After the FTX incident earlier this year, I dived into the details of Web3, talking about how it's changing. Now, 11 months later, things in the Web3 world are a bit shaky. The NFT market is not doing so well, and people are losing interest in brand collections. Let's break down this complicated situation and see how brands are dealing with the current tough times in the crypto world.

Are Web3 Brands in Crisis?

Blue Chips NFTs like Bored Apes, Azuki, Pudgy Penguins, Moonbirds, and CloneX lost their value. 

The values of popular NFT collections, like the top-notch ones, drop a lot—almost 80%! This makes people in the Web3 community feel unsure about what's going to happen next. OpenSea, a big player in the NFT world, surprises everyone by stopping the rule that says artists have to pay fees. This makes people think about how artists can keep making money and if their way of doing business can last.

Monthly NFT Volumes Take a Hit for Big Brands

Every month, the amount of NFTs bought by popular brands like Adidas and Dolce Gabbana goes down a lot. This shows that the world of digital assets is going through a tough time right now. Around 40% of the most famous brands globally, according to Interbrand, are trying out Web3, a fancy term for new internet stuff. But only a couple, such as Nike and Starbucks, are standing out and doing great with it.

Popular Use Cases

From special online content to making digital stuff together, big names like IWC, Adidas, and Lacoste are trying out lots of different things on the internet to connect with people. New companies like Serotonin’s Mojito, Co: Create, and Venly are here to make it easy for brands to use the cool things on the internet. They help them join the Web3 world smoothly. Even big companies like Salesforce and Shopify, which usually help with online shopping and software, are now part of this big change.

The Web3 Value Proposition

Brands aim to boost brand awareness, customer loyalty, engagement, and revenues through diverse Web3 strategies, encompassing loyalty applications, limited collections, and co-created digital goods.

Users engage in collecting, receiving utility, accessing, belonging to communities, expressing identity, and participating in co-creation within the Web3 landscape.

Challenges to Mass Adoption

Recent happenings, like friend.tech and decentralized social media moves, show that Web3 is full of cool possibilities. But, not everyone is into it just yet.

To tackle big problems and make Web3 more popular, some cool solutions are popping up. They're called Layer 2 solutions or L2s. Stuff like Arbitrum, DeBank, Base from Coinbase, Linea, and opBNB are making Web3 even better.

Guess what? Three-fourths of people around the world don't even know what Web3 is! That's a big deal. But don't worry, some smart start-ups like Web3Auth, Dynamic, and Magic are working hard to make it simple for everyone.

Dreaming of a Super Connected Digital World

People dream of a super-connected digital world called the Open Metaverse. They want everything to work together perfectly. But right now, it's a bit like a work in progress. Groups like the Metaverse Standards Forum are trying to make it happen.

Web3's Privacy Puzzle

Web3 is shaking things up, and that makes some people worried about privacy. Some start-ups, like Addressable and Chainalysis, are looking for other ways to do things. But since Web3 keeps things kind of secret, there are questions about keeping data safe and who's who in the digital crowd.

Exploring What Comes After Crypto Winter

A Rapidly Changing World

Even though we're facing a tough time in the crypto world right now, the Web3 world has been growing really fast. Cool things like DeFi (which is like digital money stuff) and NFTs `which are like special digital collectibles) have been changing how things work since 2019.

Questions Still Waiting for Answers

People who are big fans of Web3 are trying to figure out some important things. Like, how can we make this technology something everyone can use? How does it fit with the regular internet we already have? And, what apps can regular people use that actually make their lives better?

Conclusion: Reshaping the Internet

Web3 isn't just a fancy tech term. It's like a superhero changing the Internet and how companies work. Instead of being all about the big bosses, it's now about everyone owning a piece, working together, and not having one big boss. As we keep going on this adventure, the hope of a group excited about new ideas stays super strong.