How AI Crushed – The Shocking Collapse of Blockchain Dreams

The hype around was huge. It promised a new internet where users own their data, no big tech controls everything, and blockchain changes the game. But between 2023 and 2025, it faded away. Developers left, money dried up, and real uses vanished. Why? AI took over.

A Reddit thread in early 2025 said it all. One dev wrote: “All the fans switched to AI.” Another added: “ was fake. It just tricked people into buying worthless tokens from young guys with no real skills.”

The stats prove it. funding dropped 74% from $26.6 billion in 2022 to under $7 billion in 2023. By mid-2025, it was just $2.09 billion – down 45% from 2024. AI? It grabbed $124 billion in 2024 alone.

What Was Supposed to Be?

was the next web version after Web 1.0 (static sites, 1990s) and Web 2.0 (social media, user content). Coined by Ethereum’s Gavin Wood, it mixed old-school decentralization with modern apps. Users would “read, write, own” – control data with crypto keys, no middlemen.

Key parts:

• Blockchain: Shared ledger for safe transactions.
• Smart contracts: Auto-run code for deals.
• Cryptos: Money like Bitcoin, Ethereum.
• NFTs: Unique digital items.
• DAOs: Group votes via tokens.
• dApps: Apps on blockchain, not servers.

Promises: Privacy, no censorship, real ownership, easy peer payments. Sounded great, but it flopped.

The Metaverse Flop: Empty Worlds, Big Hype

Metaverse was ‘s big show. Places like Decentraland (launched 2020, raised $26M ICO) and The Sandbox sold virtual land as NFTs. Prices soared – land from $20, tokens pennies to dollars.

But users? Tiny. In 2022, Decentraland had 379 daily users, Sandbox 616 – despite billion-dollar values. Roblox (no blockchain)? 52 million daily users.

Sales crashed: Virtual land volume fell 99% from $64M weekly peak to $700K. By 2023, just $50K weekly on Decentraland. Tech issues: Lag, glitches, empty spaces. Reviews mocked empty raves and bad graphics vs. Fortnite.

Brands Threw Billions at – And Got Nothing

Big names jumped in 2021-2023:

• Nike: Bought RTFKT for $100M+, launched NFT shoes, .SWOOSH platform. 9 collections.
• Adidas: “Into the Metaverse” NFTs, $93M volume, Sandbox land.
• Gucci: NFT videos ($25K sale), Sandbox vault, Otherside relics.
• Tiffany: $50K CryptoPunk necklaces.
• Others: Puma, Burberry, LV, D&G, Starbucks Odyssey, NFL NFTs, Budweiser.

42% of top 50 fashion brands did NFTs. Trademarks flooded for metaverse goods. Total spend? Billions. Result? Low engagement, quiet exits by 2024.

Ad Agencies Tried Too – Then Pivoted to AI

Giants like WPP, Publicis ($11B AI bet), Omnicom chased blockchain for ads, data. PR firms like Serotonin, Coinbound boomed on crypto hype. But as tanked, they shifted. Now it’s LLM optimization for AI search.

Funding Crash: From Boom to Bust

2022: $100M+ rounds everywhere. 2023: Down 78%, just 8 big ones. 2025 H1: $2B, 45% drop YoY, fewer deals. Categories like metaverse/gaming funding halved. Investors fled to AI.

AI’s Explosion: Real Wins, Massive Cash

AI market: $279B in 2024, to $1.8T by 2030. Agentic AI (auto-workers) got $1.1B, jobs up 985%.

Ads lead: Yahoo DSP agents fix campaigns auto (2026). Amazon, Google Ads AI tools. Walmart AI creatives. IAB agentic roadmap. Marketers love it – 61% excited.

AI’s Dark Side: Energy Monster

AI guzzles power. US data centers: 183 TWh in 2024 (4% total power), to 426 TWh by 2030. Global: Like a top-10 country user.

One ChatGPT query = 5x Google search power. Image gen: 3Wh+. Emissions up (MS +30%, Google +50%). Water: Millions gallons/year per center. Bills rise for homes ($16-37/mo).

Fixes? Nuclear, efficiency (Google cut 33x energy/prompt), regs like EU AI Act. But growth scares.

Why Died: Bad UX, Hacks, No Speed

90% projects failed ($112B wasted). NFTs: 93% volume drop. 17 games shut 2025. Hacks: $3.1B H1 2025.

UX killer: 68% ditch wallet setup (seeds, gas fees). Devs: 84% on AI, <10% . Blockchain = slow (15 TPS vs Visa 1000s), costly, rigid (no reversals).

“Glorified database,” devs say. FOMO drove it, not value.

Lessons for Marketers: Ditch Hype, Grab AI

Redirect budgets to AI: Auto-optimizing campaigns (Meta +29% ROAS), Google AI targeting. Retail media booms. Test real results, ignore buzz.

Survivors? Niche Only

Stablecoins ($200B+), DeFi payments, supply chains, enterprise ledgers. Not the full vision.

Final Take: AI Wins Because It Works Now

promised tomorrow, delivered nothing. AI fixes today – easier, faster, profitable. Devs, cash, users chose AI. AI crushed . Focus there, watch environment, win big.

Tech must serve people. forgot. AI remembers.

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