In the heat of 2021’s record-breaking venture market, you couldn’t avoid the growing noise of the burgeoning web3 sector. Trust me, me tried. But while some of that momentum continued into 2022 (Yuga Labs closed a $450 million seed round in March), the rest of the year was relatively quiet.

Yes, the company as a whole had a quieter year overall in 2022, but the lack of web3 deals was particularly noticeable as the industry entered the year with such momentum. Perhaps the dramatic meltdowns of token Luna and second largest crypto exchange FTX have scared investors away from web3 as a whole? Has the rapid decline in consumer interest in NFTs prompted VCs to rethink the category? We decided to find out.

To get a better idea of ​​how the people writing the checks feel about web3, australiabusinessblog.com surveyed more than 35 investors. feel is a potentially transformative technology.

A VC, who asked to remain anonymous, said that because the technology is so emerging, we’re not yet seeing the real potential use cases, which could explain the lack of continued excitement following the 2021 rally.

“Those who understand space know that there is a lucrative future that is still in its infancy,” they said. “Those who don’t understand the space know that too, but will be more reluctant to implement without a fundamental understanding of the real-world applications. Almost none of the purported benefits of web3 (decentralization, pseudonymous identities, zero-knowledge proofs, etc.) have been fully realized to date. It’s like the era of the [early World Wide Web]when every web page was plain HTML with ridiculous graphics and archaic capabilities.