Hi friend 👋🏼

This week, we’ve got some interesting developments! From a Picasso painting found in an Italian villa’s basement to Eurozone inflation hitting a new low, there’s plenty to cover. We’ll also dive into the challenges facing Web3 and how global liquidity is shaping asset prices. 

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The Weekly Fun Fact 🤔
An oil painting discovered in an Italian villa's basement could be a million-dollar Picasso! Discovered over 60 years ago by junk dealer Luigi Lo Rosso, the piece was stored in a Milan vault for decades.

Recent authentication suggests it might fetch €6 million at auction if genuine. The portrait, possibly of Picasso's muse Dora Maar, could be one of the most exciting art finds in years. It just shows that sometimes, million-dollar art might be looking from the most unexpected places!

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🔴 Web3 struggles to keep users engaged after token hype fades 🌐

Web3, the vision of a decentralized internet powered by blockchain and cryptocurrencies, is facing a user retention problem. Many Web3 projects kick off by handing out free tokens like candy, only to see activity drop off as users move on. Ethereum layer-2 project Blast, for instance, saw its weekly active users fall from 570,000 to 78,000 post-airdrop. 

Experts like Urvit Goel argue that tokenomics alone can’t sustain user engagement — real value must come from developing meaningful products that foster long-term adoption.

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🟡 Global liquidity is rising, and asset prices are set to follow 📈

Central banks are slashing rates at a pace we haven’t seen since 2020, flooding the market with cheap money. This could kickstart a borrowing and investing spree, potentially pushing up prices for stocks, real estate, and other assets. 

While this may benefit investors, the increasing income-housing gap and rising costs of living may be concerning for savers. Central banks are using the same playbook: print money, lower interest rates, and stimulate the economy — but the long-term consequences remain uncertain.

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🟢 Eurozone Inflation Falls Below 2%, Signaling More ECB Rate Cuts 📉

Good news for the Eurozone: inflation has cooled down to 1.8% in September, hitting its lowest point since 2021. What’s behind this drop? Mainly falling energy prices. This shift strengthens the case for another European Central Bank (ECB) rate cut, with markets now betting on multiple cuts by year-end. 

As inflation eases faster than expected, policymakers are closely watching core inflation trends which saw a slight dip, and debating the pace of further rate reductions.

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🎬 We’ve covered quite a bit today—from hidden Picasso treasures to market shifts and Web3 challenges. Join us next week for more updates and insights!