Web3 Enters the Corporatization Era: Moving Beyond the Age of Exploration
Regulatory Integration Redefines the Rules of the Game
This report was written by Tiger Research, analyzing the structural shift of the Web3 industry as it enters the corporatization era.
TL;DR
Web3 industry now shifts from philosophical ideals to corporatization. This transition prioritizes real profitability and structured operations.
Market participants' deeper understanding, clearer regulations, and traditional financial capital accelerate this change. Web3 projects now face evaluation based on business results rather than ideology.
Corporatization manifests through strategic M&As for vertical integration and IPOs for institutional entry. Web3 moves beyond experimental exploration toward mainstream acceptance of institutional standards.
1. Web3 Industry: From Ideology to Business Focus
The Web3 industry reaches a critical turning point. It moves beyond philosophical and idealistic evaluation. The sector now transitions into a business-focused industry. In the past, "decentralization" served as the ideological core value. It occupied a more prominent position than business considerations. Projects gained recognition for their potential despite lacking immediate revenue models. The speculative cryptocurrency market boom reinforced this tendency.
Recent developments reveal distinct changes in this pattern. Projects now develop tangible revenue models. They face evaluation based on business performance. Some projects already generate substantial revenue and earn market recognition. The Web3 industry evolves from philosophical value to practical results.
This report examines this structural transition. It explores the new direction for the Web3 industry.
2. The Rules of the Game Are Changing
The rules governing the Web3 industry are changing. The industry now prioritizes practical results over narratives. This shift signals its progression to maturity. Three key factors drive this transformation. First, market participants have increased their understanding of the industry. Second, regulatory frameworks across countries have improved, accelerating the institutional integration of the Web3 industry. Third, traditional financial capital accelerates its flow into the industry. These developments establish stricter standards than previously applied.
Despite market maturity, the Web3 industry still responds to powerful narratives. The industry remains fundamentally based on the Attention Economy with a participant-centric structure. In this structure, narratives create emotional resonance through shared sentiment. This resonance leads to consensus. The consensus reflects in market value. Specific keywords or narratives continue to attract attention and drive rapid price increases even today.
Market participants have grown familiar with these patterns. This familiarity weakens market responses to narratives. Price rallies triggered by expectations alone struggle to sustain themselves. The magnitude of gains has diminished significantly compared to previous cycles. These developments reveal the increasing limitations of narrative-driven market structures.
Institutional integration and traditional financial capital accelerate this transition. Regulatory frameworks reduce uncertainty for projects. They simultaneously demand higher levels of transparency and accountability. Projects must now demonstrate actual business structures and operational performance. Attractive visions no longer suffice. Traditional financial capital operates similarly. It evaluates projects using quantitative metrics such as profitability, growth rates, and financial strength rather than short-term market reactions. The Web3 industry's evaluation criteria shifts from philosophy and ideals to business fundamentals. This change fundamentally alters the rules of the game.
3. Web3 Industry: From Age of Exploration to Corporatization
The Web3 industry undergoes fundamental changes in structure and strategy. Projects now focus not only on product market fit but also on traditional business metrics. These metrics include sustainable revenue models and stable cash flows. Projects evolve into organized corporate structures to achieve these goals. They adopt methods used by traditional companies. These methods include IPOs and vertical integration through strategic M&As.
3.1. The Background and Necessity of Corporatization
The early Web3 industry resembled an experimental ecosystem centered around small teams. The Web3 industry still operates like startups with emphasis on speed and small teams. However, structured operations gain importance as the industry grows. This mirrors the emergence of commercial enterprises during the Age of Exploration. Individual explorers initially sailed with royal or noble backing. Commercial companies emerged as trade routes opened and trade volumes increased. These organizations distributed risk and managed capital systematically. The Web3 industry transitions to corporatization for similar reasons.
3.2. Accelerating Growth Through Corporate Expansion Strategies
The Web3 industry pursues corporatization beyond mere organizational growth. It actively expands business operations and widens connections with institutional capital. This process develops in two major directions. First, companies pursue ecosystem integration through vertical integration. Second, they seek entry into institutional systems through IPOs.
Vertical integration through aggressive mergers and acquisitions integrates key value chains within ecosystems. This represents an inevitable change as the industry matures and competition intensifies. Companies need to unify user experiences. They must create synergies between services to secure market share. Jupiter exemplifies this transition by integrating trading functions across the Solana ecosystem. Jupiter acquires several companies. These include meme coin trading app Moonshot, NFT marketplace DRiP Haus, and crypto investment portfolio service SonarWatch. Similarly, crypto payment company Moonpay acquires Solana-based payment app Helio. Stablecoin issuer Circle acquires Hashnote.
These vertical integrations represent an important paradigm shift in the Web3 industry. They may appear similar to traditional corporate growth strategies on the surface. However, they signal fundamental changes in Web3 principles. Decentralization and community governance once stood as core values of early Web3. These values now adjust for efficiency and economies of scale. This evolution shows Web3 projects prioritizing market competitiveness and sustainability over ideological values.
Meanwhile, companies actively pursue institutional entry through IPOs. Circle strengthens transparency by disclosing USDC reserve management details while pursuing an IPO. Coinbase transformed into the first Web3 company to adopt accounting standards and disclosure systems through its NASDAQ listing. These institutional entries show Web3 projects evolving beyond technical experiments into stable corporate structures. They establish foundations to resolve regulatory uncertainties. They secure institutional investor trust. They gain access to broader markets and user bases by adopting traditional capital market norms and requirements.
4. Closing Thoughts
The Web3 industry enters the corporatization era. Projects reorganize around structured operations and measurable business results. This shift moves the industry beyond a phase where potential and philosophical ideals shaped value.
Institutional integration pushes this transition forward. Stakeholders now demand structural sustainability, not just technical experimentation. Projects must explore practical utilities grounded in decentralization—and turn them into real business opportunities.
This shift isn't temporary. It marks a necessary step to bridge the gap between idealism and long-term viability. Corporatization doesn't replace the original vision. It strengthens what early narratives often ignored: investor protection, operational accountability, and trust-based market systems.
The Age of Exploration revealed new frontiers. Today, corporatized Web3 projects build on those discoveries and lay the foundation for broader market expansion. What happens in this next phase will shape the industry's future—and demands close attention.
🐯 More from Tiger Research
Read more reports related to this research.Disclaimer
This report has been prepared based on materials believed to be reliable. However, we do not expressly or impliedly warrant the accuracy, completeness, and suitability of the information. We disclaim any liability for any losses arising from the use of this report or its contents. The conclusions and recommendations in this report are based on information available at the time of preparation and are subject to change without notice. All projects, estimates, forecasts, objectives, opinions, and views expressed in this report are subject to change without notice and may differ from or be contrary to the opinions of others or other organizations.
This document is for informational purposes only and should not be considered legal, business, investment, or tax advice. Any references to securities or digital assets are for illustrative purposes only and do not constitute an investment recommendation or an offer to provide investment advisory services. This material is not directed at investors or potential investors.
Terms of Usage
Tiger Research allows the fair use of its reports. ‘Fair use’ is a principle that broadly permits the use of specific content for public interest purposes, as long as it doesn't harm the commercial value of the material. If the use aligns with the purpose of fair use, the reports can be utilized without prior permission. However, when citing Tiger Research's reports, it is mandatory to 1) clearly state 'Tiger Research' as the source, 2) include the Tiger Research logo. If the material is to be restructured and published, separate negotiations are required. Unauthorized use of the reports may result in legal action.