Watching almost $3 trillion in web3-related asset value shrink by more than 70% is unnerving, to say the least. But the rise and fall of crypto isn’t really the issue. What counts are the core underlying technologies that have made web3 possible, a set of innovations that will have far-reaching implications for many parts of the global economy, private equity included.

The emerging web3 ecosystem now boasts thousands of companies funded by approximately $94 billion in start-up capital from venture funds, hedge funds, private equity, and other investors (see Figure 1). Major companies across industries—JPMorgan, Goldman Sachs, Google, and Disney among them—have begun to think about how web3 will influence their businesses and what it could unlock in terms of managing transactions and engaging with customers. Crypto and nonfungible tokens (NFTs) have led wealthy young consumers to some of web3’s foundational concepts, like digital wallets that can be used across platforms. Forward-thinking private equity firms are also focused on the ways in which blockchains, tokens, smart contracts, and related web3 technologies will affect how they invest and operate.

See more on Entreprenuer Al Arabiya.