Web3 Carnival Reflection: From Bubble to Value

The recent Hong Kong Web3 Carnival has sparked deep reflection among industry insiders. Although the atmosphere on-site was somewhat lackluster, this precisely reflects that the industry is undergoing an important transformation.

Unlike the lively scenes of previous years, this exhibition mainly features familiar project parties, with the VIP area vacant and very few attendees. This sense of emptiness reflects the differences between Eastern and Western Web3 philosophies. Western public chains still seem to regard the East as users rather than partners, and there are also divergences in the goals pursued by both sides.

This year's mainstream narrative RWA( real-world assets ) has become the focus, but it is essentially not much different from the hot topics of previous years such as NFTs, inscriptions, and memes. Macroeconomic narratives often overlook individual rights, and while capturing the mainstream narrative can indeed bring short-term growth, user retention is the real challenge. Currently, on-chain applications are still limited, and most are not daily necessities.

The situation of Ethereum founder Vitalik Buterin is also facing challenges. He firmly supports L2 scaling solutions, but this choice may bring new problems. How to balance the development of L1 and L2, avoiding a dilemma, tests the wisdom of decision-makers.

The Web3 gaming sector is also facing challenges. Although gaming itself is a good business, Web3 games struggle to retain users. Compared to complex gaming mechanics, users seem more interested in simple and direct financial activities. This situation forces game developers to rethink their strategies.

Although the market is cold, practitioners who have experienced past cycles understand better that bear markets are precisely opportunities for builders. Although fields like DeFi and NFTs have not fully realized their initial visions, applications such as stablecoins have been widely adopted. In the new cycle, institutions are taking over the market, and entrepreneurs need to adapt to the new rules of the game.

The future opportunities may lie in tools and application layer projects that have a clear business model and user base. Cryptography is facing bottlenecks, and many behaviors in the real world are difficult to prove with cryptography; these challenges may give rise to new opportunities. The key is to protect your attention, enhance your discernment, and maintain a good mindset amid the fluctuations of cycles.

After reflecting on the high expectations of the past, perhaps we should adopt a more pragmatic view of Web3, seeing it as an advanced version of crypto finance. What truly deserves attention are the individuals and projects that excel in their respective fields. The industry is shifting from "market dream rate" to "market share", pursuing products that genuinely meet user needs, have cash flow, and a business model. Although this transformation is full of challenges, it also contains immense development potential.