Not a very web3 exclusive take but narrow positioning works against you when done too early.

Many founders niche down before testing broader markets. Dangerous move.

Take Slack.
They didn't start as "messaging for engineering teams."
They tested with gaming communities first.
The engineering niche found them.

Or look at Notion. They began broad.
"All-in-one workspace."

Only later they dominated specific verticals like startup docs and wiki tools.

Your super-specific niche should come from market pull (not from day one assumptions)

Test wide.
Niche down when users tell you where you're winning.