In the ever-evolving landscape of Web3, and indeed in any sector experiencing rapid growth, the challenge of creating something truly innovative amidst a sea of copycat projects is both daunting and crucial. The Web3 space, characterized by its decentralized nature and promise of revolutionary technology, has seen waves of projects that often seem more alike than different. This repetition, driven by trends and short-term gains, can dilute innovation and leave lasting impact on the sector. So, how can you stand out in such a crowded field?

Let’s take a look at the evolution of trends within the Web3 space to better understand the cyclical nature of hype and the importance of innovation.

**2018: The Era of Mining Rigs and Exchanges**

In 2018, as Bitcoin and other cryptocurrencies gained mainstream attention, there was a rush to build mining rigs and cryptocurrency exchanges. The allure of mining profits and trading fees led to a flood of projects, each promising better returns, lower fees, or faster transactions. However, the market quickly became saturated, with only a few standout platforms surviving the test of time.

**The Rise of “Get Rich Quick” Projects**

As mining and trading became less profitable due to increasing gas fees and electricity costs, the market shifted towards quick profit projects. These often lacked substance, focusing more on capitalizing on buzzwords like “tokenization,” “blockchain,” and “decentralization.” While the technology held potential, many of these projects were simply repackaged ideas with no real-world application or problem-solving capability.

**The NFT Craze: From CryptoKitties to Axie Infinity**

The NFT boom marked the next big trend. Starting with CryptoKitties and later exploding with projects like Axie Infinity, NFTs captured the imagination of both creators and collectors. However, beyond the initial excitement, many NFT projects struggled to find a sustainable use case or broader adoption. The technology was innovative, but without clear utility or integration into everyday life, many NFT projects fizzled out.

**Infrastructure and Interoperability: Tackling Goliath Challenges**

As the market matured, attention shifted to solving more significant challenges like infrastructure and interoperability. Projects aimed at improving the scalability, speed, and connectivity of blockchains became the new focus. This period saw substantial technological advancements, but once again, the space became crowded with projects all promising similar solutions.

**The DeFi Revolution: Onboarding the Unbanked**

Decentralized Finance (DeFi) brought the promise of financial inclusion to the forefront. By offering banking services without intermediaries, DeFi platforms aimed to empower the unbanked and underbanked populations. While DeFi has made significant strides, it still faces challenges in achieving widespread adoption. The potential is there, but the market continues to grapple with trust issues and regulatory hurdles.

**The Boom and Bust Cycles**

With each new trend comes a boom, followed inevitably by a bust. As the market expanded, so did the number of scams, rug pulls, and fraudulent projects. This cycle has made it increasingly difficult for new projects to gain trust and stand out.

**The Current Era: AI Tokens and RWA Tokenization**

Today, the latest trend involves AI tokens and the resurgence of Real-World Asset (RWA) tokenization. These projects promise to bridge the gap between the digital and physical worlds, but once again, the challenge lies in distinguishing genuine innovation from mere hype.

The issue with many of the projects we’ve seen over the years is that they are driven by trends rather than genuine innovation. Many new entrants into the Web3 space lack the long-term perspective needed to build solutions that endure. They are often focused on what’s currently trending, without considering whether their project addresses a real problem or offers lasting value.

These projects fail to stand out because they are not designed with longevity in mind. Instead of creating a product that solves a problem or improves users’ lives, they focus on riding the wave of the latest trend. While this can lead to short-term success, it rarely results in a lasting impact.

### How to Stand Out: Build for the Long Term

If you want to create something truly innovative in the Web3 space—or in any field—your focus needs to be on building for the long term. Here are some key principles to guide you:

1. **Solve Real Problems**

   – Innovation begins with identifying a genuine problem that people face and finding a way to solve it. Your project should address a pain point or make life better for users. This is what differentiates long-lasting products from those that are merely trendy.

2. **Think Like a Web2 Developer**

   – While Web3 technology is exciting, remember that the end-user typically cares more about the solution than the underlying tech stack. Whether your product is decentralized or runs on the latest blockchain protocol is secondary to whether it works seamlessly and solves their problem.

   – **Example**: Think about the apps you use daily—how many of them are Web3? The average user doesn’t know or care about the tech stack behind platforms like Facebook, Amazon, or Google; they care about the service these platforms provide. Similarly, your Web3 project should prioritize usability and solving real-world problems over flashy technology.

3. **Make Your App a Verb**

   – Aim to build something so integral to daily life that it becomes a verb. Google, Uber, and Zoom are examples of products that have transcended their brand names and become part of everyday language. This should be your aspiration in Web3—create something indispensable.

4. **Don’t Decentralize for Decentralization’s Sake**

   – Decentralization is a powerful tool, but it’s not a solution in itself. Before deciding to build a decentralized platform, ask yourself whether decentralization is necessary for solving the problem at hand. If it’s not, consider whether a more centralized approach might be more effective.

5. **Avoid the Bandwagon**

   – Just because a particular type of project is currently trending doesn’t mean you should jump on board. Innovate by identifying what’s missing in the market, not by copying what’s already popular.

6. **Think Long-Term**

   – Focus on creating a legacy rather than chasing short-term gains. A truly innovative project should be designed to outlast trends and cycles, offering sustained value to its users.

Innovation in the Web3 space isn’t about following trends; it’s about solving real problems and building for the long term. By focusing on what truly matters—creating value, solving problems, and thinking beyond the latest fad—you can stand out in a crowded field and create something that lasts. As the Web3 space continues to evolve, those who build with purpose and vision will be the ones who leave a lasting impact.