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

Kyle Samani said Web3 is dead, adding that DeFi and DePIN are the only major crypto sectors left with a clear role.

“Web3 is dead. All we have is DeFi and DePIN,” Multicoin co-founder Kyle Samani said in a post on X.

The comment came in response to a wider debate started by StarkWare CEO and Zcash co-founder Eli Ben-Sasson. Samani’s remark framed Web3 as a fading label, while pointing to decentralized finance and decentralized physical infrastructure networks as the areas still carrying clear market use.

Samani remains one of the better-known investors linked to Solana, Helium, and other crypto infrastructure plays. He stepped back from Multicoin’s day-to-day work earlier in 2026, but has continued to speak about crypto markets and remains tied to Forward Industries.

Ben-Sasson points to crypto identity crisis

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

Ben-Sasson said several long-time crypto figures have left, while institutions and traditional finance firms are showing more interest. He said this shift challenges crypto’s core story because the sector once positioned itself against those same institutions.

His comment reflects a debate already playing out across the market. Crypto started as a movement built around open networks, self-custody, and less reliance on banks. In 2026, much of the new capital and product growth is linked to ETFs, tokenized assets, stablecoins, and regulated finance firms.

DeFi and DePIN remain in focus

Samani’s comment puts DeFi and DePIN at the center of the debate. DeFi covers lending, trading, stablecoins, and other financial tools that run on blockchain networks.

DePIN refers to blockchain-linked physical infrastructure. This can include wireless networks, storage, computing, sensors, and other real-world systems supported by token incentives.

Recent market reports show why these two sectors still attract attention. Standard Chartered has projected large growth in tokenized assets by 2028, with mature DeFi protocols expected to handle much of the activity.

DePIN has also become a clearer market category. Projects in the sector aim to connect blockchain rewards with real infrastructure instead of focusing only on digital apps and token communities.

TradFi interest changes crypto’s debate

The stronger role of institutions has changed how crypto talks about adoption. Banks, asset managers, payment firms, and trading companies now play a larger part in the market.

This creates tension for builders who view crypto as an open alternative to the financial system. It also gives crypto projects a new source of liquidity, users, and regulated products.

Samani’s post did not argue that crypto itself is finished. Instead, it suggested that broad Web3 branding has lost force, while DeFi and DePIN still offer clearer use cases.

The debate now turns on what crypto can prove in real markets. For Samani, finance and infrastructure remain the clearest answers.