Alexis Kestler
As a blockchain technology geek and data analyst, I‘ve been closely tracking the emergence of Web 3.0 and how it‘s shaping the future of the internet and cryptocurrencies. There’s every indication that the fierce crypto race is only getting started. The total crypto market cap exceeded $3 trillion in 2021 and will likely continue rising in 2023 with Web 3.0 taking center stage.
So what exactly is Web 3.0 and what are the top cryptos to watch in this space? I‘m glad you asked! As your friendly neighborhood tech expert, I‘ve put together this comprehensive guide to help you understand this new evolution of the internet and make informed crypto investment decisions. Let‘s dive in!
What Is Web 3.0 and Why Does It Matter?
Web 3.0 refers to the next generation of the internet focused on decentralization, openness, and giving users control over their own data. Some call it the "semantic web" while others refer to it as the "decentralized web".
As a refresher, Web 1.0 was the early internet of the 1990s with mostly static websites. Web 2.0 emerged in the 2000s with interactive, user-generated content and social media platforms.
But in Web 2.0, our data is largely controlled by major tech companies like Google, Facebook, and others. This raises reasonable concerns over privacy, censorship, and monopolization.
Web 3.0 aims to flip this model by leveraging blockchain, decentralization, and token-based economics. The goal is to shift power and ownership back to users in an open, trustless, and permissionless network.
The implications of this paradigm shift could be immense. Web 3.0 could transform how we communicate, collaborate, transact, and build a fairer digital economy.
According to Forbes, 72% of internet users are interested in a Web 3.0 future. Another survey found that 68% want more control over their data and identity.
So as Web 3.0 gains momentum, the cryptos, platforms, and protocols leading this charge should benefit greatly. Let‘s analyze the top 10 Web 3.0 crypto contenders for 2023.
Top 10 Web 3.0 Cryptocurrencies
1. Ethereum (ETH)
As the first and largest smart contract blockchain network, Ethereum is undeniably a core Web 3.0 infrastructure layer.
It supports decentralized applications (dApps), financial services (DeFi), non-fungible tokens (NFTs), and more. Ethereum has the most developers, projects, and users of any blockchain.
In 2022, Ethereum successfully transitioned from an energy-intensive proof-of-work (PoW) to a more eco-friendly proof-of-stake (PoS) consensus mechanism called The Merge. This was a major leap forward in scalability, security, and sustainability.
The native currency ETH will continue playing a central role in the Web 3.0 ecosystem as gas fees, payments, collateral, and rewards. At a market cap nearing $200 billion, ETH is the clear #2 crypto behind Bitcoin.
I expect Ethereum‘s dominance to grow through 2023 and beyond as more apps launch and users flood in. The shift to PoS also reduced ETH inflation by ~90% overnight, creating a supply squeeze as demand rises.
2. Helium (HNT)
Helium stands out for its unique Web 3.0 use case – a decentralized wireless network. This allows anyone to provide wireless coverage for low-powered Internet of Things (IoT) devices using special hotspots and earn cryptocurrency in return.
With wireless connectivity playing a pivotal role in Web 3.0 applications like smart homes, autonomous vehicles, and supply chain monitoring, Helium is building the infrastructure to enable it.
The network already covers over 5,500 cities globally based on crowd-sourced hotspots operated by its community. Helium‘s wireless coverage now rivals major telcos using a decentralized, user-owned model aligned with Web 3.0 ethos.
As the world becomes increasingly connected, demand for Helium‘s wireless connectivity should surge. The company is partnering with Lime, Salesforce, Nestle, and more to power their IoT networks.
This real-world utility is reflected in HNT‘s 500% price gain in 2021. With a fixed supply and upcoming 5G support, constrained supply could lift HNT considerably higher as use cases expand.
3. Polkadot (DOT)
Polkadot brings a unique multi-chain approach to Web 3.0. It acts as a Swiss Army knife blockchain tailored for cross-chain composability.
Unlike isolated platforms like Ethereum or Solana, Polkadot provides interoperability between specialized sidechains called Parachains that can communicate seamlessly. This "internet of blockchains" aligns closely with Web 3.0 goals around open collaboration and composability.
Developers can leverage Polkadot‘s Relay Chain security and build custom blockchains for DeFi, NFTs, identity, gaming, and more. These connect to the broader Polkadot network while retaining sovereignty.
The ecosystem now has hundreds of projects either operating as Parachains or planning to switch from Ethereum. Polkadot also empowers users to vote on-chain governance and gets upgrades through referendums.
With so much developer activity and real-world use, DOT‘s $8 billion market cap could expand considerably as the network effects compound.
4. Theta (THETA)
Theta brings decentralized streaming to Web 3.0. The protocol rewards users for sharing spare bandwidth and computing power to relay video streams.
This bypasses the traditional CDN model where central servers deliver all content. Instead, viewers collectively contribute resources to support streamers.
In 2021, Theta handled 12 billion viewer hours of streaming by companies like Samsung, Sony, and CAA. It reached 1 million active users with 340+ enterprise partnerships.
Theta‘s model aligns perfectly with Web 3.0‘s peer-to-peer, user-powered ethos. It brings streaming without centralized intermediaries and gives users control over their experience.
As virtual reality, digital content consumption, and metaverse activity matures, decentralized streaming could be a critical backbone. Theta is already integrated with leading VR platforms like Mobix and Gunters Universe.
With real traction and room for exponential growth, THETA could be a breakout Web 3.0 crypto play for 2023 and beyond.
5. Filecoin (FIL)
Decentralized storage is another pillar for the Web 3.0 tech stack – that‘s where Filecoin comes in.
The Filecoin network financially rewards users for renting out spare hard drive space to store data. This open-access storage market runs on blockchain with built-in encryption, redundancy, and file integrity checks.
Storing data on Filecoin costs up to 60-70% less compared to AWS, Google Cloud, or Dropbox. The network already has over 10 billion GB of storage capacity from nodes worldwide.
Filecoin‘s model gives users control over their storage needs without relying on major cloud providers. It‘s fast becoming the go-to Web 3.0 data storage layer for NFTs, AI models, and other large files.
Given the exploding demand for storage from crypto projects, metaverse content, and Web 3.0 apps, Filecoin‘s prospects look bright for 2023.
6. Dash 2 Trade (D2T)
One new and exciting Web 3.0 crypto is Dash 2 Trade. Despite launching in late 2022, D2T‘s $7 million presale demonstrated huge demand for its crypto analytics and signals platform.
Dash 2 Trade aims to level the playing field for traders with social metrics, on-chain analytics, strategy builders, and trading signals to make informed decisions.
In today‘s complex, volatile crypto markets, reliable analytics and insights can generate a sizable trading edge. 78% of crypto traders rely on some form of analytics or tools per this survey.
As a one-stop trading intelligence portal, Dash 2 Trade solves many pain points traders face in 2022‘s bear market. Its toolset aligns neatly with Web 3.0‘s ethos around open-access.
Backed by a full roadmap and crypto veterans, D2T has immense breakout potential as a leading Web 3.0 crypto analytics platform. The presale offered the earliest entry, but exchanges and marketing push will likely fuel considerable growth.
7. Chainlink (LINK)
No Web 3.0 crypto list is complete without Chainlink. Chainlink has become the industry standard oracle network providing real-world data to on-chain smart contracts.
Decentralized apps need reliable real-world inputs like sports scores, weather data, and asset prices. Chainlink supplies this via a global node network in a transparent, tamper-proof manner.
The project partners with heavyweights like Google Cloud, AWS, Binance, and SWFT Blockchain to bridge off-chain data on-chain securely.
Given Chainlink‘s pivotal role across DeFi, gaming, insurance, and Web 3.0 apps, LINK boasts one of crypto‘s strongest network effects. The token powers Chainlink‘s ecosystem via staking rewards and governance rights.
As demand for robust data feeds and computations rises with Web 3.0, Chainlink stands ready to supply the digital infrastructure.
8. The Graph (GRT)
Accessing blockchain data efficiently at scale is vital for Web 3.0 builders and users. This is where The Graph shines.
Dubbed an "Google for blockchains", The Graph indexes blockchain data from Ethereum, IPFS, and more using GraphQL APIs. This allows developers to easily build and query blockchain data in apps and services.
The Graph already indexes >7.7 billion data points across 33 networks used by dApps like Uniswap, Aave, and Balancer. Indexing coverage is expanding across Polkadot, Solana, NEAR and alt-L1s.
As blockchains grow more complex with fragmented data, The Graph becomes more crucial in aggregating on-chain data for Web 3.0.
The native GRT token secures the network via staking incentives for Indexers and Curators verifying data. As adoption spreads, limited supply could drive GRT considerably higher.
9. Livepeer (LPT)
Livepeer brings decentralized video encoding and streaming to Web 3.0. Users can spin up a node and earn crypto for encoding/transcoding video streams to different formats and resolutions.
Or they can watch videos for free with bandwidth shared by peer nodes, creating a censorship-resistant and lower-cost alternative to YouTube and Twitch.
In 2021, Livepeer reached 25,000 active users and 70,000+ streams on the network. It‘s now averaging 1.3 million minutes streamed daily from user-generated content.
As Web 3.0 gains momentum, decentralized video infrastructure will be in high demand. Livepeer is the leading choice, having already proven itself at scale.
The LPT token powers voting on governance decisions and protocol changes. Staking LPT also earns yield from a portion of streaming fees. Look for Livepeer‘s growth to continue propelling LPT higher in 2023.
10. Decentraland (MANA)
No Web 3.0 crypto watchlist feels complete without mentioning the metaverse. While the full open metaverse will take years to develop, Decentraland stands as one of the most well-established Web 3.0 virtual worlds already live.
Launched in 2020, Decentraland enables users to buy virtual LAND parcels as NFTs to build 3D scenes, games, buildings, and applications. MANA tokens grant governance powers and are used for LAND purchases plus in-world transactions.
To date, users have bought $179 million worth of LAND with about 90,000 monthly active users. Major brands like Sotheby‘s, Clinique, and Adidas have opened virtual spaces, stores, or experiences in Decentraland.
As more creators and companies recognize the marketing and revenue potential of metaverse presence, platforms like Decentraland should benefit greatly. MANA offers a way to gain exposure to this emergent Web 3.0 trend.
Conclusion: The Future Looks Bright for Web 3.0 Cryptos
Despite the 2022 crypto winter, the long-term outlook remains strong for Web 3.0 cryptos providing the infrastructure and services to power the next internet era.
The Web 3.0 movement shows no signs of fading given the mainstream attention and critiques of the current Web 2.0 model. Users want greater control, privacy, and ownership online – principles that Web 3.0 aligns with.
From blockchain networks like Ethereum and Polkadot to video streaming, data oracles, and analytics tools, real-world use cases are being built and gaining users consistently.
As both retail and institutional capital allocates more funds into crypto, expect the top Web 3.0 contenders highlighted here to capture significant inflows for their network utility and growth prospects.
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