A couple of years ago, Web3 was everywhere—crypto Twitter was booming, NFTs were selling for millions, and “decentralisation” became the future buzzword. But fast forward to now, and the hype seems to have significantly declined. What happened? Why did the excitement fade?
Let’s break down some of the biggest reasons behind the decline in interest around Web3.
1. The Crypto Bubble Burst
A huge chunk of Web3’s momentum was fueled by the explosive rise of cryptocurrencies. But when the crypto market crashed in 2022–2023, it dragged the entire Web3 ecosystem down with it.
Investors lost money, projects disappeared overnight, and the headlines shifted from “the future of the internet” to “another scam bites the dust.” That kind of volatility erodes trust, and once that’s gone, public interest quickly follows.
2. Too Much Hype, Not Enough Value
Web3 promised a decentralised future, but for most users, that future felt… distant.
Many of the decentralised apps (dApps) released were underwhelming or difficult to use. Outside of trading crypto or minting NFTs, the average person didn’t see a strong reason to switch from the platforms they already use daily.
And when promises aren’t matched by practical, everyday value? People move on.
3. User Experience Was a Mess
Let’s be real: using Web3 tools wasn’t easy.
From managing digital wallets and remembering seed phrases to paying unpredictable gas fees, it was a lot. For early adopters and techies, it was exciting. But for regular users? It was confusing and, at times, downright scary.
Mainstream adoption requires seamless experiences, and Web3 just wasn’t there yet.
4. Regulatory Uncertainty
Governments around the world have been cracking down on crypto, and that’s had a chilling effect on Web3.
With unclear or inconsistent regulations, many companies hit pause on launching new products or investing in development. Users also became wary of platforms that might not be around tomorrow due to legal trouble.
5. The Rise of AI Stole the Spotlight
As interest in Web3 waned, another tech wave surged: Artificial Intelligence.
Since late 2022, tools like Chatgpt have completely captured the public’s imagination. Investors, developers, and media attention have shifted heavily toward AI, making it the new “next big thing.”
Compared to the tangible results people see from AI (writing, coding, automation), Web3 started to look like a solution in search of a problem.
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