Kyle Samani Says Web3 Is Dead — Only DeFi and DePIN Left

The debate over crypto’s future took a sharp turn this week. Kyle Samani, co-founder of Multicoin Capital, declared that “Web3 is dead.” He argued that only decentralized finance and decentralized physical infrastructure networks still matter.

His comments came in response to remarks from StarkWare CEO Eli Ben-Sasson. The StarkWare founder said the crypto industry appears to be facing an identity crisis. According to Ben-Sasson, many early crypto supporters are leaving while traditional financial institutions are finally embracing the sector. The exchange has quickly become one of the most discussed topics in Web3 news. This highlights growing divisions over where the industry is headed.

Crypto Leaders Debate the Industry’s Future

Ben-Sasson first raised concerns about crypto’s changing identity in a post on X. He noted that crypto originally positioned itself against traditional finance. But banks, asset managers and large institutions are now becoming major participants in the market. That shift has created tension within the industry. Many long time supporters viewed crypto as an alternative to traditional financial systems. Today, institutional adoption is often celebrated as a sign of success. 

Responding to the post, Samani delivered a blunt assessment. “Web3 is dead,” he wrote. “All we have is DeFi and DePIN.” The statement suggests that many of the broader Web3 narratives have lost momentum. Instead, Samani believes investors and developers are focusing on sectors that generate measurable utility and revenue.

Why DeFi and DePIN Continue to Attract Attention

DeFi remains one of crypto’s largest sectors. It allows users to borrow, lend, trade and earn yield without traditional intermediaries. Meanwhile, DePIN projects connect blockchain incentives with real-world infrastructure. These networks support services such as wireless coverage, data storage, and computing resources. 

Both sectors have attracted capital despite broader market cycles. As a result, many investors see them as practical blockchain applications rather than speculative concepts. The latest comments from the Multicoin Capital executive reflect a wider trend. Market participants are increasingly prioritizing products with clear business models and active users.

Samani Also Questions Hyperliquid

Samani recently sparked another debate involving Hyperliquid. He argued that the platform appears “just as suspicious as Binance.” He claimed that many issues previously raised against Binance also apply to Hyperliquid. The remarks generated immediate pushback. Mike Dudas, an investor at 6MV, rejected the comparison. He argued that Hyperliquid operates differently from centralized exchanges. Dudas pointed to the platform’s on-chain transparency and its token-holder-focused economic structure. The disagreement highlights growing scrutiny of crypto platforms as regulators increase oversight across the industry.

What This Means for Crypto Markets

The discussion arrives during a period of major change for the industry. Spot crypto ETFs continue attracting institutional capital. Regulatory clarity is improving in several regions. At the same time, many early crypto narratives are being questioned. For some observers, Samani’s comments reflect the market’s maturation. 

For others, they signal a narrowing vision of what blockchain technology can achieve. Either way, the debate is unlikely to fade soon. As crypto market news continues to focus on adoption and regulation. The future of Web3 may depend on whether new use cases emerge beyond DeFi and DePIN. For now, Samani believes those are the only sectors still standing.

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