Lemmy and Mastodon feel like the real web3.
I think this decentralization and federation is what web3 is all about, without all the corporations calling everything to do with monkey pixel art that costs a million dollars "web3"
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What advantage would switching to crypto have? I'm not well versed in how Lemmy works yet but I don't see why Lemmy would need blockchain.
Because Crypto desperately needs new fodder for the bottom of the pyramid
Blockchain/proof of work is indeed not necessary, but identities should not be bound to instances. That's the thing #nostr gets right and the #fediverse doesn't.