A lot of damage was caused in 2022. Right from the crypto market crashing to renowned companies going bankrupt, a host of pessimistic, back-to-back developments took the community aback. Parallelly, the crypto industry managed to garner attention from a lot of nation-states and regulators. However, there was a silver lining.
Elaborating on the same in a recent CNBC interview, Ethereum co-founder Joseph Lubin, said that “a lot of value” was created in 2022. Development work, launches, and upgrades did not stop when the industry was put to the test. In effect, that helped to clean out the “CeFi rot.” according to Lubin, that consequentially turned out to be “incredibly valuable.”
In fact, he added that the events also helped re-underline the distinction between “Money Crypto: the exploitation, and Tech Crypto: the real value that is getting built.”
Since the collapse of FTX and other prominent lenders, DeFi has managed to re-garner focus. Evidently, the DEX:CEX ratio noted a substantial incline. From last September’s lows of 7.28%, this ratio rose all the way up to 22% in May 2023. The number has slightly shrunk since then, however, it continues to remain above average. The same indicated the slow, yet steady transition towards DeFi.
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Web3 notion
With recovery seemingly on track, the industry is currently in a much better place now. Commenting on similar lines, the Ethereum co-founder said,
“We took the opportunity to do a refresh on our brand, which essentially draws the distinctions between exploitation inherent in Web2 platforms.”
Thus, according to Lubin, the re-brand highlighted that Web3 is going to be about “active building, and active participation,” in contrast to Web2. At this stage, it is essential to note that the masses are not yet that familiar with Web3. According to a recent survey conducted, only 8% of the respondents understand the concept of Web3 thoroughly. 16% do have a rough idea about this fairly novel web version. Contrarily, the remaining 76% remain unsure, bringing to light the need for investor awareness, and education.
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According to the Ethereum co-founder, the current state presented “a great opportunity for us to share that Web3 is different,” and incorporates tangents like decentralized entities, NFTs, etc. He concluded,
“Web3 isn’t cryptocurrency casinos. Web3 is about builders building... We’re going to have economic agency, and political agency in decentralized organizations. That’s the distinction that we’re trying to bring.”