hot topics. Standard Chartered is predicting huge growth in tokenized assets by 2028, and they think the established DeFi platforms will be the ones driving most of that activity. It seems like a good place to keep an eye on for potential opportunities.

DePIN is now a more well-defined area within the crypto space. These projects are working to link blockchain rewards to tangible, real-world infrastructure, rather than just concentrating on online applications and digital communities.

TradFi interest changes crypto’s debate

The increasing involvement of established financial institutions is shifting the conversation around cryptocurrency adoption. Banks, investment firms, payment processors, and trading companies are now more significant players in the crypto market.

This situation puts builders in a tricky spot, as they see crypto as a more open and accessible alternative to traditional finance. At the same time, it provides crypto projects with fresh funding, a wider user base, and access to regulated financial products.

Samani wasn’t claiming cryptocurrency is failing. Her point was that the general ‘Web3’ label isn’t as effective anymore, but areas like DeFi and DePIN still have strong, understandable benefits.

Now, the central question is whether cryptocurrency can demonstrate its value in practical, real-world applications. According to Samani, the most promising areas are still finance and building essential infrastructure.

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2026-06-01 11:09