The Hong Kong Web3 Carnival reflects the current state of the industry. Although it is quiet, it still shows the participation of Financial Institutions. Mainstream narratives like RWA can bring rise, but individual rights are overlooked. Future opportunities lie in optimizing infrastructure and practical projects, as the industry gradually develops towards rationalization and maturity.

Off-chain scalability depth analysis
1. The necessity of scaling
The future vision of blockchain is to achieve decentralization, security, and scalability, but it is often only possible to satisfy two of these at the same time, which is known as the blockchain's impossible triangle problem. Over the years, people have been exploring how to improve the throughput and transaction speed of blockchain while ensuring decentralization and security, that is, to solve the scalability issue.
The decentralization, security, and scalability of blockchain are defined as follows:
- Decentralization: Anyone can participate in the production and verification of the blockchain system. The more nodes there are, the higher the degree of decentralization.
- Security: The higher the cost of gaining control over the blockchain system, the greater the security, which can withstand a larger proportion of attacks.
- Scalability: The ability of a blockchain to handle a large number of transactions.
Both the Bitcoin and Ethereum networks have chosen to sacrifice some scalability in order to ensure the security and decentralization of the network.

The combination of DePIN and AI (DePAI) brings new opportunities for artificial intelligence and Bots technology by providing real data, dropping costs, and promoting Decentralization, driving industry development. Data and financing have significantly risen, attracting more investment and innovation in the future.

The founders of "Neo Pets", Adam Powell and Donna Williams, are developing the blockchain game Dragginz, which combines pet raising and open world elements. The game features innovative NFT design and is set to launch at the end of 2024 or early 2025, aiming to attract mainstream players.

Market Theme Review
The macroeconomic background is improving.
Recently, the macroeconomic environment shows a favorable trend for risk assets:
- Inflation cools down overall, with the U.S. June CPI showing a month-on-month decline for the first time in four years, and the core year-on-year growth rate hitting a new low in over three years.
- The job market has slightly softened, but overall it remains balanced and stable.
- The Economic Surprise Index is at a low point, indicating that economic data is below expectations.
- The Financial Conditions Index shows a continuing easing trend.
These factors are favorable for the performance of risk assets, as investors anticipate the Federal Reserve taking action to support economic expansion. Over time, concerns about inflation at the end of the first quarter have proven to be excessive. In the absence of a recession, a weaker dollar and the Federal Reserve beginning to cut interest rates may benefit emerging markets and cryptocurrencies.
The pressure of the second quarter earnings season is relatively high.
The current market focus is on the recently started earnings season. Market expectations are very optimistic, but it is difficult to achieve the level of surprises seen previously.

The article explores the true meaning of trust in the Web3 world, emphasizing that an immutable ledger is just the foundation; true trust stems from long-term transactions and high default costs among participants. In the traditional financial system, trust is built on repeated games and informal settlement mechanisms. Web3 should draw on this idea to create an environment where participants are willing to invest long-term, in order to achieve a deep-seated trust structure.

The Perp DEX industry is facing a rise dilemma, with volume reliant on Token incentives, daily active users significantly decreasing, and user growth efficiency being low. Enhancing user experience and lowering the entry barriers have become key to attracting users. In the future, improvements through technology such as trading Bots and AA Wallet may hope to improve the situation.

According to BlockBeats news on July 12, the PUMP Token public sale has completed over 60% of its sales progress in a short time. As of the time of publication, there are still 39.37% of the tokens remaining in the public sale.

The transformation and new trends of the Crypto Assets market
Token allocation and market performance
The token distribution and market performance of some well-known Crypto Assets projects in recent times are as follows:
| Token | Market Cap | Fully Diluted Valuation | Token Distribution | Price Change |
|------|------|--------------|----------|----------|
| BERA | $610 million | $2.8 billion | Airdrop 15.8%, Investors 34.3% | -61.6% |
| IP | 409 million USD | 1.6 billion USD | Investors 21.6% | -37.5% |
| GPS | 277 million USD | 1.5 billion USD | Airdrop 10%, Investors 19.33% | -32.0% |

The new generation of Decentralized Exchanges (DEX) is focusing on user experience and Liquidity, especially with the integration of chain abstraction technology, which will simplify the usage process and enhance Liquidity. When users conduct cross-chain transactions, they can enjoy an experience similar to that of a Centralized Exchange without needing a deep understanding of the underlying technology. There is great anticipation for this new product within the industry.