Kyle Samani Declares Web3 Dead, Backs DeFi and DePIN

DePIN (decentralized physical infrastructure networks) has become a clearer market category in the last two years. Projects in this sector aim to link blockchain token incentives to real infrastructure – think Helium’s wireless hotspots, Filecoin’s storage, or compute networks.

Samani’s firm Multicoin was an early backer of several DePIN projects. The sector avoids the speculative app layer and focuses on capital expenditure models where token rewards replace traditional revenue shares. That structure is easier for risk capital to evaluate.

Recent market reports show why DePIN still attracts attention. The category offers a tangible output – connectivity, storage, or compute – instead of a purely digital community. That tangibility makes it harder to dismiss as a fad.

Institutional Inflows Reshape the Debate

The Identity Crisis

The stronger role of banks, asset managers, payment firms, and trading companies has changed how crypto talks about adoption. ETFs, tokenized real-world assets, and regulated stablecoins now represent the largest source of new capital and product growth in 2026.

This creates tension for builders who view crypto as an open alternative to the financial system. The original crypto narrative – self-custody, censorship resistance, disintermediation – runs directly against the institutional embrace of the same assets.

Eli Ben-Sasson’s question is the real risk event for the market: if crypto becomes just another regulated finance layer, what happens to the identity that drew developers and retail users? The answer will determine which projects survive and which founders leave.

What Confirms or Weakens the Thesis

Samani’s thesis – that DeFi and DePIN are the only sectors with clear roles – is confirmed if capital continues to flow to lending protocols, perpetual swaps, and infrastructure tokens while Web3 gaming and social platforms see declining user counts.

The thesis weakens if a breakout Web3 app emerges that attracts mainstream users, or if regulation restricts DeFi and DePIN to permissioned versions that look like existing finance.

For now, the market is voting with capital. DeFi protocols hold about $100 billion in total value locked across major chains. DePIN tokens have outperformed the broader altcoin market in 2026 by most measures.

The debate now turns on what crypto can prove in real markets. Samani’s answer is that finance and infrastructure are the clearest proofs. The rest of the market will decide whether that answer is enough to sustain the ecosystem beyond this cycle.

Bottom line for traders: Watch capital flows into DeFi lending and DePIN hardware nodes as leading indicators. If inflows slow, the identity crisis deepens. If they accelerate, Samani’s bet holds. The Web3 label is already gone – the question is whether the market needs a replacement.