From on-chain symbols to real-world culture, the next competition of Web3

After multiple iterations, the Web3 world has made significant progress in dimensions such as infrastructure, performance, and verifiability. However, surprisingly, the user base has not grown in tandem. The decline in capital enthusiasm, tightening regulations, and the distraction of user attention have forced the industry to re-examine a long-neglected question: when technological advantages are no longer a scarce resource, what can truly attract and retain mainstream users?

Increasing signs indicate that the market is shifting from "technology-driven" to "culture-driven." We see that the performance gap of Layer 2 solutions is narrowing, wallet experiences are becoming homogenized, and the technical narratives of various protocols are gradually falling into a cycle of internal competition. No matter how fast a chain is or how lightweight the proof is, if it cannot enter the context of real life, technology is unlikely to generate real social impact. The successful paradigm of traditional internet has long proven: technology is merely infrastructure; what truly occupies users' minds are often cultural symbols, emotional connections, and the reshaping of lifestyles. The industry needs a new way of connection—a way that can bridge on-chain and off-chain, while also being accepted by mainstream culture. This is not just a shift in marketing strategy, but a fundamental migration of the entire industry's value creation logic.

Why Do Most Projects Fail to Cross the "On-Chain Walls"?

In the past few years, countless teams have tried to bring their products into the mainstream spotlight, but most have stopped at similar bottlenecks. A large number of projects have users concentrated in Discord, X, and on-chain interactions; once they leave these domains, the brand's presence almost disappears. This closed ecosystem creates a paradox: project teams expend tremendous effort maintaining community engagement, yet find it difficult to convert these users into genuine brand advocates, let alone nodes for external dissemination. When a bear market arrives or trends shift, users leave without hesitation because they lack an emotional bond with the project, having only a speculative relationship. A deeper issue lies in the disconnection of narratives—many projects can generate buzz within their circles but struggle to convey their value to ordinary users. Concepts like "decentralized storage," "modular blockchain," and "zero-knowledge proof" are significant for developers but are completely jargon to the average person. The industry tends to define products using technical parameters, forgetting that what the public needs is "what can this do for me," rather than "how is it done."

To enter mainstream culture, symbols must be visible, tangible, and usable, while purely on-chain assets often lack these touchpoints. NFTs lie dormant in wallets, DeFi protocols hide behind interfaces, and DAO governance remains confined to forum discussions—these digitally native forms of value struggle to establish a presence in the real world, while traditional brands have long occupied users' physical and psychological spaces through stores, products, and offline events. These issues are not technical challenges but rather a lack of "expression methods" and "user pathways." Most Web3 teams lack the genes for cultural production and dissemination, with team compositions primarily from technical and financial backgrounds, and they generally lack experience and understanding in how to create cultural IPs, tell resonant stories, and design products that people want to wear and showcase. What the industry needs is not just functionality, but a set of cultural capabilities that can bridge into the real world.

When Culture Becomes a True Asset Across Cycles

From various successful phenomena, it can be seen that if a Web3 project wants to truly transcend cycles, it often needs to possess three core capabilities: memorable visual and image recognition, products and experiences that can naturally integrate into daily life, and cultural openness that can attract mainstream media and offline channels.

In an era of information overload, memorability equates to communicability. Successful Web3 IPs often have highly recognizable visual systems that allow people to identify and associate them at a glance. This recognition should not only exist in the digital world but also transition smoothly into physical products, offline spaces, and mainstream media. More importantly, the essence of cultural influence is the penetration of lifestyles. When the symbols of an IP begin to appear on people's clothing, phone cases, and coffee mugs, and when its stories become topics of social conversation, it has truly entered mainstream culture. The key to breaking the circle lies in gaining recognition and amplification from traditional cultural systems, which means projects need the ability to engage in dialogue with mainstream media, attract spontaneous participation from public figures, and enter traditional cultural dissemination channels such as offline retail, exhibitions, and events. While technology as a foundational logic remains important, what truly penetrates the crowd is often cultural symbols, not technical details. The industry has traditionally measured influence using "on-chain metrics," but future competition will rely more on a comprehensive capability: the triple landing of narrative + culture + product.

Pudgy Penguins' Multi-Line Breakthrough in the Real World

In the past year, Pudgy Penguins, an IP from the Web3 world, has demonstrated a rare ability to cross boundaries, becoming a unique real-world example in the industry. Recently, U.S. Congressman William Timmons proactively changed his social media avatar to the Pudgy Penguin image, quickly sparking global user attention and discussion. This is not merely a celebrity effect but a breakthrough at the level of cultural identity—a political figure willing to use a Web3 symbol to represent his public image signifies that this IP has crossed the "cryptocurrency niche" and begun to be accepted by mainstream society.

Source: X

Earlier, Pudgy Penguins had already made breakthroughs in the physical commercial sector, with its toy products entering over 2,000 retail stores like Walmart, achieving sales exceeding tens of millions of dollars. These adorable penguin toys sit on shelves alongside traditional IPs like Disney and LEGO, and many buyers may not even know that this brand comes from Web3; they are simply attracted by the design and moved by the story. Building on this, Pudgy Penguins reached a co-branding partnership with the benchmark brand Bearbrick in the trendy toy sector, officially entering the global trend toy collection system and gaining recognition from traditional trend culture in terms of aesthetics and branding. On the product side, its mobile game Pudgy Party won the "Best Mobile Game of the Year" award, with downloads surpassing millions, the vast majority of users coming from outside the Web3 circle, opening a true gateway for on-chain culture to mainstream users.

These actions are not isolated bursts but a complete path demonstration: starting from on-chain, penetrating culture, and then moving to real commercialization and mass dissemination. As the community states: "The world will huddle"—Pudgy Penguins has answered the industry's long-standing question with concrete actions: how can Web3 IP truly step out of its small circle? The answer is multi-line advancement, systematically establishing a presence in the real world while maintaining on-chain value. The long-awaited "on-chain narrative moving into reality" has here first appeared with systematic evidence.

The Next Phase of Web3 Needs "Visible Value"

Technology will continue to drive the industry forward, but what truly determines whether it can enter the mainstream is whether culture can resonate with people, whether products can enter lives, and whether stories can make the world willing to listen. After going through multiple cycles, the industry has returned to its starting point: to let more people see, and to let more people be willing to participate.

The on-chain world often starts with code, but true influence ultimately lies in the real world. When Web3 projects begin to think about how to make their symbols appear on the streets, in people's daily conversations, and in the childhood memories of the next generation, the industry has truly found its path to the public. Technology creates possibilities, while culture determines how far those possibilities can go.