Author: Joy Sim, Ecosystem Manager, Outlier Ventures
There’s a lot of noise in Web3 right now, and not all of it is helpful. But if you’ve been paying attention lately, you know the energy has shifted this cycle.
As someone who’s on calls with investors, founders, and ecosystem partners daily, I recently had the chance to represent Outlier Ventures across a packed week of events and conversations. I joined panels, judged startup pitches, sat through live dealflow summits, and talked to dozens of builders behind the scenes.
Here’s the bottom line:
There are still real opportunities in Web3 – you just have to know where to look.
What’s Getting Attention (For the Right Reasons)
While many themes are cutting through the hype, these are three themes where I think real traction, funding, and interest are converging:
Consumer Apps Are Having a Moment (Again)
After a long infra cycle, investors are gravitating back to things people actually use.
Fresh users bring fresh stories—and that’s what gets attention in a market eager for signs of life. But it’s not about “going viral.” It’s about intuitive design, clear onboarding, and early signs of product-market fit.
If your app gets users to return, you’re already ahead of 90% of the space. Retention > acquisition—any time.
VCs Are Still Writing Checks, But the Filters Are Tighter
There’s capital out there, but vibes won’t get you funded anymore. The bar is higher — and finally, that’s a good thing.
Founders who come prepared with clear GTM strategies, realistic valuations, and traction—even modest—are still raising. It’s not about looking big. It’s about looking ready.
We’ve moved past the name-dropping stage—it’s all about real value and measurable traction now.
AI Agents Still Have Narrative Weight…But Show, Don’t Tell
Agentic AI still commands attention, but the patience for hypotheticals is wearing thin. VCs are asking: What can it do today?
If you’re building at this intersection, make the product experience tangible. Show flows, not just frameworks. Agent-native design is powerful, but only when it’s backed by actual usage.
It’s no longer about simply hopping on the “AI agents” bandwagon.
What’s Falling Flat
On the flip side, certain narratives and strategies are clearly losing interest. If you’re still leaning on these, it might be time to rethink.
- Infra fatigue is real. There’s more infra than anyone needs. If you’re not tied to adoption or a clear use case, you’re blending into the noise.
- DeFi is quiet, not dead. The energy has shifted. The next wave may be more institutional-grade, less retail-driven. But, the potential’s still there.
- Empty incentive programs are being called out. Ecosystems offering rewards with no retention or loyalty mechanisms? People are over it.
- Pitch decks with no product? Lose the room in 30 seconds. There’s zero patience for hype without depth. People want to see users, usage, or at least a product in the wild.
What’s Fading & What Still Needs to Prove Itself
The cycle has matured. So should we.
Some habits just don’t hold up anymore, and the room can feel it. So, let’s officially retire some of the worst habits of the last few cycles:
- VC-inflated tokens with no fundamentals
- Memecoin mania (for now…)
- Name-dropping investors instead of demonstrating real work
These aren’t just tired tactics, they’re distractions from what actually builds trust and momentum in the market.
Meanwhile, prediction markets are generating buzz, but it’s unclear if it’s just another narrative cycle or something with staying power. There’s potential, but it needs more than curiosity to stick.
If you’re building in that space, clarity, focus, and differentiated use cases will be what turns heads. As someone who’s helped dozens of teams navigate token launches and early-stage strategy, I’ve seen what separates short-term hype from sustainable momentum.
Why This Still Matters
The most refreshing part of my recent conversations wasn’t the fancy venues or panels. It was the founders who showed up ready to build with focus (not on hype, but on product).
They weren’t chasing trends. They were building their product. Listening to users. Walking the talk—quietly.
In a space that can sometimes feel like it’s spinning in circles, that’s what’s going to move us forward.
So if you’re fundraising, building, or investing right now, ask yourself: Are you adding to the noise? Or are you making something that lasts?
Let’s aim for the latter.
Ready to Build What Lasts?
If you’re a founder who’s focused on product over noise, signal over hype…you’re not alone.
At Outlier Ventures, we’re backing the next wave of builders shaping the future of AI x Web3 through our Post Web Accelerator.
Applications are now open for the second Post Web Base Camp, our accelerator designed for teams building in Agentic AI, DePIN, OpenFi, and more.
You’ll get funding, go-to-market support, and access to a network of partners, mentors, and investors ready to help you scale intentionally.
Apply now and build what outlasts the cycle.
The post What’s Actually Working in Web3 Right Now (and What’s Not) appeared first on Outlier Ventures.
