Web3 investment is booming! Crypto-oriented companies have raised $87 billion, and looking at the growth of this industry over the last couple years indicates an exponential growth in crypto-oriented business interest. In 2019, the total amount of funding was about $4.25 billion, while in 2020 it was $4.86 billion. In 2021, it was $32.8 billion, and 2022 continues to be an impressive year for funding numbers. Despite the financial crisis, companies from different industries continue to prefer allocation of funds to R&D in Web 3.0.
The top target for ventures
Web3 is no longer an industry for narrow-profile funds. Now, among active investors are such global giants as Sequoia Capital and Tiger Global. Despite the interest from such giants, funds with a focus on crypto and blockchain startups, such as Coinbase Ventures, a16z, Alameda Research, and Animoca Brands, still remain the leaders in the number of deals on Web3.
The key idea behind Web3 is decentralization. In today’s Web 2.0, content doesn't belong to its authors, but to corporations. Users often face censorship, personal data leaks, and theft. Web3 needs to solve this problem and return to authors the right to own, share, and monetize their own content. The concept assumes that users will be able to protect personal information, authenticate it, and dispose of it, as well as any acquired assets.
Web3 as a concept is an infrastructure that can be implemented thanks to up-and-coming technologies. Web3 infrastructure itself consists of three layers: blockchains, smart contracts, and decentralized applications (dApps). These technologies have developed enough for mass adoption.
According to a joint report by Messari and Dove Metrics, the top 4 Web3 destinations are:
This high demand is mainly driven by the popularity of metaverses. Many projects strive to be the first to present their own version of the "internet of the future". The market size of the metaverse is over $38.5 billion with many willing to spend up to $1,000 on advanced VR gear to better integrate with these new digital forums. There are over 400 million metaverse monthly active users and this number will only get bigger. By 2026, predictions point to 25% of people spending an hour or more in a metaverse each day.
There are also many promising technological niches, such as verifiable credentials, social graphs, privacy, distributed storage, and others which are now rapidly developing and integrating with mainstream DeFi and Metaverse products. Notable Web3 companies, like Helium (a decentralized network for internet of things) and MobileCoin (a solution for global payments) completed $111 million and $66 million funding rounds respectively in 2022.
The total size of tokenized illiquid assets, including real estate and natural resources could reach $16.1 trillion by 2030 according to the Boston Consulting Group. It’s made up largely of financial assets (such as insurance policies, pensions, and alternative investments), home equity, and other tokenizable assets, such as infrastructure projects, car fleets, and patents. Current companies like SolidBlock will benefit the most from this potential growth.
Interesting fact: over $500 million worth of real estate has been purchased in the metaverse so far.
The intense expansion of the Web3 market will create additional contention for many professionals working in related fields. Here are just a few of these specialities.
- Blockchain developer - Necessary for the creation of secure systems for recording and storing data.
- Smart contract developer - Blockchain solutions use smart contracts everywhere, so the demand for these specialists will be high.
- Data Analyst - The need for a high data quality means high demand for this position.
- UI/UX designer - User experience is just as important in Web3 as it was in Web2.
- Graphic Designer - There is a huge demand for designers who can create and mint NFT art.
- Social media managers - Growing engagement on platforms such as Twitter, Reddit, LinkedIn, or Discord is essential for any project.
- Community managers - There will always be a demand for specialists responsible for managing themed social media channels such as Discord.
Web3 has proven to be the next headliner of the bull cycle. Despite a slight decline in interest in cryptocurrencies, due to the difficult political and financial situation in the world, the prospects for the industry are great! Web 3.0 may very well be the core technology of the 21st century. The main question is - are you ready to join it?