Is Web3 the future? A transformation from technological vision to real-world ecosystem

Ethereum co-founder Vitalik Buterin recently publicly supported the privacy work of Tornado Cash developers, emphasizing “from start to finish, I have been a believer in the importance of privacy.”

At the same time, Uniswap’s daily fee capture revenue reached $1.4 million, setting a new record.

01 The Basic Logic of Web3

As a new paradigm of decentralized networks, Web3’s core is to return data ownership and control from centralized platforms to users through blockchain technology. Unlike the Web2 era where user data was monopolized by tech giants, Web3 has built a new system where users own digital assets, control personal data, and directly participate in network governance.

This new system is gradually gaining scale. By 2025, stablecoin trading volume will have increased by 72% year-over-year, reaching a record high of $33 trillion.

Behind these numbers are the proliferation of decentralized finance (DeFi) and non-fungible tokens (NFTs), which redefine the way value is exchanged in the digital world.

02 Macro Trends Driving Change

Multiple macro factors are driving the development of Web3. The attitude shift of major global economies toward digital assets is particularly evident.

The South Korean government explicitly plans to promote the landing of spot ETFs for digital assets like Bitcoin in its “2026 Economic Growth Strategy.”

This policy signal indicates that traditional financial systems are gradually accepting crypto assets, creating a more friendly regulatory environment for Web3 applications.

Advances in technological infrastructure also fuel Web3 development. The Ethereum network continues to upgrade, with the 172nd core developer meeting successfully activating BPO2, and Blob Target has been improved. These technical improvements directly enhance network scalability and efficiency.

03 Gate’s Web3 Ecosystem

As a leading global crypto trading platform, Gate has built a comprehensive Web3 ecosystem. The platform offers services covering the entire chain, from trading and storage to application interaction.

Taking Gate’s native token GT as an example, as of January 9, 2026, GT’s trading price was approximately $10.28, with a market cap of $802 million. GT is not only a tool for paying transaction fees but also the governance token of the GateChain ecosystem.

GateChain is Gate’s independently developed public chain, with a block time of 4 seconds and transaction fees as low as $0.0001. The network is fully compatible with the Ethereum Virtual Machine (EVM), allowing developers to easily deploy Ethereum smart contracts.

Gate’s Web3 wallet supports users managing digital assets directly without relying on third-party services, enhancing asset security.

04 Featured Product GTETH Analysis

A highlight product in the Gate ecosystem is GTETH, a liquid staking token representing staked ETH on Gate. Users can convert ETH to GTETH at a 1:1 ratio and earn staking rewards on the Ethereum Beacon Chain.

The unique aspect of GTETH lies in its staking reward mechanism. Holding GTETH allows users to earn an annualized yield of about 2.8% - 3%. When combined with Gate-specific incentives, total annualized returns can reach 6% - 10%. This model provides a liquid staking solution, solving the asset lock-up problem in traditional staking.

05 Market Sentiment and Outlook

The market is optimistic about Q1 2026, partly due to changes in macro liquidity. As major central banks worldwide shift monetary policy toward easing, new liquidity entering the system usually flows first into high-volatility sectors, with cryptocurrencies being most sensitive to monetary expansion.

From position data, current market funds are at relatively high cash levels, and derivatives positions remain defensive. This positioning suggests that when macro environments change, it could trigger sharp position adjustments.

From a technical perspective, Bitcoin broke through recent highs on January 9, 2026, indicating increased buying momentum. Market sentiment on the Gate platform also shows expectations for Q1 2026, with some predicting “larger-scale Bitcoin rallies and 10-100x gains in more altcoins.”

06 Challenges and Risks

Despite the optimistic outlook, Web3 still faces multiple challenges. Security issues persist; recently, security agencies discovered three malicious npm packages disguised as Bitcoin-related libraries, highlighting ecosystem risks.

Regulatory uncertainty is another key factor. Different jurisdictions have vastly different attitudes toward digital assets; for example, Colombia’s tax authorities require crypto exchanges to report user data, while the US CFTC adopts a more lenient stance toward certain exchanges.

Scalability challenges remain unresolved. Although mainstream blockchains like Ethereum continue to upgrade, transaction speed and costs still hinder large-scale adoption.

07 Future Outlook

The future development of Web3 will follow diversified paths. On one hand, institutional adoption is accelerating; Morgan Stanley plans to launch crypto trading services on its E*Trade platform in the first half of 2026, indicating increased acceptance of digital assets by traditional finance.

On the other hand, privacy and protection will become key topics. Ethereum co-founder Vitalik Buterin’s public support for privacy tools reflects this trend. As regulatory frameworks improve, balancing privacy and compliance will be crucial.

Cross-chain interoperability and Layer 2 solutions will further enhance Web3’s scalability and user experience. Polygon’s near-acquisition of US Bitcoin ATM operator Coinme demonstrates the trend of ecosystem integration.

Future Outlook

Over 56% of the hash power in the Bitcoin network is now driven by sustainable energy. This not only reduces carbon footprints but also promotes the entire green energy industry by acting as an immediate buyer for renewable energy projects, providing clean heat as an alternative to fossil fuels, funding research into energy storage technologies, and mining using harmful methane emissions.

These seemingly unrelated developments actually outline the trajectory of Web3’s evolution from fringe to mainstream, from experiment to regulation.