PERSPECTIVE Series #1
About Perspective Series:
- It’s a collection of essays and product notes that unpack how we think, build, and ship at OVERTAKE. The focus will be on why we build it that way.
- This is our way of offering a window into our product philosophy; grounded in iteration, validation, and community feedback.
From PvP to PvE: Why Application‑Driven Web3 Is the Key to Real Adoption
Web3 Today — A Disconnect Between Hype and Reality
The current state of Web3 can feel fundamentally broken. On paper, the crypto industry boasts eyepopping token market caps and billion-dollar “ecosystems”, yet actual usage often lags far behind the hype. In extreme cases, projects valued in the billions have only a few hundred daily active users. For example, this report found that metaverse platforms, Decentraland, and, The Sandbox, each had fewer than 1,000 daily active users despite valuations above $1 billion.
This kind of disconnect between price and usage has become commonplace — tokens soar on speculative fervor, even when the underlying dApps have sparse traction. Why does this happen?
A major reason is that much of Web3 has evolved into a speculative player‑versus‑player (PvP) market, rather than a user-driven economy. Value in many crypto projects comes not from delivering products people genuinely use, but from financial engineering and zero-sum trading games. Tokens are launched, hyped on Twitter and Discord, and pumped to high valuations — not because millions of new users are onboarding, but because existing crypto traders are cycling liquidity from one fad to the next.
It’s a self-referential loop. Participants “liquidity hop” across meme coins and hype tokens, chasing quick profits in a zero‑sum wealth transfer. When one token’s narrative fades, the crowd moves on to the next, leaving behind a graveyard of projects with fleeting lifespans. The result is a “Ponzi‑like” market structure where gains for early speculators come at the expense of later ones, and sustainable utility takes a backseat. This speculative PvP dynamic has led to a misallocation of resources, and a detachment from real value creation. Enormous capital and talent poured into copycat tokens, yield farms, and Ponzi-economic games, rather than solving real user problems. As an intermediate report observed, the industry became “overly financialized, leading to misallocation of resources and a disconnection from value creation”. In short, Web3 at large became very good at creating tradable assets, but not as good at creating products people outside the crypto bubble want to use. Price often became unmoored from fundamentals — a dynamic unsustainable for long-term growth.
A Framework for Web3 Value: Who Do You Really Serve?
To chart a path forward, it helps to categorize Web3 projects by the type of value they create and to whom that value is delivered. We can borrow terminology from gaming to draw a useful distinction: Player-vs-Player (PvP), vs Player-vs-Environment (PvE). In crypto terms, this translates roughly to closed‑loop, zero‑sum value vs open‑loop, value‑creating ecosystems.
PvP Crypto — Closed Internal Value Loops:
These projects primarily shuffle value among existing crypto participants without bringing in fresh usage from the outside world. Their economic activity is inward‑facing and competitive: traders and insiders trying to outsmart each other for financial gain. In PvP dynamics, one user’s gain is another’s loss; the “product” is often simply a token that people trade. As the Bitget Academy puts it, PvP crypto is characterized by short‑term trading hype, liquidity hopping, and wealth transfer between buyers and sellers, usually ending as a zero‑sum game Most meme coins, pump-and-dump schemes, and unsustainable DeFi yield farms fall in this bucket. They thrive on community hype and FOMO, but when the music stops, little of lasting value remains.
PvE Crypto — Open Value Creation:
By contrast, PvE-aligned projects are those that create real value by engaging with the outside “environment” — i.e. the broader world of users, businesses, and economies beyond crypto. Instead of pitting participants against each other in a zero-sum race, these projects aim to deliver useful products or services, so that success is measured by growth in genuine usage, not just token price. Quality matters more than quantity: a PvE project might focus on one or a few core products with strong utility and engaged communities. Here, token value (if there is a token) flows from real adoption. For example, fees from a platform’s actual users, or demand for tokens because they unlock a useful service. In an ideal PvE model, monetary gains come from revenue streams tied to real usage, rather than solely speculative trading. The growth tends to be steadier and more sustainable, because it’s underpinned by utility and external inputs, not just cyclical hype
Most of today’s Web3 landscape, unfortunately, is skewed heavily toward the PvP side. Entire sectors like memecoins or yield-farming DeFi are basically competing over the same pool of crypto‑native users and liquidity, recycling capital in a closed loop. Even many NFT and gaming projects have functioned this way — attracting primarily crypto speculators rather than true fans, resulting in short-lived “flipping” frenzies instead of lasting communities. When nearly all projects target the same niche of token holders, they inevitably end up cannibalizing each other’s user base. We saw this with the myriad of “alternative Layer1s” and DeFi clones that exploded in 2021 — they weren’t onboarding totally new audiences, just incentivizing the crypto-savvy to bridge funds over for an APY, until the next chain dangled a better reward. This is classic PvP: a zero-sum contest for transient liquidity.
The irony is that while crypto markets are global and 24/7, the actual active user population remains tiny relative to the billions of internet users. The global crypto ownership rate is still in the single‑digit percentages of the population, and active Web3 dApp users are an even smaller fraction. Thus, fighting over the same hardcore crypto users is a limiting strategy. True mass adoption will only come when projects break out of this closed loop and engage new users who weren’t in the crypto game at all.
The PvE Opportunity — Bringing New Players and Capital into Web3
Real, durable growth in Web3 will come from what we can think of as “PvE dynamics” — in other words, products and protocols that interface with the broader environment (the traditional economy and everyday users) to bring in new value, new users, and new use cases. Instead of purely extracting value from one crypto trader to give to another, these projects add value by connecting crypto to external needs or markets. Two major vectors stand out as the clearest paths for this “Player vs Environment” growth:
1. Embedded Crypto Primitives in the Real World
One powerful vector is integrating core crypto primitives — such as digital currencies, tokens, and smart contracts — into existing mainstream systems and businesses. Think of this as “embedding” Web3 tech into Web2 contexts to solve problems or unlock efficiencies that existing systems can’t. The outside world doesn’t adopt “crypto” for crypto’s sake; it adopts solutions to its real needs. So when blockchain tech quietly makes something faster, cheaper, or more open, we get organic PvE growth.
Stablecoins are a prime example. Originally used mainly as a trading tool on crypto exchanges, stablecoins have now leapt into broader use as a superior form of cross-border money. In 2023–2025 we’ve seen an explosion in stablecoin payment volume, to the point that blockchain stablecoin transactions have OVERTAKEn the volumes of major card networks like Visa and Mastercard globally. That means everyday people and businesses are beginning to use digital dollars for commerce and remittances, not because they’re crypto enthusiasts, but because stablecoins offer faster, cheaper transactions. Payment giants like PayPal and Stripe have integrated support for stablecoins in their platforms, essentially embedding crypto’s payment rails into familiar services. Importantly, much of this growth comes from emerging markets and cross‑border use cases where stablecoins solve real pain points (like high remittance fees or currency instability). Every time a user in Argentina or Nigeria opts to hold value in USDC instead of a volatile local currency, or a freelancer in the Philippines gets paid via a stablecoin instead of waiting weeks for an international bank wire, that’s new value flowing into the crypto economy from the outside world. It’s a PvE win.
Another rising example is tokenized real‑world assets (RWA). Financial institutions and fintech innovators are starting to bring traditional assets — from U.S. Treasuries to real estate — onto blockchain rails as tokens. This bridges massive pools of capital from the “real environment” into Web3. Recent data shows over $20 billion in real‑world assets have been tokenized on‑chain (and growing rapidly). Major players like BlackRock have launched tokenized funds (e.g. a tokenized money market fund) that let on-chain investors access yields from real-world treasuries. The appeal is obvious: a decentralized stablecoin or DeFi platform can hold tokenized bonds and generate actual revenue from interest — injecting outside economic value into the crypto ecosystem rather than just printing more tokens. Participants get a real yield sourced from the external economy, making the system more sustainable. As one RWA platform founder noted, this sector is hitting new highs even in a bear market precisely because “it’s not just noise — it’s generating real and stable yield”. In the long run, tokenizing assets like bonds, commodities, or invoices could funnel trillions in value into Web3 blurring the line between the crypto economy and the traditional economy.
We also see “embedded crypto” in consumer platforms. Social media and gaming companies have begun integrating crypto assets in user-friendly ways — often without even using the word “crypto.” Reddit’s “Collectible Avatars” (essentially NFTs on Polygon) is a shining case: by designing a smooth user experience, Reddit onboarded millions of users to Web3 collectibles without fanfare. By mid-2023, Reddit had nearly 10 million unique holders of its NFT avatars, most of whom were just regular Redditors obtaining digital collectibles they enjoyed. This dwarfs the user base of most standalone NFT platforms and represents fresh users experiencing blockchain-backed ownership, many for the first time. Starbucks’ Odyssey loyalty program (issuing NFT stamps to customers) or Nike’s SWOOSH are similar “Trojan horse” approaches — embedding NFTs and tokens into familiar consumer experiences (loyalty rewards, brand collectibles). Users get tangible perks or fun collectibles; on the back-end, Web3 tech provides verifiable ownership and secondary market liquidity. The common thread is that embedded‑primitive projects meet users where they already are, and fulfill an existing desire — whether it’s faster payments, better yields, or digital collectibles — by quietly using crypto under the hood. They expand the tent by solving problems for non-crypto audiences, thus pulling new people and capital into the orbit of Web3.
2. Application‑Driven Web3 Products
The second major PvE vector is the pursuit of application-driven adoption — building compelling products and experiences powered by Web3 that attract users not because of token incentives, but because the product itself solves a real problem, better than what came before.
One of the first moments that gave the industry hope was Axie Infinity. At its peak in 2021, Axie onboarded millions of users — many from developing countries — into a Web3-powered gaming ecosystem. For the first time, blockchain wasn’t just the backend for DeFi or speculation, it was embedded inside a game that people actively played, earned from, and shared with others. For a brief period, Axie became proof that Web3 applications could drive mass user adoption.
But this momentum didn’t last.
Axie’s model, based on play-to-earn, suffered from deep structural issues. The economy was unsustainable. As more players joined, the token emissions outpaced real demand, and when the music stopped, the ecosystem collapsed. What began as a promising new category eventually revealed its flaws. We won’t go into detail here — that breakdown deserves its own section — but what matters is this: Axie created a moment where the industry genuinely believed that a Web3 application could go mainstream. That belief shaped the next few years of product development and funding cycles across gaming.
And yet, despite hundreds of follow-up attempts, no other game has recreated that kind of breakout success — not in usage, not in cultural presence, and certainly not in sustainability.
So what now?
While gaming has yet to deliver the killer app many hoped for, something else has quietly succeeded: the adoption of stablecoins. What began as tools for traders have now become real infrastructure for payments, remittances, and on-chain commerce. In some regions, stablecoin transaction volume already surpasses that of major card networks. Users — particularly in emerging markets — are turning to USDC and similar assets not because they care about Web3, but because they want faster, safer, more stable ways to send and receive value.
This stablecoin maturity sets the stage for a new kind of application: commerce.
As money flows onto the blockchain in more usable, stable forms, we believe application-driven Web3 will emerge in the form of commerce platforms — specifically those that offer real ownership, programmable settlement, and open interoperability. Peer-to-peer marketplaces, in particular, are well positioned: they solve clear user pain (fraud, high fees, payment delays), and they directly benefit from faster, trust-minimized settlements that crypto enables.
But there’s a catch.
Enabling true Web3 commerce isn’t just about plugging in wallets or accepting USDC at checkout. It requires rebuilding the core backend of the platform: payments, reconciliation, risk management, escrow — all of it. These systems were designed for Web2 assumptions. If you want programmable money and ownership, you have to start from scratch. This is not a UI-level change. It’s an infrastructure-level shift. That’s why so few commerce applications in Web3 have succeeded so far — and also why the opportunity is still wide open.
This is where we believe the next wave of adoption can begin — not with speculation, not with token emissions, but with products that simply work better for people who want to trade, own, and earn online.
OVERTAKE’s Strategy — Application‑Driven Web3 in Action
Where does OVERTAKE fit into this picture? OVERTAKE is firmly in the Application‑Driven Web3 camp. As a company building a next-generation peer-to-peer marketplace for gaming assets, OVERTAKE’s entire approach is about creating a product so useful and intuitive that it can onboard masses of gamers into Web3 (even if they don’t initially realize it’s Web3). This is not just a marketing narrative retrofitted to sound trendy; it’s an execution strategy the team has pursued from day one.
Application‑First, Not Hype‑First
From the outset, OVERTAKE has avoided the trap of building for crypto speculators. Instead, it targets gamers and their actual needs. The company is leveraging an existing affiliate network of over 30 million gamers who conduct $700 million in annual peer‑to‑peer trades on Web2 platforms — a massive user base that stands to benefit from a better marketplace. These are not “crypto natives,” and OVERTAKE isn’t expecting them to suddenly learn MetaMask or ape into tokens. Instead, the strategy is to meet them where they are and gradually introduce Web3 under the hood to solve their problems.
OVERTAKE’s approach includes:
Fiat‑to‑Stablecoin Settlement:
- To lower the barrier for new users, OVERTAKE supports familiar payment methods (credit cards, bank wires) and then converts to stablecoins behind the scenes for on-chain settlement to sellers. In the recent beta, users requested “familiar payment methods — Top up with a card,” which the team implemented. This way, a gamer can pay or cash out in regular currency, but still benefit from a crypto escrow (via stablecoins) that provides instant, global settlement. For example, beta testers were impressed with “receiving USDC immediately after the transaction”, not even realizing crypto was working its magic behind the UI. By abstracting wallets and crypto jargon away at the start, OVERTAKE removes friction — users get a faster, safer trading experience without needing to be crypto experts.
Discord‑Native Listings:
- OVERTAKE knows a huge amount of game trading activity happens informally in Discord communities. Rather than force these users onto an unfamiliar new platform, OVERTAKE is embedding its marketplace into Discord itself. Sellers can list their game items through OVERTAKE within Discord channels, where their reputations and social connections already exist. This design shows OVERTAKE’s application-driven mentality: integrate with the user’s environment (Discord, a gamer’s hangout) instead of expecting the user to come to you. It’s analogous to how embedded fintech works — slide into the existing user flow. For a gamer, seeing a bot or extension in their guild’s Discord that enables escrowed trades in a couple clicks is far more natural than being told to visit a dApp they don’t know. This strategy aims to pull in users by convenience — OVERTAKE becomes part of the fabric of gaming communities.
Gradual On‑Chain Layering:
- OVERTAKE isn’t going zero-to-sixty on full decentralization overnight, because that could sacrifice user experience. Instead, it’s taking a modular, phased approach to layering on Web3 features. The initial closed beta proved out the basics (fast escrow, low fees) in a semi-controlled environment. Next steps include adding a “trust layer” (likely on-chain reputation or identity) and expanding game coverage. Over time, more elements of the marketplace will migrate on-chain — asset tokens, fully decentralized escrow contracts, etc. — but always in a way that’s invisible until it’s mature. This ensures the product remains product‑first: new blockchain features are introduced only when they truly enhance security or user ownership, not as gimmicks. The end vision is a seamless experience where “ownership is verifiable, transferable, and secure” via smart contracts, without adding complexity for the user. By the time a regular gamer realizes they have a blockchain wallet (perhaps auto-generated via email login) or that their in-game sword is an NFT, they’ll already be enjoying the benefits (real ownership, the ability to sell safely) — so the crypto aspect feels like an empowering feature, not a hurdle.
Toward an Application Driven Web3: The OVERTAKE Way
While gaming hasn’t yet produced the killer app many hoped for, something else quietly has: stablecoins. Originally built as tools for crypto traders, stablecoins are now becoming default infrastructure for payments, remittances, and digital commerce. In some emerging markets, stablecoin transaction volume already rivals that of major card networks, not because users care about decentralization, but because they want fast, cheap, and reliable value transfer. It is a reminder that when a product truly solves a problem, adoption follows, even without speculation.
In that spirit, we believe the next frontier of Web3 will be driven not by volatility or hype, but by applications that create value people actually care about. We call this shift from speculation to utility the move from PvP to PvE. The PvP era rewarded early positioning and capital games. But the PvE path, the one that solves real world problems and expands the size of the pie, is harder, slower, but more meaningful.
At OVERTAKE, our strategy is decidedly PvE. We are not launching tokens and praying for pumps. We are solving for real behavior: peer to peer trading of digital game assets, a 55 billion dollar market long underserved by clunky UX and exploit prone escrow systems. Our closed beta tested the fundamentals. Without token incentives, 30 sellers generated 63 thousand dollars in volume across 195 trades in just three weeks, with a 27 percent sell through rate. Every trade reflected product value — fast settlement, low fees, and trust — rather than token farming. As one user put it, every transaction was smoother than expected and the fees are just way lower than usual.
We are not building theory. We are building based on decades of trading behavior from the Web2 world, with 30 million users, 700 million dollars in annual volume, and clear, observable pain points. We know what sellers want: speed, safety, and liquidity. Our monetization is grounded in small fees on successful trades, not emissions or subsidies. That means our incentives are aligned. More good trades mean more value for both users and the platform. That is the foundation for a sustainable loop.
More broadly, the industry is waking up to the fatigue of the PvP era. Attention alone is no longer enough. Every cycle burns out faster than the last. The next wave will not come from clever financial engineering, but from products that unlock new value, whether by embedding crypto in existing services or building new behavior from scratch. This is Application Driven Web3. Not a slogan, but a path forward that demands real product thinking, from onboarding flows to compliance to go to market execution.
OVERTAKE’s focus is narrow by design. We are not trying to change the world in one shot. We are starting with one vertical, peer to peer game commerce, and building something unmistakably better. A kid in Manila selling a rare skin to a collector in New York, in seconds, without fraud or friction. That is the experience we are aiming for. Not to shout this is crypto, but to quietly deliver something so useful people adopt it without caring what powers it underneath.
But ultimately, success depends not on theory, but execution. We believe what is needed is not more narratives or token design tweaks. It is product teams that build with discipline, ship fast, test hypotheses, and keep moving. That is what scaled Web2, and it is what will drive lasting adoption in Web3.
Our first experiment will test fiat to stablecoin settlement flow, along with the introduction of Seller Shops as atomic units of commerce.
Future Perspectives will share updates on these experiments and their results.
This is the OVERTAKE Way: a deliberate, hypothesis driven approach to product building, where we validate one assumption at a time, move carefully with real users, and stay focused on delivering long term value through execution.
About OVERTAKE
OVERTAKE is at the forefront of driving mass adoption in the blockchain market by leveraging its affiliates’ extensive gamer base of over 30 million users and $1 billion in annual transactions. OVERTAKE is revolutionizing gaming with collaborative game creation by publishing high-quality games that empower creators and engage players like never before.
Learn more : https://overtake.world
Vision Paper: https://overtake.gitbook.io/overtake-2.0
