I recently spoke with Hatu Sheikh, the Founder of Ape Terminal where he shared his insights on  Web3 trends and ongoing developments in the Web3 funding space. We also explored advancements in blockchain gaming and the transformative potential of real-world asset tokenization in finance. I hope you enjoy the insights shared in this discussion. It’s a pleasure to speak with you, Hatu. Web3 is clearly making a comeback in 2024. What’s your review of 2023 and how are things going to pan out this year? Comeback is the word being used commonly. But it didn’t fade in the first place, if you ask me. While the hype dropped significantly due to the bear market, the real, long-term projects were always at work. The number of Unique Active Wallets (UAWs) increased 124% YoY in 2023. This didn’t happen in a day but steadily throughout the year. Despite a slight dip earlier in the year, NFTs saw about 166% in new wallet activity. DeFi’s Total Value Locked (TVL) grew by 77% over the year, reaching some $103 billion. Ethereum, as always, maintained its dominance. But Layer-2s like Optimism and Arbitrum emerged as superstars. And that highlights another key point. 2023 wasn’t only about statistical or financial growth. It was also the year of core innovations signaling the industry’s increasing maturity. From Rollups to Zero-Knowledge Proof systems, we made a huge progress towards better speeds, scalability, decentralization, user-experience. That too, while lowering costs and risks for end-users or investors overall. The total loss from hacks and frauds was about 96% less. So yes, 2023 was indeed a great year under the hood. This will continue in 2024. In fact, with robust infrastructure and resilient processes coming up, it’ll be better if anything. Through your work with Ape Terminal, what do you see as the key trends in the Web3 funding space right now? The way I see it, maturity is the key theme for this year. Seeking out mature projects and helping novices improve is our top priority at , as it is in the broader Web3 funding space. Ape Terminal Innovative ideas are a necessity. But they’re not enough for long-term success. That’s one of the lessons we learned in the past market cycles. To paint a clearer picture, VCs and investors now prefer projects with strong teams that have the skill set and zeal to execute their vision. Even if they don’t necessarily have a demonstrable track record of doing so. Critics might say this is too subjective. But when you’ve been in this industry for long, you can very well separate the husk from the grain. Based on well-defined parameters, of course, not arbitrarily. For example, does the project have a demonstrable market potential? Or, does it have a business model that can be viable long-term? Are the tokenomics sustainable, and are there genuine utilities attached to the solution or platform being offered? Then there are considerations around user experience, security, and stability. Now, more than ever, it’s mission-critical for projects to have these on their priority list. Overall, Web3 projects that thrive in 2024 will have solid foundations. Hype alone won’t get them far anymore. They must optimize for intrinsic value and work with a long-term vision. Gaming has emerged as one of the strongest blockchain-powered sectors in recent years. What has changed since the days of Axie Infinity or Crypto Kitties? Although there’s still a long way to go, the user experience has improved a lot. Blockchain games have better graphics and gameplay, for instance. Wallets don't keep popping up constantly thanks to session keys. Integrating L2s into the mix has also improved the speed and responsiveness of games. Gameplays have become more nuanced as a result, and thus, more engaging for end-users. Real Web3 games are evolving rapidly—it’s not all boring, turn-based games anymore. But quality improvement is only one part of the story. Something more important is happening alongside, which the so-called masses don’t often realize. We’re witnessing the rise of fully on-chain games that are functional, resilient, and immersive at a whole new level. With titles like Dark Forest entering the market, Web3 games are moving way beyond in-game assets and ownership. They foster grassroots game development—almost unimaginable in Web2—by giving users genuine control over the game logic. Meaning, individual gamers or the community as a whole can actually set the rules of the game. They’re no longer at the mercy of centralized, corporate gaming studios and publishers. It’s a revolutionary shift, and I’m super bullish about what this new era of gaming could bring for end-user participation, autonomy, and decentralized creator economies. To conclude, I am curious to also examine real-world asset tokenization as it is another strong force shaping the future of finance. What’s your take on RWAs? There’s good reason to look at RWAs as a future-shaping force. Tokenization isn’t novel, as such, but we’re certainly exploring new avenues right now. I see many interesting trends emerging in this sector. Stablecoins—the OG tokenized asset class—have achieved a $125B+ market cap and are considered the epitome of programmable money. They’re indeed a great means of fast and low-cost cross-border transactions. Particularly for individuals from weaker economies with unstable currencies and very high inflation. Tokenized treasuries, with a roughly $700 million market cap, are a great way to bridge the gap between traditional and decentralized finance. They’ll give financial inclusion a big boost. Similarly, private credit channels—tokenized lending and borrowing systems—are boosting SMEs and extending DeFi’s benefits further and wider. Collectible financing is undergoing a revolution thanks to backed NFTs. By bringing physical collectibles on-chain, they unlock untapped value. You can lend or borrow collectibles, for instance, which was not possible beyond childhood games so far. The global collector’s market becomes more liquid, connected, and democratic as a result. I can go on about these, but let’s just touch on a few more. Sustainability is being incentivized through Regenerative Finance (ReFi); branded NFTs are enhancing community engagements; international bank settlements have become faster, more cost-efficient, and more secure.

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