Web3 assets have fallen rapidly as the valuation shrinks rapidly in 2022
Fred Wilson, partner at Union Square Ventures, notes that Web3, a decentralized internet platform, has been hit hard during the 2022 bear period. In an article published on December 31, he revealed that the value of blockchain-based assets has fallen by up to 90% this year.
web3 analysis by fred wilson
The news comes as a slap to investors and enthusiasts that Web 3 has long been hailed as a promising technology with the potential to revolutionize the Internet. The decentralized nature of Web 3 allows for greater security, privacy, and autonomy, making it an attractive option for those concerned with the decentralization of power and data in today’s technology landscape.
Besides the downturn in asset valuation, Wilson also revealed that the book value of assets under management has been halved this year. While the full extent of the impact on the Web 3 sector is not yet clear, the market-wide downturn this year has had a significant financial impact on those involved.
However, Wilson remains optimistic about the future of Web 3. In the same article, he stresses the strong foundation of the technology and dedicated community of developers and users as reasons for his confidence.
He expressed his belief in the future of Web 3 and commitment to supporting its growth, despite the challenges of the past year, saying that the fortune of the landscape will bounce back.
While it is too early to predict the exact trajectory of the Web 3 sector after the bubble has burst, Wilson’s words offer a hopeful message for those who have invested in the technology.
Web 3-based technology enables greater security, privacy and autonomy, attracting and shaping a dedicated community of developers and users.
It uses a blockchain, which means that no single entity has ultimate control. This decentralization allows for a robust infrastructure, where data is not stored in a single location that is vulnerable to hacking or tampering.
In addition, it provides increased autonomy as users can interact directly with the network without intermediaries, giving them greater control over their online experiences.
As technology continues to advance, the potential uses for Web 3 are expected to only expand. From secure data storage to decentralized finance, web3 has the potential to revolutionize the way we interact with the Internet.