Concerns about Web3 tokens decline in long-term viability have spurred fresh discussion in the crypto world via a recent tweet by Kook Capital LLC on May 4, 2025, at 10:15 AM UTC. The paper noted a widening disparity between content providers and consumers and speculated that the distributed model, especially in NFTs and creator tokens, may depend on creator involvement without corresponding user demand.
Web3 Market Dips
The data of the present market seems to mirror this attitude. Primary Web3 tokens, including Internet Computer (ICP), were trading at $12.45, down 3.2% over the past 24 hours as of midday UTC. Similarly impacted was Filecoin (FIL), down 2.8% to $5.87 (CoinMarketCap). Around 1:00 PM UTC, while FIL experienced a 12% dip to $112.5 million, suggesting declining investor interest, ICICP’s trading volume had dropped 15% to $48.3 million (Source: CoinGecko).
On-chain data supports the negative perspective. DappRadar reports that Web3 active users declined 7% last week, leaving just 1.2 million unique wallets interacting with distributed apps as of 2:00 PM UTC. This information reinforces the key issue expressed by Kook Capital: if consumer acceptance does not scale at the same speed, a content-heavy economy cannot be sustained.
By 3:00 PM UTC, the market’s focus on Web3 assets was even more precise. Token values seem to match the declining on-chain activity exactly. While FIFIL’s hourly range swung between $5.75 and $5.95 at 4:00 PM UTC (Source: Kraken), ICP noted a 24-hour low of $12.30 by 9:00 AM UTC (Source: Binance). Liquidity measures followed this pattern: BiBinance’s CP/USDT pair showed $22.4 million in 24-hour activity, an 18% decline; KuKuCoin’s IL/BTC pair dropped 10% with 1,920 BTC exchanged (Sources: Binance, KuKuCoin).
Web3 Sentiment Slips
LunarCrush’s sentiment data brought more strain. Social media mentions of Web3-related terms, including “d” centralized apps, “nd “N” T platforms, dropped 9%, suggesting that even community involvement is cooling off as of 5:00 PM UTC.” These trends can indicate a chance for short-term traders to follow bearish strategies or wait-and-see until user metrics recover.
Technicians support the cautious attitude of the market. As of 6:00 PM UTC, ICICP’s SI remained 42 on the 4-hour chart—approaching oversold levels but providing scant evidence of a reversal (Source: TradingView). At 7:00 PM UTC, the MACD verified a negative mood by displaying a crossing with the signal line below it. FIL displayed resistance at its 50-day moving average of $6.10; prices stayed at $5.87. On Coinbase and Kraken, trading volumes likewise trended lower. The volume of ICICP dropped 20% to $10.8 million; FIL dropped 14% to $35.6 million (Source: Coinbase, Kraken).
Web3 and AI Tokens Struggle Amid Declining
Glassnode’s chain statistics at 8:00 PM UTC verified these declines. In the past 24 hours, ICP noted just 18,400 transactions, a 5% drop. Fil had 22,100 transactions, down 6% over the same time frame. These numbers imply ongoing downward pressure until Web3 platforms can spark consumer activity.
AI also finds a place in the Web3 story since many distributed platforms nowadays include artificial intelligence to increase involvement. Still, even efforts connected to artificial intelligence are running against similar difficulties. With trading volume declining 10% to $85.7 million, Fetch.ai (FET) traded at $1.23, down 2.5% in 24 hours as of 9:00 PM UTC (Source: CoinMarketCap). Using correlation research from IntoTheBlock, FET and ICP have a 0.68 link over the past 30 days, suggesting that bad sentiment in Web3 also influences AI initiatives. If adoption stories pick up steam, traders could find chances in AI/Web3 crossover tokens like FET.
ICP stayed at $12.45 (down 3.2%), and FIL held at $5.87 (down 2.8%), so supporting worries regarding the long-term survival of We Web3 in its current form (Source: CoinMarketCap). As of the end of May 4, 2025, at 11:00 PM UTC.
Affect Web3 crypto trading?
Token pricing and liquidity are directly impacted by declining engagement, as shown by a 7% drop in active users on Web3 platforms as of 2:00 PM UTC. Reflecting a bearish change traders cannot overlook, ICP and FIL witnessed 15% and 12% volume drops respectively (Source: DappRadar, CoinGecko).
Lead Ahead of the Curve
To negotiate these changing circumstances, keep current on Web3 user data and sentiment trends. Monitoring user growth, platform adoption, and AI integration can help you find the next opportunity- or warning signal- whether you trade or invest in Web3 assets. Consider signing up for our crypto insights newsletter to learn about the future of decentralized ecosystem analysis in real time.
