
The crypto world is in flux — a seismic shift that's rewriting how we invest, innovate, and think about value. If you've ever wondered why some Web3 projects soar while others crash spectacularly, you're not alone. The secret lies in understanding how crypto mirrors traditional markets and where it boldly diverges. Drawing from cycles of liquidity, startup dynamics, and tokenomics, this article unpacks the future of Web3 business models — those that scale, those that don't, and why it matters to you.
Imagine a market where speculation once ruled, now pivoting toward sustainable value creation. That's where we're headed in 2025. Whether you're an investor, a founder, or just crypto-curious, stick around — I'll break it down with clarity, a touch of wit, and a few surprises along the way.
The Crypto Mirror: Reflecting Traditional Markets
Crypto isn't an alien frontier; it's a distorted reflection of what we already know — stock exchanges, startups, and venture capital (VC). Crypto replicates traditional market cycles but with a twist. These cycles — expansion, peak liquidity, contraction, and depression — drive everything.
- Expansion: Capital floods in, fueling growth.
- Peak Liquidity: Speculation peaks, valuations soar.
- Contraction: Reality bites, prices adjust.
- Depression: New ideas emerge from the ashes.
In traditional private markets, startups bootstrap or secure modest funding to create value (think bootstrapped founders or angel investors). As they grow, VC firms pour in cash during the "inflation and speculation" phase — think Uber or Airbnb in Web2, burning money to dominate markets. Most fail, but the winners deliver big. Crypto? It's the same playbook, just faster and wilder, thanks to instant liquidity from tokens.
Fun Fact: Did you know Airbnb's early funding came from selling cereal boxes during the 2008 election? Web2 giants weren't always VC darlings — they started scrappy, just like some Web3 gems today.
Web3's Wild Ride: Liquidity and Speculation on Steroids
Here's where crypto diverges: liquidity hits from day one. Unlike traditional startups waiting for an IPO, Web3 projects launch tokens that trade instantly. This turbocharges speculation — think absurd valuations and meme coin frenzies. Retail investors, lured by hype, often bear the brunt when bubbles burst.
Historically, Bitcoin's halving cycles (every four years) synced with altcoin bull runs, peaking six months post-halving. But in 2024–2025, something's off. Bitcoin's price has soared, yet altcoins lag. Why? Two culprits:
- No Clear Liquidity Surge: Traditional markets (NASDAQ, S&P 500) thrived, but crypto didn't get the same juice.
- Attention Dilution: Too many projects — hundreds of Layer 1s, Layer 2s, and AI-spawned tokens — split focus. Meme coins stole the spotlight, leaving innovation in the dust.
The result? Founders ask: "Why bust my ass on a groundbreaking product when a dog-themed token gets more love?" It's a fair question — and a market flaw.
The Value Zone: Web3's Quiet Winners
Amid the chaos, some projects thrive by generating real capital. The video highlights standouts like:
- Stablecoins: Tether and Circle, the backbone of crypto finance.
- DeFi Giants: Uniswap (profitable since 2021), PancakeSwap, Jupiter, Lido, Aave, Hyperliquid (a derivatives star).
- Blockchains: Tron, Binance Smart Chain.
- Real-World Assets (RWA): Maker, tokenizing tangible value.
These aren't flash-in-the-pan hype machines. They're stable, transaction-driven, and often tied to decentralized finance (DeFi). Uniswap's $1.5 billion in annual fees (source: DeFiLlama) or Lido's staking dominance prove it: value beats vaporware.
Contrast this with OpenSea (NFT boom gone bust) or Friend.tech (social hype faded fast). They shone briefly but lacked staying power. Web3 rewards longevity over fleeting trends.
Visual Suggestion: Place a Pie chart here showing the revenue split between DeFi, stablecoins, and RWAs in 2025 — e.g., 60% DeFi, 25% stablecoins, 15% RWAs — to highlight their dominance.
Web2 vs. Web3: The Scalability Conundrum
Web2 mastered scale — think Instagram serving millions with near-zero marginal cost. Web3? Not so much. Blockchain's clunky UX and high fees limit mass adoption. The video argues that Web3's edge lies in higher ticket sizes — fewer users, bigger transactions. DeFi thrives here, profiting from volume (e.g., Uniswap's 0.3% swap fee).
To scale, Web3 must borrow Web2's playbook — simplicity and reach — while leveraging its unique strength: capital-driven revenue. The future? Hybrid models blending Web2's accessibility with Web3's high-value transactions.
Here's a Mermaid flowchart to illustrate:

Tokenomics 2.0: From Memes to Meaning
Most tokens today are worthless — meme-driven hype with no utility. But change is brewing. Regulatory shifts in the US and Europe are pushing projects to offer real value via:
- Dividends: Tricky legally, but possible.
- Buybacks: Repurchasing tokens to reduce supply and boost value.
Think Amazon reinvesting profits to grow, not just paying out. Web3 startups like Sky, Ronin, Jito, and Kaito are already tweaking tokenomics — burning tokens or sharing profits via governance. This shift separates builders from grifters.
Data Point: In 2024, Binance burned $1.6 billion in BNB tokens, boosting holder value (source: Binance Blog). Expect more of this in Web3.
Investing Smart: Spotting the Next Big Thing
So, how do you pick winners in Web3? Focus on:
- Transaction-Based Models: Projects thriving on volume (DeFi, stablecoins, RWAs).
- Web2 Integration: Scalability meets blockchain.
- Sane Valuations: Avoid overhyped launches — early Uniswap or Lido had modest starts.
- Token Value: Buybacks or utility over speculation.
These traits signal long-term potential. Hyperliquid, bootstrapped and profitable, is a poster child for this approach.
Visual Suggestion: Add a comparison table here — e.g., Uniswap vs. a meme coin — showing revenue, valuation at launch, and holder benefits.
The Road Ahead: A Call to Action
Web3's future hinges on sustainable business models. The era of blind speculation is fading; value-driven projects will rise. As investors, we must dig deeper — beyond the hype, into the numbers and mechanics.
What do you think — can Web3 marry Web2's scale with blockchain's promise? Drop a comment below and let's debate. If you found this dive into Web3's evolution eye-opening, clap for it on Medium and share it with your crypto crew. The next big winner might be one click away.
source: https://raglup.medium.com/the-web3-revolution-unveiled-scalable-business-models-and-the-future-of-tokens-d9decdbe8f88?source=rss-f56f44caad34------2