From Zero to a Multi-Billion Dollar Empire: What’s Behind Its Extraordinary Success?

In 2016, Arthur Hayes introduced perpetual futures, forever changing crypto markets. Eight years later, Hyperliquid took that same instrument and rewrote the rulebook, driving evolution in decentralized perpetual exchanges (Prep DEX). Hyperliquid’s superior on-chain transparency and seamless, CEX-like trading experience quickly propelled it past competitors like dYdX, even drawing attention from market leader Binance.

What factors have driven Hyperliquid’s rapid success? Let’s dive in.

Hyperliquid is a decentralized perpetual derivatives exchange (Perpetual DEX) built on its proprietary Layer 1 blockchain, launched in 2023 by Harvard alumni Jeff Yan and Iliensinc. A bold vision drove the founders: to develop a DEX that offers the smooth user experience of CEXs while fully preserving blockchain transparency and decentralization.

Instead of adopting the common practice of deploying on existing blockchains, the Hyperliquid team developed their own Layer 1 blockchain optimized specifically for ultra-high trading performance. This laid the groundwork for Hyperliquid to become one of the most groundbreaking DeFi trading platforms in the 2024-2025 period.

When Hyperliquid debuted in 2023, the DeFi market was undergoing a significant shift, triggered by the collapse of FTX in late 2022. This crisis severely eroded trust in CEXs, prompting users to seek decentralized solutions that offered greater control over their assets without relying on intermediaries.

However, DEX faced numerous challenges at the time, including slow transaction speeds, high slippage, complicated user interfaces, and notably poor risk management in derivative products, such as perpetual futures. While platforms like GMX, dYdX, and Perpetual Protocol dominated the market, they were limited by outdated infrastructure and partial order books or AMM models. Against this backdrop, Hyperliquid emerged as a refreshing innovation, seamlessly integrating the performance of CEXs, user-friendly interfaces, and a fully on-chain architecture, setting a new standard for decentralized derivatives trading.

Instead of accepting the technical limitations of existing blockchains, such as Ethereum, Arbitrum, or Optimism, which are constrained by network latency, high gas fees, and scalability issues, Hyperliquid adopted a bold yet strategic path: building a specialized Layer 1 blockchain. This bespoke infrastructure was meticulously designed solely for trading derivatives, delivering unparalleled speed and an exceptional user experience. Its ambitious goal is to become the "AWS for liquidity," providing robust liquidity infrastructure akin to Amazon Web Services' comprehensive cloud services.

Jeff Yan, Hyperliquid’s founder, identified liquidity inefficiency as one of DeFi's most significant pain points, resulting in high slippage and a poor user experience. To tackle this issue, Jeff envisioned a platform capable of supplying liquidity across the entire DeFi ecosystem, much like how AWS provides foundational infrastructure globally.

HyperBFT, like most modern consensus algorithms, builds on Hotstuff and subsequent improvements. Unlike Ethereum and Tendermint, HyperBFT can sequence transactions continuously without waiting for the current block's hash to finalize. Therefore, consensus doesn’t block execution. The two processes run in parallel.

Moreover, HyperBFT distinguishes itself by not embedding a synchronous timescale within its consensus during normal block production. This means that HyperBFT doesn’t require validators to wait for a specific time window to agree on a block. Blocks are generated as swiftly as validators reach a quorum through effective communication, exhibiting a property known as "optimistic responsiveness". This innovation leads to improved confirmation latency, faster block production with block times limited only by network delay, and better scalability. Both the algorithm and networking layers are custom-optimized to meet the specific demands of the Layer 1 blockchain.


Hyperliquid’s state execution splits into two main components: HyperCore and HyperEVM.

HyperCore focuses entirely on on-chain perpetual futures and spot order books. Every order placement, cancellation, trade, and liquidation occurs transparently, benefiting from one-block finality provided by HyperBFT. Currently, HyperCore supports throughput of 200,000 orders per second, with ongoing improvements to node software continuously boosting performance.
HyperEVM

HyperEVM brings Ethereum's familiar general-purpose smart contract capabilities directly to Hyperliquid’s blockchain. The HyperEVM is not a separate chain, but rather, secured by the same HyperBFT consensus as HyperCore. This enables the HyperEVM to interact directly with parts of HyperCore, such as the spot and perpetual order books. Builders can plug into a mature, liquid, and performant on-chain order book with HyperCore + HyperEVM on Hyperliquid.

Let’s keep it simple:

HyperCore: Exchange (perpetual/spot order books), native staking, vaults, and oracles.

HyperEVM: An EVM-compatible smart contract layer for building and deploying decentralized applications.

Hyperliquid is widely recognized as a leading Perpetual DEX.

To establish this distinctive position, Hyperliquid has several core features:

Hyperliquid utilizes a Central Limit Order Book (CLOB), the exact trading mechanism provided by CEXs such as Coinbase and Binance. This system matches buy and sell orders at the best available price at any given moment, a model also used by traditional stock exchanges, such as the NYSE.

Historically, one issue with CEXs has been that buy and sell orders are off-chain data. This has led to persistent concerns among traders about potential market manipulation, as algorithms could theoretically manipulate these virtual figures without transparency. Hyperliquid resolves this issue by creating a fully on-chain order book system. However, the CLOB model demands low latency to enable market makers to continuously open and close positions effectively. This is why Hyperliquid has developed its independent blockchain, allowing complete algorithm optimization and customized fee adjustments.

The critical question arises: Would you opt for a platform that guarantees transparency and delivers speeds comparable to a CEX, or would you prefer a traditional CEX whose underlying mechanisms remain uncertain?


While AMMs provide a liquidity edge over CLOBs by allowing passive liquidity provision and minimizing the need for active order management, they fall short in supporting advanced order types, accurate price discovery, and high-frequency trading (HFT) capabilities that CLOBs offer. In addition, AMMs face issues such as Impermanent Loss and Slippage.

On CEXs, market makers continuously supply buy and sell orders across multiple price levels using automated algorithms. Hyperliquid’s CLOB mechanism operates in much the same way but with one key difference: all order data is on-chain, and every quoted amount represents real capital. Therefore, for the CLOB mechanism to succeed, beyond the infrastructure aspect, it also requires a good liquidity mechanism to ensure that user buy and sell orders are executed immediately, while preserving the security and integrity of the entire system.



Liquidity Mechanisms – Vaults & Market Making



One of Hyperliquid’s core principles is that liquidity should be democratized, meaning anyone can participate in providing liquidity.

Hyperliquid introduces the Hyperliquidity Provider (HLP), a protocol vault that does market making and liquidations and receives a portion of trading fees.HLP democratizes strategies typically reserved for privileged parties on other exchanges by allowing anyone in the community who can contribute liquidity to the vault and share in its P&L. HLP is fully community-owned. For perpetual trading, HLP can give deep and tight liquidity based on CEX perpetual and spot prices.

Additionally, one cannot overlook HIP-2 (Hyperliquidity), a critical improvement proposal defining a fully decentralized, on-chain liquidity strategy embedded directly into Hyperliquid’s block transition logic. Hyperliquidity actively participates in the native order book by quoting live bids and asks, consistently maintaining a tight 0.3% spread that refreshes every 3 seconds. This mechanism ensures immediate trading capability for HIP-1 tokens, particularly valuable in their early phases of price discovery.

Due to its robust technical features and liquidity mechanisms, Hyperliquid has rapidly achieved remarkable results.

Unlike most large projects, Hyperliquid neither raised funds from VCs nor conducted a pre-sale, and steered clear of short-term marketing campaigns. Jeff Yan’s philosophy is clear: A good product speaks for itself - No VCs, No hype, Just code.

The highly successful airdrop of Hyperliquid speaks volumes about the team's vision, proving it to be correct. The total number of wallet addresses that received the Hyperliquid airdrop was 94,000, and on average, each wallet received 2915.64 HYPE token (over $10,000) at the time of the Token Generation Event (TGE) (each HYPE token was priced at $3.9).

Hyperliquid airdropped up to 31% (equivalent to 310 million tokens) of the total HYPE token supply to users at the time of the TGE, with all tokens fully unlocked and excluding the involvement of VCs, CEXs, and market makers. Despite this, the token price continued to rise steadily after the TGE, reaching approximately $32 per token on December 22, 2024. This demonstrates the quality of the product and strong community support.


The trading volume ratio between Hyperliquid perps and Binance perps has also increased significantly, rising from approximately 2.8% in November 2024 to over 10% at present.

Hyperliquid's revenue has also grown rapidly since December 2024, reaching approximately $340M at present.


However, any product that experiences explosive growth is bound to encounter some issues, and Hyperliquid is no exception.

Any product aiming for mass adoption must undergo tests of its limits - Hyperliquid is no exception. The JELLYJELLY Meme Coin incident serves as a notable example.

The HLP vault on Hyperliquid is responsible for managing liquidity and supporting the system during forced liquidations. The liquidator vault can take over positions that are below 2/3 of the maintenance margin. However, the downside is that the platform can suffer significant losses if it falls prey to a manipulation attack. A whale manipulated the mechanics, resulting in a major stress test of the system, causing a $12M unrealized loss for Hyperliquid.

The situation began when a trader opened a $6 million short position on JELLYJELLY, a low-cap token valued at around $10 million at the time. The trader then deliberately removed margin, forcing Hyperliquid’s liquidity vault (HLP) to inherit and automatically liquidate the massive short position. However, after the HLP vault inherited the position, this trader allegedly purchased large amounts of JELLYJELLY, pumping the token’s price on-chain. As the price surged, HLP suffered a $12 million unrealized loss. If JELLYJELLY continued to rise, the entire $200M+ in the HLP vault could have been liquidated entirely.

In the end, Hyperliquid had to delist JELLYJELLY and invoke their emergency mechanism: they overrode the oracle price (ignoring the inflated market price), reset the liquidation price to $0.0095 - the original short price, and force-closed all positions. This action prevented further losses and even secured a $700K profit for HLP.

The swift and decisive handling of the JELLYJELLY incident highlighted the team's robust crisis management capabilities, further solidifying user trust. However, it also raised critical questions regarding the true decentralization of Hyperliquid's operational governance.

Could Hyperliquid’s Success Be Replicated?

While Hyperliquid has undoubtedly achieved notable success, it also faces significant limitations. The "JELLY" incident exemplifies how large leveraged trades can trigger system-breaking chain reactions due to flawed risk logic. Emerging Prep DEXs such as Vest Exchange may offer solutions to these vulnerabilities.



Vest Exchange employs an Automated Market Maker (AMM) combined with itsproprietary risk-assessment engine, zkRisk, to proactively monitor and adjust trade pricing in real-time, prioritizing risk mitigation over profit maximization. When a trade significantly increases systemic risk, such as opening a significant short position on an illiquid token, zkRisk immediately calculates and applies a corresponding risk premium, accurately reflecting the heightened exposure. 

This proactive, risk-based pricing mechanism effectively discourages manipulative tactics similar to those witnessed during Hyperliquid's JELLYJELLY incident, rendering potential exploits prohibitively costly and impractical.
Overall, Hyperliquid's current success can be attributed to four main factors:

An effective marketing campaign featuring a popular airdrop that garnered strong community support.

A robust Layer 1 blockchain infrastructure.

User-friendly UI/UX in its final product.

Looking ahead, the blockchain space remains a fertile ground for considerable growth opportunities, paving the way for continuous evolution in decentralized applications and products. Quality platforms, driven by innovative solutions to existing problems, will undoubtedly emerge and thrive. Given these conditions, the appearance of another successful application similar to Hyperliquid is entirely plausible, provided it effectively addresses existing shortcomings and harnesses emerging technologies to deliver enhanced value to users.


Hype

plore HyperLiquid growth lessons: see how this Layer 1 perpetual DEX scaled from zero to a multi-billion-dollar empire with cutting-edge tech and liquidity

Unlocking HyperLiquid’s Extraordinary Growth: Top Lessons from a Multi-Billion-Dollar Empire

The blockchain space is evolving fast, but one issue continues to haunt Layer-1 designs: the Blockchain Trilemma, the near-impossible task of achieving scalability, decentralization, and security simultaneously. Despite years of innovation, no solution has decisively balanced all three. Enter Quai Network, a fresh Layer-1 contender that brings radical ideas to the table.

Vitalik Buterin, one of Ethereum’s co-founders, introduced the idea of the blockchain trilemma. This concept says blockchains can only truly excel at two out of three things: scalability, decentralization, and security. Take Bitcoin, for example. It’s highly secure and decentralized, but it comes at the cost of being slow and pricey. Conversely, Proof-of-Stake (PoS) networks tend to sacrifice some decentralization to boost speed and handle more transactions.

The core trade-offs haven't disappeared even with new solutions like Layer-2 rollups and hybrid chains. Ethereum still sees high fees when things get busy. Solana is blazing fast but has raised concerns about how decentralized it is. The trilemma is still one of the major hurdles in blockchain development.

Quai Network's Architecture: Beyond Nakamoto

Quai uses a unique consensus model called Proof-of-Entropy-Minima (PoEM), which gives more “weight” to blocks based on how much entropy, or randomness, is reduced during mining (think of it like counting the number of leading zeros). The block with the most weight wins, which helps the network achieve near-instant finality. The idea is to confirm transactions quickly without giving up on security.

The network is built around a three-layer system:

 Acts as the backbone for global consensus and security, creating a new block every 15 minutes.

 These collect headers from multiple Zones and allow transactions between Zones in the same region, with blocks every 5 minutes.

 These are the fast lanes—EVM-compatible environments that confirm transactions in about 7 to 10 seconds.


Thanks to this setup, Quai can scale horizontally without running into traffic jams. They claim the system can handle up to 50,000 transactions per second. And as demand grows, new Zones or subnetworks can spin up automatically, helping keep things fast and cheap.

Most Proof-of-Work blockchains use a lot of energy and aren’t exactly quick to scale. Quai takes a smarter route with merged mining via ProgPoW, letting miners secure all network layers: Prime, Region, and Zone Chains at once. This means Quai can scale its security much faster by tapping into existing mining infrastructure without needing extra hardware or computing power.

To keep miners engaged, Quai also uses a deflationary token model paired with a dual-token setup:

 is the main account-based token, used for gas fees, smart contracts, and decentralized apps.

 is a UTXO-based, privacy-focused coin designed for simple, cash-like payments using fixed denominations.

Miners can pick whether to earn QI or QUAI, or even lock their rewards to boost returns by up to 25%. The whole system is designed to grow securely, run efficiently, and reward long-term participation.


Quai’s design isn’t just theory; it’s built to solve real problems. Access lists allow the network to run transactions in parallel without risking conflicts. Each transaction lists the accounts and storage slots it will touch, so nodes can safely process unrelated transactions simultaneously. This helps cut down on bottlenecks while keeping the system stable.

In addition, Quai works smoothly with familiar Ethereum tools like Hardhat, Foundry, and OpenZeppelin. That means developers can easily migrate their dApps without much extra effort. With its self-hosted RPC setup, Quai stays flexible while giving developers solid control over how they connect to the network.

At House of Chimera, we see Quai carving out a unique position in a space dominated by PoS chains. It offers a high-throughput, privacy-aware, and energy-efficient Proof-of-Work alternative that stands apart from typical EVM forks. Some of the standout features include:

Stronger economic finality, making chain reorganizations more expensive.

Native on-chain checkpoints through coincident blocks.

A scalable design that expands based on network load.

Still, strong architecture alone won't be enough in a crowded market full of forks and short-term airdrop chasers. For Quai to truly break through, it’ll need real adoption, engaging apps, sticky incentives, and a story that resonates.

To understand Quai's full design philosophy, economic model, and competitive positioning, 

. It offers detailed insights into how Quai aims to redefine what Layer-1 blockchains can be.

Quai

Explore how Quai Network tackles the blockchain trilemma with a hierarchical PoW model, fast finality, and innovative scalability.

Quai Network’s Bold Solution to the Blockchain Trilemma

Aethir is a decentralized cloud infrastructure provider that aims to make high-performance computing, particularly GPU resources, more accessible, scalable, and cost-efficient. Unlike traditional cloud providers that rely on centralized data centers, Aethir leverages a distributed network of over 425,000 GPUs 

), including consumer-grade and enterprise-level hardware such as NVIDIA H100s. This model allows underutilized computing resources to be pooled and allocated dynamically based on demand, serving use cases in cloud gaming and AI development.

Aethir’s architecture is built around a three-layer system (Network, Edge, and Application) designed to minimize latency and optimize workload distribution. Its Edge devices act as gateways that manage local clusters and ensure rapid failover and resource reallocation, improving the quality of service for end-users. Additionally, Aethir employs a staking and slashing mechanism using its native ATH token to enforce service reliability and align incentives across the ecosystem.

With over 200 gaming studio partners, a reported capacity to serve 12 million monthly users, and a focus on decentralization, Aethir differentiates itself by offering an alternative to costly and centralized cloud platforms like AWS or Google Cloud.

: Self-reported Q1 2025 revenue reached $20.5 million, the highest among DePIN projects.

: Climbed to $127 million, reflecting a ~90% QoQ increase.

: Averaged ~100 million monthly compute hours, up ~25% QoQ.

: Mirrors broader DePIN momentum as GPU demand intensifies.

: Growth supported by AI adoption and sustained cloud gaming traction.

: 200+ partners and 690 gaming clusters serving ~12 million players.

: Trade tensions and compute scarcity may reinforce decentralized alternatives.

Q1 2025 marked a record quarter for Aethir, with self-reported revenue reaching $20.5 million, positioning it as the top-performing DePIN project in absolute revenue. The ecosystem's Annual Recurring Revenue (ARR) rose to $127 million, reflecting a ~90% increase compared to the previous quarter. Aethir also reported an average of 100 million compute hours per month in Q1, representing a ~25% quarter-over-quarter increase in utilization. 

This growth aligns with a sector-wide uptrend observed across other DePIN networks such as Akash, GeodNet, io.net, and Edge, indicating strong momentum in decentralized compute infrastructure. The key driver behind this expansion is the sharp rise in global demand for GPU-based computing, heavily influenced by the acceleration of AI adoption across both Web2 and Web3 markets. This macro trend is reflected in search interest and supported by strong earnings from traditional chip manufacturers such as Nvidia and TSMC. 


Importantly, the broader geopolitical landscape may further reinforce the case for decentralized infrastructure. Trade tensions and semiconductor supply chain disruptions—particularly between the U.S. and China—pose risks for centralized providers but may highlight the resilience of borderless, decentralized alternatives like Aethir. These platforms, which lack centralized control or physical hubs, are inherently more resistant to regulation and tariffs.

As AI models grow in complexity, the scarcity of computing power becomes a critical constraint. Compute demand is expected to rise further as enterprises continue to scale their AI capabilities, evidenced by a ~50% year-over-year increase in enterprise AI usage in Europe. Aethir’s architecture and resource pool position it to meet these demands, particularly its ability to segment GPU types for AI and gaming use cases.

Beyond AI, Aethir maintains a strong footprint in cloud gaming. The platform partners with over 200 gaming companies and operates 690 clusters serving approximately 12 million players. While the growth rate in gaming is expected to be more stable than in AI, it represents a meaningful and recurring revenue stream as cloud gaming becomes a more viable alternative to traditional hardware-based gaming.

Network includes 425,000+ GPU containers with a total of ~23.6 million TFlops in compute capacity.

The average GPU performance (~59 TFlops) is comparable to retail-grade cards like the RTX 4080 Super.

Likely operational split—retail GPUs for gaming, high-end GPUs for AI workloads.

In Q1, the network delivered ~26 million GPU hours weekly, indicating a ~38.5% utilization rate.

GPUs are distributed across 95 countries, and Edge Devices are active in 97 countries.

66,000+ staked Edge Devices, with ~10% QoQ growth, supporting low-latency performance.

Edge Devices are placed close to users to optimize latency, especially for cloud gaming.

The Aethir Network currently comprises over 425,000 GPU containers with an aggregate compute power of 23,631,280 TFlops, theoretically capable of supporting over 209 million concurrent players. Based on the reported figures, the average compute power per GPU stands at approximately 59 TFlops, comparable to consumer-grade hardware such as the RTX 4080 Super. While not an issue for cloud gaming use cases, this hardware profile may not meet the requirements of more intensive AI workloads. As a result, it is expected that Aethir segments its operations, allocating retail-grade GPUs to gaming workloads and reserving enterprise-level GPUs, such as NVIDIA H100s, for AI tasks. This separation allows the network to serve both verticals efficiently without overburdening low-tier resources.

In Q1, the network delivered an estimated 26 million GPU hours weekly. The current GPU count equates to a utilization rate of approximately 38.5%, above the industry average and indicative of strong demand across its user base. While the exact distribution of hardware is unclear, Aethir has confirmed that its infrastructure spans 95 countries, though specific GPU counts per region are not disclosed.

A globally distributed network of Aethir Edge Devices supports this infrastructure, now present in 97 countries. Over 66,000 Aethir Edge Devices are staked and active on the network as of the latest reporting period, with roughly 10% quarter-over-quarter growth. These Edge Devices are critical in managing local clusters, facilitating rapid resource reallocation, and reducing latency, which is especially important for real-time applications like cloud gaming. Their proximity to end-users enables more stable service delivery and minimizes lag, reinforcing Aethir’s infrastructure design, which is focused on responsiveness and decentralization. To learn more about how the Edge Device prevents latency: 

https://www.houseofchimera.com/blog/is-aethir-the-next-giant-in-cloud-gaming

Slight QoQ decline in follower count on X; Smart Money followers down ~1%.

Smart Money mentions remained stable, indicating continued interest from key market participants.

Significant surge in engagement following Binance Alpha listing.

: Recovered later in Q1, but underperformed earlier due to broader altcoin market weakness.

ATH sentiment reached an all-time high toward quarter-end, driven by increased exposure and retail participation.

Metrics reflect broader market conditions, not waning interest in Aethir specifically.

Community engagement remains a key performance indicator within the crypto industry, particularly for projects operating in emerging verticals like DePIN. In Q1 2025, Aethir experienced minor declines across specific social metrics, including a 0.25% quarter-over-quarter drop in its X (formerly Twitter) follower count and a 1% decline in Smart Money followers. Despite this, Smart Money mentions remained stable, indicating that interest from informed market participants was largely unaffected by short-term volatility.

Aethir's social engagement saw a notable increase later in the quarter, primarily triggered by its listing on Binance Alpha. This event sparked a surge in user interaction and platform visibility, indicating a renewed community interest. While social dominance lagged earlier in Q1, due in part to broader altcoin market underperformance and Bitcoin’s outsized narrative share, it recovered toward the end of the quarter.

Notably, sentiment surrounding the ATH token reached an all-time high by the end of Q1. This likely reflects the influx of new users and retail investors introduced to the project through the Binance Alpha listing. The modest declines seen earlier in the quarter are more a function of prevailing market dynamics than project-specific challenges. Overall, Aethir remains well-positioned to build on its renewed momentum in Q2, especially if positive sentiment and engagement trends continue.

: Aethir’s token was listed on Coinbase, enhancing accessibility and legitimacy.

: Launched a $1 million grant program with Xsolla to support early-stage game developers.

: Grant recipients gain access to Aethir’s decentralized GPU resources for cloud-native gaming.

: Rolled out Aethir Forge, a global grassroots engagement program.

: Appointed ForgeMasters to drive adoption via education, events, and user onboarding.

: Established Regional Forges as operational hubs for community and partner activation.

Aethir’s instant‑play streaming tech in the SuperScale case study drove a 43% preference for instant play, +35% CTR and +45% conversion in Phase 1, and in Phase 2 delivered +143% stream selection, +75% D7 ROAS, +93% ARPU, +77% more sessions, +26% longer sessions, +60% D1 retention, and +80% D7 retention

Aethir has executed a series of strategic initiatives to reinforce its infrastructure, grow its community, and enhance its market presence. One of the most notable developments was listing its token on Coinbase. This move significantly improves accessibility for both retail and institutional participants while potentially boosting liquidity across trading platforms.

Aethir partnered with Xsolla to launch a $1 million grant program to support early-stage developers in the gaming vertical. The initiative provides financial backing and access to Aethir’s decentralized GPU network, offering scalable compute power to develop high-performance, cloud-native games. Beyond funding, the program is structured to promote innovation and solidify Aethir’s presence within the broader Web3 and gaming ecosystem.

To support the growth of its decentralized ecosystem, Aethir also introduced Aethir Forge—a community-led expansion framework focused on localized engagement. ForgeMasters, regional ambassadors responsible for hosting events, onboarding users, and fostering education around the Aethir platform, are central to this initiative. These efforts are coordinated through Regional Forges, which act as logistical and operational anchors across key markets. Collectively, these programs reflect Aethir’s approach to scaling its infrastructure and user base through coordinated, on-the-ground efforts.

Aethir is strategically positioned to benefit from several macro and sector-specific trends that are expected to shape the trajectory of decentralized infrastructure networks. The growing global demand for high-performance computing, particularly in AI and cloud gaming, continues to outpace the available supply of GPU resources. This supply-demand imbalance creates a favorable backdrop for Aethir’s decentralized GPU model, which aggregates underutilized computing power to meet dynamic market needs.

The increasing sophistication of AI workloads—such as large language model training, AI inference, and real-time agent-based systems—will likely intensify the demand for enterprise-grade GPUs. While Aethir’s current network comprises consumer-grade and high-performance units, its ability to segment resources between AI and gaming use cases suggests operational flexibility and room for targeted scaling. Expanding its database-grade GPU capacity will be crucial to securing more substantial AI-centric contracts and partnerships.

Geopolitical uncertainty and the potential for prolonged global trade disruptions, particularly in the semiconductor supply chain, could serve as an unintended catalyst for the development of decentralized alternatives. As traditional providers face regulatory and logistical bottlenecks, platforms like Aethir, which operate without centralized

Looking ahead, Aethir’s ability to scale its infrastructure while maintaining service reliability, expand its enterprise-grade GPU inventory, and capitalize on structural shifts in AI and gaming will be key to its long-term competitiveness. If victorious, Aethir could emerge as a core infrastructure layer in the broader decentralized compute stack, potentially rivaling centralized incumbents in specific verticals over the coming cycles.

Aethir has established itself as a notable player in the decentralized cloud infrastructure space, with a focus on GPU-intensive applications in AI and cloud gaming. Its distributed architecture, combined with an extensive network of consumer and enterprise-grade GPUs, enables dynamic resource allocation and cost-efficient compute delivery.

In Q1 2025, Aethir reported the highest revenue among DePIN projects, driven by strong growth in compute hours and network utilization. Strategic initiatives, such as the Xsolla gaming grant and the Aethir Forge community program, support further adoption and ecosystem expansion.

Key challenges remain around data transparency and scaling enterprise-grade infrastructure, particularly for AI workloads. However, Aethir's operational segmentation between gaming and AI, along with favorable market trends in compute demand, positions it to serve as a core infrastructure provider in the decentralized computing stack.

Aethir’s Q1 2025 growth report reveals record-breaking revenue, GPU usage, and adoption in AI and cloud gaming. Explore the full performance breakdown.

Aethir Q1 2025 Report: Record Growth in AI & Gaming

DeFi Summer 2.0: Can Better UX Trigger the Next Wave of Crypto Growth?

Nostalgia is arguably one of the most powerful emotions, a longing for a time when everything seemed more straightforward, better, and meaningful. That moment is the summer of 2020, not the Summer of ‘69, anon, but what’s now famously known as DeFi Summer. The good old times when one could get a 50% APR, and no one batted an eye. Unfortunately, the summer did not last forever, and now we are all in limbo with point systems.

But will DeFi Summer 2.0 make a comeback in 2025? Let’s find out.

 marked explosive growth in decentralized finance, with yields hitting 50%+ and TVL jumping from $800M to $10B.

The hype cooled fast, shifting from sky-high gains to slower, sustainable growth.

, spread across Ethereum, Solana, Arbitrum, and more.

 Wallet chaos, seed phrases, and clunky apps block mainstream adoption.

 show that better UX could kickstart DeFi Summer 2.0.

DeFi Summer was a turning point in Decentralised Finance (DeFi), with multiple new and interesting projects emerging. During this time, the DeFi ecosystem surged in popularity as users gravitated toward platforms offering financial services without relying on traditional intermediaries. The sector saw meteoric growth, driven by a wave of new protocols (e.g Uniswap, Yearn, Compound, Sushiswap) that created a surge in available opportunities. Fierce competition for users led to exceptionally high APRs, sparking a domino effect across lending, borrowing, trading, and derivatives markets. Consequently, the industry's total value locked (TVL) went up significantly during this period, highlighting the increase in overall activity.

As with any golden era, DeFi Summer wasn’t without controversy. Chef Nomi infamously sold his entire stake of SUSHI tokens, and YAM Finance suffered a critical bug in its rebase mechanism despite accumulating $500M in TVL within a single day.


Yet, even with these setbacks, the growth was staggering. Uniswap’s monthly trading volume skyrocketed from $169M in April 2020 to over $15B by September, nearly a 100x increase. Total Value Locked (TVL) across DeFi jumped from $800M to over $10B, a nearly 13x surge. Surprisingly, even wrapped Bitcoin on Ethereum grew from 20,000 to almost 60,000 BTC in the same timeframe.


But DeFi Summer didn’t last forever. By the end of September 2020, the market cooled rapidly. Many top DeFi tokens saw steep declines, with some losing up to 75% of their peak value. As a result, the initial hype began to fade. The following opportunities were less explosive but more sustainable, shifting focus from aggressive gains to safer, long-term growth. TVL continued to rise at a more tempered pace.

The catalysts behind DeFi Summer were twofold. On one hand, a surge of innovative DeFi protocols introduced new use cases and, more importantly, attractive opportunities. This gave investors a compelling reason to engage with the DeFi ecosystem, as yields were competitive compared to traditional alternatives. On the other hand, the Federal Reserve had begun an easing cycle by cutting interest rates, significantly increasing overall economic liquidity. With abundant capital and a low cost of debt, investors sought higher returns beyond traditional markets, ultimately turning to DeFi as a promising alternative.

In the early days of DeFi Summer, initial participants were driven by a deep belief in the revolutionary potential of decentralized finance. They saw it as a fundamental way to reshape traditional financial systems. As the space gained momentum, it attracted a growing number of participants. This effect was further amplified by a surge in media coverage, which emphasized the potential of DeFi and fueled a sense of FOMO, drawing in even more users.


The initial surge in attention eventually peaked, giving way to a market driven by short-term speculators seeking quick profits rather than supporting the industry’s core vision. This wave of excessive hype was soon followed by a sharp drop in prices and waning public interest, triggering a prolonged bear market and a period of stagnation. The honeymoon phase, which had sparked high expectations and rapid industry traction, ended, ushering in a slower, more measured period focused on sustainable rather than explosive growth.

The return of DeFi Summer would feel like an unexpected snow day, or even better, like sipping an ice-cold cocktail on a sunny beach. But like all good things, it might never return, or worse, it might not feel the same. Today's crypto landscape looks markedly different from the 2020–2022 era, often considered the golden age of DeFi.


Remember the gas fees on Ethereum during that time? The sheer madness of paying up to 700 gwei, around $100, for a single swap? As painful as it was, it highlighted the overwhelming demand for DeFi and, perhaps more tellingly, just how intensely PvP the market indeed was.

The DeFi industry has evolved and matured significantly compared to its earlier days. It is now more resilient to hacks and has shifted toward a more sustainable growth trajectory. While total value locked (TVL) peaked at $200B in 2022 and has since declined to $112B, the sector has expanded in other key areas. Notably, participation has increased, and decentralized exchange (DEX) volumes have reached new highs, surpassing $50B in daily volume this January, roughly five times higher than the best day in 2022.


The number of Layer 1 and Layer 2 networks has grown substantially. In 2020, around 95% of DeFi activity was concentrated on Ethereum. By 2025, Ethereum’s dominance has dropped to roughly 55–60%, with Solana, Tron, and BSC collectively capturing about 15% of the market, and Layer 2s like Arbitrum holding around 2%.

This growing diversification has shifted the narrative. Between 2020 and 2022, being fast and cheap was a significant advantage due to Ethereum’s high fees and slower performance. However, by 2025, most infrastructure projects will offer low-cost transactions and quick finality. As a result, the ability to swap tokens for pennies in seconds is no longer a unique selling point, and the market has become saturated with DEXs and DeFi protocols relying on these features as their primary differentiator.


This begs the question: what will put your favorite DeFi application on the radar, and potentially could kickstart a DeFi summer? User Experience, I know it’s not a sexy topic, but let me cook here.

The Web3 UX is a rollercoaster, not full of joy but rather the opposite. It is filled with redundancy and complexity, making it a digital nightmare. Here are some basics: A Web3 user often needs multiple wallets. Metamask will get you far, but what about non-Ethereum Virtual Machine (EVM) compliant chains like Bitcoin? Solana? SUI? APTOS? SEI? The list goes on. 


The next pain point in the Web3 UX is that the user needs to store the seed phrases of all their wallets individually. The funds are gone if the user loses access to these seed phrases. Remember that users need multiple wallets to navigate their favorite chains, precisely as blockchains come and go in the ever-changing and fast-paced crypto industry. A good example is SUI, which became relatively popular within a few months, as TVL increased from 500 million to over 2 billion within 6 months.


Imagine using a Web2 application and going through multiple hoops and holes just to perform simple stuff. Yeah, right, you will drop that application right away. Users value convenience nearly above everything, even over their privacy 

. Hence, making an application as convenient as possible should be the absolute goal for most projects, while in Web3, that’s currently not the case.

Fortunately, more Web3 projects are starting to understand that UX isn’t just a meme; it’s a key factor in reaching users beyond the Web3 niche. A prime example is Pump.fun, which made launching a meme coin possible in just a few minutes. The best part? Even normies could do it. That accessibility and the viral nature of memes created the perfect storm. Over 9.2 million coins were launched in under a year, generating more than $611 million in fees.

Love or hate them, meme coins proved a point: Pump.fun was a massive success. Its easy-to-use, casino-like interface created an environment where even teenagers could spin up their tokens. Now, we’re not saying DeFi needs to go full casino-mode, but the lesson is clear: UX matters. As long as Web3 apps are clunky and unintuitive, the average user simply won’t touch them.

DeFi today is still overwhelmingly complex. One wrong step can lead to significant losses. A handful of projects are working to fix that, and one standout is DeFiDotApp. It's the closest a Web3 DeFi app has come to replicating the feel of Web2. With social logins, no seed phrases to remember, no bridges to worry about, and no gas fees, onboarding becomes frictionless. Users can just tap, swap, and go, no extra extensions, apps, or hurdles that might push them away. Every additional step increases the chance they’ll quit the process.


Ultimately, ease of use is what drives retention. Once that’s in place, convenience, like saving time or simplifying tasks, does the rest. In crypto, we have a habit of overengineering things, but simplicity keeps users engaged. If DeFi is to see actual adoption, accessibility has to come first. Projects like @DeFiDotApp have set a new standard, and if others follow suit, we could attract fresh liquidity, the same fuel that powered the original DeFi Summer. A new wave of capital, paired with a sense of euphoria, is precisely what the space needs for another DeFi revival.

Will DeFi Summer make a comeback in 2025? Explore the catalysts, UX innovations, and trends that could revive DeFi's golden era.

Will DeFi Summer 2.0 Return in 2025? How UX and Innovation Could Spark the Next DeFi Boom

Crypto Bubble or Evolution? Why Bitcoin's Ascent and Altcoin Chaos Are Redefining the Market in 2025

Key Takeaways

While the DotCom Bubble saw a unified rise and crash, today's crypto market is fragmenting—Bitcoin is climbing institutional ladders while altcoins are left scrambling for attention, funds, and purpose.

Celebrity memecoins and TikTok-fueled rug pulls have turned parts of the altcoin market into a Ponzi-style casino, where hype trumps fundamentals, and 13-year-olds are making headlines—by rugging.

Bitcoin is no longer “just another coin”—it’s evolving into digital gold 2.0, increasingly decoupled from the chaos below it. ETF flows are treating it like an asset class of its own.

After gorging on altcoin deals in 2021, VCs have entered a phase of capital detox. Fundraising is up in quantity, but down in quality, showing that smart money is becoming much pickier.

One of the most brought-up comparisons by critics of the Cryptocurrency Industry is to the now-infamous DotCom Bubble. The Nasdaq shed over 75% of its value, wiping out a casual 5 trillion USD in marketcap. No more Pets.com, Boo.com, and Worldcom, as they all went down the drain in the DotCom Bubble.

Will Cardano, Solana, Bitcoin, and Ethereum have similar fate?

The Dotcom Bubble was a stock market bubble fueled by the widespread adoption of the World Wide Web, or the Internet. The bubble followed a typical ‘bubble path’, whereby Venture Capitalists poured billions of USD into startups, leading to rapid valuation growth and a rapid increase in the Nasdaq index. The significant increase in capital accessibility led to a period of excessive speculation and overvaluation of internet-based companies that came to an end in March 2000. The main driver of the speculation was the belief that the Internet would revolutionize how we live and work, which it eventually did, as there are over 5.56 billion Internet users.

But despite the wide success of the current Internet, we still had the Dotcom Bubble; why?

The bubble was fueled by a combination of factors, including the rapid acceleration in technological advancements and a significant adaptation rate, which led to an over-optimistic overview of the near future. To further add to the toxic cocktail, the cost of debt (e.g. interest rates) was relatively low in the 1990s, making it fairly cheap and accessible to acquire debt financing. To put the bubble into perspective, many companies were significantly overvalued, with some trading at Price-to-Earnings (P/E) ratios of 200 or higher. A P/E ratio of 200 implies that, assuming constant earnings, an investor would take 200 years to recoup their investment through company profits alone.

The psychology of Bubbles (in a nutshell)

Like any mirage, the smoke and mirrors cannot last forever. Eventually, the smoke will disappear, and the collective realization will catch up. The interesting part of bubbles is that they are notoriously hard to predict when they will burst. Traditional Finance models assume that the investor (

) is rational; unfortunately, the cryptocurrency industry is nowhere close to rationality (

The characteristics of a bubble are key to understanding the psychology behind a bubble:

This term refers to the undue and baseless optimism investors exhibit during a bubble's expansion. Investors buy more assets in the hope of a price increase rather than the intrinsic value of the underlying asset.

 The social anxiety, and often peer-pressure, that fuels a bubble to the next level. The feeling that others are quickly increasing capital gains, while you are sidelined, which leads to more and more capital flowing in to capture the ‘opportunity’

 Investors tend to borrow more money to invest in a booming market, as they want to capture the opportunity.

As more investors flock to the market, more positions will be opened in the futures/options market.

 Investors are flocking to the market because of an ‘opportunity’; the price drives asset value, or speculation. The fundamentals are not necessary anymore.

 Bubbles, due to their explosive nature, capture the public's attention, as they often rise rapidly. The media amplifies the optimism, drawing normies into the bubble, hoping to capitalize on the boom (FOMO on steroids).

The driving force behind a bubble is greed and the illusion of easily accessible wealth, which flows out of overconfidence and overoptimism.

Overconfidence arises when investors believe they understand the market well enough to outperform it. In reality, they’re often just riding a broader upward trend. This illusion of knowledge leads to increased trading activity, under the belief that they can consistently beat the market. Early success reinforces this belief—since nearly everyone profits during a bull run, it fuels self-attribution bias. More capital is deployed, inflating the bubble further. The Dunning-Kruger effect plays a role here: less competent investors tend to vastly overestimate their abilities, while more knowledgeable ones are cautious. As inexperienced investors grow, a self-reinforcing echo chamber takes shape.

Overoptimism occurs when investors overrate the future potential of an asset, focusing solely on positive outcomes and assuming the price will continue to rise indefinitely. This mindset leads to ignoring fundamentals and warning signs. As the echo chamber grows louder, price becomes the dominant narrative, bolstered by stories of average individuals becoming overnight millionaires. The belief that “everyone will get rich” blinds investors to downside risks, which are minimized or outright dismissed. The result is a FOMO-driven culture, where people encourage others to buy in, effectively setting the stage for the greater fool theory, leaving latecomers as exit liquidity.

Numerous economists and renowned investors have labeled the cryptocurrency market as a bubble. Eight Nobel Prize winners, including Paul Krugman, have described Bitcoin as a speculative bubble. This view is echoed by high-profile figures like Jack Ma (Alibaba), Jamie Dimon (JP Morgan), Warren Buffett (Berkshire Hathaway), and George Soros (Soros Fund).

On the other hand, the crypto community often rallies behind prominent Bitcoin advocates such as Michael Saylor (MicroStrategy), Donald Trump (current U.S. President), and Brian Armstrong (Coinbase), among others.

The question arises: Who will be on the right side of financial history? 

While this is a complex question, bubbles are notoriously complex to predict. However, we can use a few tools to determine a good outlook on whether Bitcoin and/or the cryptocurrency market is truly a bubble.

Let’s start by examining the fundraising data within the cryptocurrency industry. The graph above displays all publicly announced fundraising events from 2014 through February 2025. Notably, there’s a clear correlation between Bitcoin’s price and the number of fundraising announcements—projects tend to go public with their funding rounds when overall market sentiment is positive. This is intuitive, as announcing a raise during bullish conditions generally attracts more attention and credibility.

However, something curious happened during the last cycle, from 2022 to late 2023. Despite Bitcoin trading at relatively low levels, fundraising announcements remained high. One explanation is that many of these projects had already secured funding earlier, likely during stronger market conditions. They waited to announce their raises until sentiment began to turn more positive. In other words, they timed their announcements to coincide with Bitcoin’s upward trend, even if its absolute price was still relatively low.


Yet, looking solely at the number of deals may give us a limited perspective. To get a clearer picture, we must go deeper into the data to determine if there’s a potential structural break. Interestingly, the correlation between the total monthly funds raised and Bitcoin’s average monthly price became negative in early 2022. While the number of deals held steady, the total capital raised dropped sharply and has only recently begun to recover.

This suggests that the average fundraising amount per project declined significantly during this period. This does not align with our earlier point that projects may have delayed their announcements until sentiment improved. If that were the case, we expect the average raise to remain relatively stable, since the fundraising would have occurred during more substantial market periods (e.g., 2021). Instead, the data indicates that many projects were likely raising smaller amounts in a weaker market environment, rather than simply timing their announcements for more favorable sentiment. The reason for the smaller raising amounts was that the venture capitalists were sidelined, or were locked into deals made in 2021.

In 1999 to 2000, the peak of the Dotcom bubble, there was one apparent trend: the number of deals and total investment skyrocketed. Even so, there were so many deals that even in 2017, the total investment amount was still approximately 40% lower than in the peak of the Dotcom bubble. The FOMO feeling combined with over-optimism and confidence led to a toxic cocktail of venture capitalists flocking to the markets to make highly financially risky and often baseless investments, further strengthening the bubble effect. Eventually, the bubble collapsed in 2001.

Based on the current data, a different pattern is observable. The Bitcoin price increases, while the overall total investment amount is lacking. This differs from what one saw with the Dotcom Bubble, as prices and the total investment amount were correlated.

This makes you wonder, what makes the cryptocurrency industry different from the traditional finance sector?

One of the most notable shifts in the 2024–2025 cycle is the changing makeup of market participants. The approval of U.S. Bitcoin spot ETFs in January 2024 marked a turning point, fundamentally altering market dynamics. In previous cycles, altcoins typically fueled bull runs. As Bitcoin rallied, its dominance would gradually decline as investors rotated into increasingly risky altcoins, driven by FOMO and the search for outsized returns. Eventually, as the risk-reward ratio became less favorable, sentiment would shift, and capital would flow back into Bitcoin as a comparatively more stable asset. This cyclical pattern was evident in both the 2017–2018 and 2021–2022 market cycles.

However, the current cycle is breaking that pattern. Since the Bitcoin spot ETFs' launch, Bitcoin dominance hasn’t declined; instead, it has continued to rise. As a result, many altcoins, including Ethereum, have failed to capture meaningful attention this time around. The few altcoin standouts have been chiefly confined to specific ecosystems, such as Solana, Hyperliquid, and Ton. This divergence is primarily due to ETF-driven capital flows focused solely on Bitcoin, with little spillover into the broader altcoin market. As a result, altcoins have been increasingly sidelined, a trend that mirrors the ongoing decline in fundraising activity across the sector.

Many altcoins now appear ‘cheap’ by historical standards, but they may remain that way for some time without renewed demand. As long as the spotlight remains fixed on Bitcoin through institutional products like ETFs, altcoins are unlikely to see a broad resurgence in investor interest.

Venture capitalists may have held back on funding despite Bitcoin’s rise due to a broader sense of market overconfidence. Many investors assumed the current cycle mirrored that of 2021, expecting altcoins to follow Bitcoin’s lead and surge in value. But that scenario never played out. As altcoins underperformed, retail investors increasingly turned to riskier assets—eventually flocking to memecoins. This shift resembled a leveraged bet, as memecoins are notoriously volatile and often operate more like a casino than a sound investment. The hype was further fueled by viral stories of individuals, even teenagers, making thousands or even millions through memecoin trading—often through questionable means like insider trading. This created a wave of irrational optimism, with the prevailing sentiment being: “Just buy a memecoin, and you’ll get rich.” In reality, the odds were overwhelmingly against the average investor—more on that in the next paragraph.

This brings us to the first defining trait of a bubble: irrational exuberance. The current cryptocurrency cycle reflects this, as investor attention shifted away from utility and fundamentals toward speculative bets on celebrity memecoins. The trend escalated to the point where even the sitting U.S. President, Donald Trump, launched his own memecoin, along with one for his wife, Melania Trump. Several other celebrities followed suit, often ending in rug pulls, including $HAWK by Hailey Welch, $JASON by Jason Derulo, and $MOTHER by Iggy Azalea, which is now linked to questionable gambling content.

This wave of celebrity-driven speculation attracted a large influx of new retail participants, primarily through platforms like TikTok, where these tokens were heavily promoted. For many, this was their first interaction with blockchain technology. The situation reached a new low when a 13-year-old launched a memecoin via Pump.fun, rugged it for $30K, and then repeated the scam with a coin meant to apologize for the initial rug. The fear of missing out (FOMO) became so extreme that bad actors increasingly exploited the frenzy.

Memecoins function as a high-risk speculative market, often resembling a rigged casino. They are roughly 50 times more volatile than Bitcoin; nearly 40% are identified as pump-and-dump schemes. One study found that just 0.11% of tokens launched on Pump.fun survive beyond the first 24 hours. This demonstrates how irrational exuberance combined with FOMO has led to a massive value extraction from inexperienced investors.

Broader market trends indicate a growing risk appetite. Ethereum has reached peak estimated leverage, even as open interest slightly declined after a significant price drop. This suggests more users are borrowing funds to amplify their exposure. However, such high leverage increases the market's fragility—even minor price swings can trigger outsized reactions, potentially resulting in a sharp market-wide liquidation event. On the other side, this can be seen as conviction, as investors are increasing their leverage here, as they might see Ethereum as being valued ‘cheap’ here, which one could argue for. However, it also puts them at a highly vulnerable position.

Now, before the inevitable question arises—“So are all altcoins just bubbles?”—the answer requires nuance. There are gradations. Memecoins are a textbook example of a negative-sum game, where the vast majority lose and a small group walks away with profits, often at others’ expense. Most participants will lose money, creating a lose-lose dynamic. That said, not all altcoins are inherently flawed. Some projects do generate revenue, albeit modestly. However, many altcoin markets consist of projects with no revenue and likely no path to sustainability. Still, this isn’t a uniquely “crypto” issue. The tech industry broadly faces similar dynamics, where roughly 90% of startups fail within the first five years.

The name of the game has changed. For years, Bitcoin and altcoins moved near lockstep, rising and falling as one broad, speculative asset class. But that dynamic is shifting. Since the approval of Bitcoin Spot ETFs, the market has begun to treat Bitcoin differently. It’s no longer just the crypto market leader — it’s starting to look like its own asset class within the digital asset ecosystem.

While correlations between Bitcoin and altcoins still exist, they are weakening. Bitcoin's rallies have become steeper, more consistent, and increasingly decoupled from the rest of the crypto market. Meanwhile, altcoin markets remain sluggish, with capital inflows diminishing and funding rounds slowing down. What we're witnessing is an apparent liquidity rotation.

This rotation reflects a broader investor preference shift — away from speculative altcoins and toward assets with perceived staying power. As the most resilient and liquid digital asset, Bitcoin benefits from this reallocation. This behavior isn’t unique to crypto. In times of uncertainty, traditional and crypto investors tend to retreat to what they perceive as “safer” assets — a phenomenon known as a flight to quality. Historically, gold has played this role. Today, Bitcoin aims to join that category, which is now more accessible than ever through regulated investment vehicles like ETFs.

This shift doesn't spell the end for altcoins but changes the market dynamics. With lower overall funding and weaker inflows, altcoin projects face a more selective environment. The days of speculative mania may be over — at least for now — and only projects with straightforward utility, strong narratives, or deep liquidity will likely thrive.

Explore how crypto in 2025 diverges from DotCom history—Bitcoin rises with institutions, while altcoins plunge into hype and speculation.

Crypto Bubble 2025: Bitcoin vs. Altcoins – What Investors Must Know Now

, founder and former CEO of Binance, has expressed his thoughts about decentralised exchanges (DEXs) and the horrible Web3 user experience (UX) involved. If a founder of arguably one of the most successful Centralized Exchanges (CEXs) cannot navigate this space, can we expect your average Joe to do so? Or can we conclude that 

I wanted to put a few BNB in TST LP, as a test. I seen demos of Pancake before. It looked so simple. I thought, how hard could it be? But I forgot my IQ level.

The Web3 UX is a rollercoaster, not full of joy but rather the opposite. It is filledwith redundancy and complexity, making it a digital nightmare. Here are some basics: A Web3 user often needs multiple wallets. Metamask will get you far, but what about non-Ethereum Virtual Machine (EVM) compliant chains like Bitcoin? Solana? SUI? APTOS? SEI? The list goes on.

The next pain point in the Web3 UX is that the user needs to store the seed phrases of all his wallets individually. The funds are gone if the user loses access to these seed phrases. Remember that the user needs multiple wallets to navigate his favorite chains, precisely as blockchains come and go in the ever-changing and fast-paced crypto industry. A good example is SUI, which became relatively popular within a few months, as TVL increased from 500 million to over 2 billion within 6 months. 


Liquidity flows like water; it always flows to the lowest point, or in other words, where it is most needed. Therefore, it is safe to say that if the financial incentives are significant enough, capital inflows will happen over time, right? 

In Web3, this is not necessarily the case, and that is due to the overwhelming barriers of entry to bridge your capital over to a new chain. Users must move their money through a blockchain bridge by signing multiple transactions and praying everything will be OK. However, this is not a familiar experience as one would have in Web2. Thus making the experience very surreal and confusing for new users.

Let’s assume you made it; you finally got your funds on Solana and can finally buy your favorite memecoin. Oh, never mind. We forgot about gas fees. Oh, that’s unfortunate; how do you get your Solana? Possibly through a Centralized Exchange, but that defeats the purpose of using the DEX in the first place. 

We didn’t even go into depth into the hurdles you must overcome to get the best pricing (i.e. routing) while using DEXs. This extended example shows the hilariously bad UX and how many balls an average user has to keep in the air to perform relatively simple stuff.


It is no secret that the number of Web3 developers has been dwindling for months now. We’ve been posting about it regularly, as the number of developers has decreased to ‘just’ 23,000 monthly active developers from 31,000 in 2021. The reason for the significant decrease is pretty broad, but it roughly comes down to the Developer Experience being equally bad as the Web3 UX. 

In Web2, one can use a lot of libraries and packages (e.g. SDKs), making development significantly more efficient and more plug-and-play. The Web3 developing environment is more scattered and less mature, making developing more time-consuming and frustrating.

It is not all bad news here; some light is on the horizon. The horrible state of DevEx and UX in Web3 is being agreed upon; thus, there is an increasing focus on improving these areas. Within the Chain Abstraction space are a couple of incredibly innovative and forward-thinking projects, such as Enso, Particle Network, and Okto.

The latter aims to be the ‘Eureka’ or Lightbulb moment in the Web3 industry by streamlining the UX and DevEX. The 

 Platform consists of four layers, which work together to abstract all the complexities away from the user.

 Forget seed phrases. With Okto's Decentralized Wallet Network (DWN), onboarding is as easy as logging into your favorite Web2 app – using social logins like Google or email, all secured by cutting-edge Multi-Party Computation (MPC) behind the scenes. Say goodbye to wallet juggling. DWN delivers a universal wallet, working seamlessly across multiple chains and dApps – you won't notice the blockchain complexities fading away. The user can focus on what he wants to achieve without worrying about how to get there.

Insights & Expert Advice on Web3 and Cryptocurrency

Research

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Insights

Unlocking HyperLiquid’s Extraordinary Growth: Top Lessons from a Multi-Billion-Dollar Empire

Will DeFi Summer 2.0 Return in 2025? How UX and Innovation Could Spark the Next DeFi Boom

Crypto Bubble 2025: Bitcoin vs. Altcoins – What Investors Must Know Now