Several exchanges saw turbulence in 2022 resulting in consolidation coupled with a dip and bounce in crypto asset values saw some cooling in the sector. Infrastructure, optimization, and sustainable operations have garnered strong interest across the Web 3.0 ecosystem.

This year holds substantial promise for designing and experimenting with decentralized initiatives, building on previous models, and using Web 3.0 building blocks to develop hybrid projects or new usage cases while gaining clarity in legal frameworks.

Our report also highlights several Web 3.0 trends and key success factors for Web 3.0 players. We are anticipating continued investment and M&A in Web 3.0 businesses, with increased scrutiny on business models.

Key trends highlighted in the report include:

• The worldwide Web 3.0 market: It is projected to reach $81.9BN by 2032, exhibiting a robust CAGR of 44.5% during 2022-32, mainly driven by the need for greater privacy and security in online transactions, as well as the desire for greater control over personal data. 
• Push for policymaking & regulation for digital assets: Governments globally are enhancing Web 3.0 industry regulations to maintain digital asset ecosystem integrity & transparency. 
• Growth of interesting applications of tokenized assets: Tokenization simplifies asset ownership for individuals, potentially unlocking vast markets where trillions of dollars/euros are tied up in non-deployable assets. 
• Affordable blockchain via BaaS: BaaS solutions will allow companies to access blockchain technology without having to build and maintain their own systems from scratch, providing them with a cost-effective way to streamline their operations and gain a competitive edge in their respective industries.
• Growth of cryptocurrency mining: The mining industry is expected to maintain its growth momentum due to the increasing popularity of cryptocurrencies and advancements in mining technology, with a focus on economies of scale. 
• Significant increase in deal value: H1’23 witnessed 27 deals at $972MM as compared to 27 deals at $111MM in H1’22. Notable acquisitions in 2023 include the acquisition of Palm NFT Studio by Candy Digital for $610MM and the acquisition of Asiasoft Corporation by Sabuy Technology for $210MM.
• Private Placement Funding: The industry has attracted over $12.6BN in funding since 2022, with Epic Games and Animoca Brands raising over $2BN and $0.7BN respectively.