Web3, the decentralized internet platform, was massively impacted during the bear stretch of 2022, Fred Wilson, a partner at Union Square Ventures, observes. In an article published on Dec. 31, he revealed that the value of blockchain-based assets fell by as much as 90% this year.
Fred Wilson’s web3 analysis
The news comes as a blow to investors and enthusiasts since web3 has long been hailed as a promising technology with the potential to revolutionize the internet. The decentralized nature of web3 allows for greater security, privacy, and autonomy, making it an attractive option for those concerned with decentralizing power and data in the current technology landscape.
Besides the contraction in asset valuation, Wilson also disclosed that the carrying value of assets under management had been cut in half this year. While the full extent of the impact on the web3 sector is yet to be seen, the market-wide contraction of this year has had a significant financial impact on those involved.
Nonetheless, Wilson remains optimistic about the future of web3. In the same article, he emphasized the strong foundation of the technology and the dedicated community of developers and users as reasons for his confidence.
He expressed belief in the future of web3 and a commitment to supporting its growth, despite the challenges faced in the past year, saying the scene’s fortune will bounce.
While it is too soon to predict the exact course of the web3 sector following the bubble burst, Wilson’s words offer a hopeful message for those invested in the technology.
Web3 development
The technology behind web3 allows for greater security, privacy, and autonomy, attracting and molding a dedicated community of developers and users.
It utilizes the blockchain, meaning no single entity has absolute control. This decentralization allows for robust infrastructure, as data is not stored in a single location that is vulnerable to hacking or manipulation.
Additionally, it offers increased autonomy since users can interact directly with the network without intermediaries, giving them greater control over their online experiences.
As the technology continues to advance, the potential uses for web3 are only expected to expand. From secure data storage to decentralized finance, web3 has the potential to revolutionize the way we interact with the internet.
Source: https://crypto.news/web3-assets-rapidly-fell-as-valuation-rapidly-shrunk-in-2022/