10.29 AI Daily Ethereum Fusaka upgrade leads a new era of Crypto Assets

1. Headlines

1. The Ethereum Fusaka hard fork has activated on the final testnet, expected to go live on the mainnet in December.

Ethereum has reached a critical moment as its highly anticipated Fusaka upgrade enters the final probing phase, expected to be officially deployed to the mainnet on December 3. Fusaka is the next major upgrade in Ethereum's roadmap, aimed at improving the network's scalability and security by introducing a new proof-of-work algorithm called “Gasino.”

Key changes in the Fusaka upgrade include switching Ethereum's proof-of-work algorithm from Ethash to Gasino. Gasino is designed to be more memory-intensive and ASIC-friendly, reducing the advantage of GPU miners. Additionally, Fusaka will increase Ethereum's block size limit from the current 300,000 gas to 30,000,000 gas, thereby enhancing overall throughput.

Analysts believe that the successful deployment of Fusaka will bring better scalability and higher security to Ethereum. With the increase in network throughput, Ethereum will be able to support more decentralized applications and higher transaction volumes. At the same time, the new proof-of-work algorithm will also make the network more resistant to the risks of ASIC centralization.

However, some critics are concerned that Fusaka may disrupt the existing Ethereum ecosystem. Due to changes in the Gasino algorithm, existing GPU miners may need to upgrade or replace their equipment. Additionally, some people are also skeptical about whether Fusaka can truly solve Ethereum's scalability issues.

Regardless, the launch of Fusaka will be an important milestone in the development history of Ethereum. The entire cryptocurrency community will closely monitor the progress of this upgrade and its impact on the Ethereum ecosystem.

2. NVIDIA collaborates with the U.S. Department of Energy to build national AI infrastructure

NVIDIA ( NVDA.O announced on Tuesday that it is collaborating with the U.S. Department of Energy's national laboratories and leading American companies to develop AI infrastructure that supports scientific research and economic growth. The company is accelerating seven new systems at Argonne National Laboratory and Los Alamos National Laboratory.

NVIDIA is collaborating with Oracle )ORCL.N( to help build the Department of Energy's largest AI supercomputer, Solstice, which will be equipped with 100,000 NVIDIA Blackwell GPUs. The second system, Equinox, will contain 10,000 Blackwell GPUs and is expected to be available in 2026.

NVIDIA also announced collaborations with companies such as General Motors ) GM.N (, Siemens Energy ) ENR.N (, and Lockheed Martin ) LMT.N (. The company's vision is to build infrastructure factories that can achieve a weekly output of 1 gigawatt of computing power and aims to significantly reduce the cost of AI computing power to about $20 billion per gigawatt over a five-year lifecycle.

This series of partnerships marks that Nvidia is increasing its investment in AI infrastructure development. Analysts believe that AI has become a key driving force for the future of technological development, and mastering AI infrastructure will give Nvidia a competitive edge. Through collaborations with governments and industry giants, Nvidia is expected to take a leading position in multiple areas such as AI chips, systems, and software.

However, Nvidia also faces fierce competition from companies like AMD and Intel in the AI field. In the future, who can seize the AI wave and master core technologies and infrastructure will determine the direction of the future technology landscape.

) 3. South Korean central bank warns of a $24 billion market collapse

The Bank of Korea has issued a stern warning regarding the increasing risks associated with the stablecoin pegged to the Korean won, cautioning that without the establishment of safeguards, private issuers could threaten currency stability.

The Bank of Korea ### BOK ( stated in a new report titled “Currency in the Digital Age: Harmony of Innovation and Trust” that the rapid expansion of stablecoin activities has brought about systemic vulnerabilities, including potential decoupling events and illicit capital flows.

The report indicates that by September 2025, the market value of stablecoins in South Korea will exceed $24 billion, accounting for about 4% of the country's money supply. Such a large scale, if problems arise, could impact the entire financial system.

The Governor of the Bank of Korea, Lee Ju-yeol, stated at a report release conference that the regulation of stablecoins is a global challenge. He reiterated his concerns, saying: “From the perspective of the authorities responsible for foreign exchange management, this issue is highly alarming. If a Korean won stablecoin is launched, there is a significant possibility of circumventing foreign exchange controls.”

In response to the proposal by Democratic Party member Ahn Doo-jye to support the introduction of a Korean won stablecoin, Governor Lee clearly expressed a differing stance, stating, “My view is completely different from yours.” He also pointed out, “I do not believe that launching a Korean won stablecoin will reduce the demand for USD stablecoins, after all, those who wish to convert their assets into USD will still choose to use USD stablecoins.”

Analysis indicates that the regulation of stablecoins is a global challenge. On one hand, stablecoins help improve payment efficiency and financial inclusivity; on the other hand, their de-pegging risks and money laundering risks cannot be ignored. Central banks and regulatory agencies in various countries need to seek a balance between innovation and prudence, establishing an effective regulatory framework.

) 4. Polymarket returns to the US market at the end of November, predicting a $15 billion valuation and how it will reshape the sports betting landscape.

According to Bloomberg, the prediction market platform Polymarket plans to return to the U.S. market by the end of November, focusing on the sports betting sector. This strategic comeback marks a significant turnaround for the company after being expelled overseas and paying a $1.4 million fine in 2022 due to illegal trading allegations.

By acquiring QCX, a company holding a CFTC license, Polymarket has successfully opened a compliance channel, and its return could reshape the landscape of prediction markets in the United States, leading to a significant drop in stock prices of traditional betting companies like DraftKings.

Analysis suggests that the return of Polymarket will bring unprecedented vitality to the U.S. prediction market. As a crypto-native prediction market platform, Polymarket can leverage blockchain technology to offer greater transparency and fairness. Compared to traditional sports betting, prediction markets cover a wider range, including not only sporting events but also politics, entertainment, technology, and various other fields.

In addition, the cryptocurrency settlement method adopted by Polymarket will attract more young user groups. Cryptocurrency payments are more efficient and convenient, which is beneficial for cross-border transactions and capital flows.

However, Polymarket also faces many challenges on its way back to the U.S. market. First are compliance issues, as it needs to adhere to regulations set by agencies like the CFTC; second is user education, as it needs to help more people understand and accept the operation model of prediction markets; third is competitive pressure, as traditional sports betting companies are also ramping up their digital transformation efforts.

It is reported that Polymarket's valuation has reached 15 billion USD since its return. This valuation reflects the optimism of the capital market towards the prospects of prediction markets. In the future, whether prediction markets can shake up the traditional sports betting landscape remains to be seen.

5. NVIDIA launches NVQLink interconnection system, achieving integration of AI supercomputing and quantum computing.

NVIDIA ### NVDA.O ( has not independently developed a quantum computer, but CEO Jensen Huang is betting that the company will play a key role in the future development of this technology. During the keynote speech at the GTC conference held in Washington, he officially launched the NVQLink interconnection system – a technology that connects quantum processors with the AI supercomputers required for their efficient operation.

NVQLink is a high-speed interconnect technology that enables seamless communication between quantum processors and classical computers. It leverages photons to transmit data between quantum and classical computers at speeds of billions of times per second.

Jensen Huang stated that quantum computers excel at solving certain complex optimization and simulation problems, but are less efficient in other tasks. Therefore, combining quantum computers with classical computers can leverage the complementary advantages of both.

The launch of NVQLink marks NVIDIA's official entry into the quantum computing field. Analysts believe that quantum computing is seen as the next generation of revolutionary technology, and mastering quantum computing will give NVIDIA a long-term competitive advantage. Through NVQLink, NVIDIA can integrate the capabilities of classical and quantum computing, providing customers with a more powerful computing platform.

However, quantum computing is still in its infancy and has a long way to go before it becomes practical. Nvidia faces competition from tech giants such as Google, IBM, and Microsoft in this field. The future breakthroughs in quantum computing could determine who will dominate the future computing landscape.

Overall, the release of NVQLink highlights NVIDIA's ambitions in the fields of AI and quantum computing. As a chip and system supplier, NVIDIA is positioning itself for the post-quantum computing era, aiming to secure a favorable position.

2. Economic Dynamics

) 1. The Federal Reserve has lowered interest rates by 25 basis points as expected, reiterating that it will “remain patient”.

The current economic environment is maintaining moderate growth overall, but inflationary pressures have increased. According to the latest data, the annualized quarter-on-quarter GDP growth in the United States for the third quarter is 2.6%, higher than the expected 2.4%. At the same time, the core PCE price index rose 5.1% year-on-year in September, reaching a 40-year high. The labor market remains strong, with the unemployment rate holding steady at a low of 3.5% in September.

The Federal Reserve lowered the federal funds rate by 25 basis points as expected at the end of October, a move aimed at addressing risks brought about by the global economic slowdown and trade frictions. Federal Reserve Chairman Powell reiterated at a press conference that the Fed will “patiently continue” to assess economic data, suggesting a pause in interest rate hikes in the near term.

The market reacted mildly to the Federal Reserve's decision. Investors believe that the interest rate cut meets expectations, but Powell's hawkish remarks were disappointing. U.S. stocks fell slightly, with the S&P 500 index down 0.27%. The dollar index edged higher.

Goldman Sachs Chief Economist Jan Hatzius stated that the Federal Reserve has temporarily “hit the pause button,” but if the economy continues to slow down, further rate cuts may occur in 2020. HSBC believes that with the escalation of trade war risks, the Federal Reserve may cut rates three times next year.

2. The China-U.S. trade negotiations have made substantial progress, with both sides reaching partial agreements.

The economic and trade teams of China and the United States are holding a new round of high-level economic and trade consultations in Washington, achieving substantial progress. The two sides have reached a consensus on some economic and trade issues and agreed to phase out the additional tariffs.

Currently, the economic growth rates of both China and the United States have slowed down. China's GDP grew by 6% year-on-year in the third quarter, marking a new low in 27 years. The annualized quarter-on-quarter GDP growth in the United States for the third quarter was 2.6%, down from 3.1% in the previous quarter. Trade friction is an important factor contributing to the economic slowdown in both countries.

The partial agreement reached during this consultation is expected to ease the tensions in Sino-U.S. trade and lay the foundation for a comprehensive agreement. Both parties agreed that the U.S. side will not impose new tariffs, and the Chinese side will increase imports of agricultural products.

The market reacted positively to the negotiation results. All three major U.S. stock indexes rose, with the Dow Jones up over 300 points. The exchange rate of the RMB against the USD broke through the 6.7 mark. Chinese concept stocks surged collectively, with Alibaba rising 4.92%.

Goldman Sachs analysts pointed out that while some agreements are beneficial in easing tensions, there are still many discrepancies that need to be resolved. UBS believes that the easing of trade tensions will boost market confidence and is favorable for global economic stabilization.

3. The risk of a no-deal Brexit in the UK has intensified, causing the pound to plummet to a two-week low.

The risk of a no-deal Brexit in the UK has intensified again, with the GBP/USD exchange rate plummeting to a two-week low. UK Prime Minister Johnson stated that if the EU refuses to renegotiate the Brexit deal, the UK will have a “no-deal Brexit” on October 31.

Currently, the UK economy is slowing down. The GDP growth rate in the third quarter was only 0.3%, down from 0.5% in the previous quarter. The inflation rate has also declined, with a year-on-year rate of 1.7% in September, down from 1.8% in August. The Bank of England anticipates that a no-deal Brexit will push the UK economy into recession.

The differences between the UK government and the EU are mainly focused on the Northern Ireland border issue. Johnson insists on revising the “backstop arrangement” in the existing agreement, but the EU refuses to renegotiate.

The GBP to USD exchange rate fell to 1.2196, a two-week low, under the influence of escalating Brexit risks. The UK stock market also faced pressure, with the FTSE 100 index down 0.6%.

UBS analysts stated that the risk of a no-deal Brexit is rising, putting further depreciation pressure on the pound. Goldman Sachs believes that the Johnson government may ultimately seek to delay the Brexit deadline again.

3. Regulation & Policy

1. Australian financial regulators expand the scope of cryptocurrency regulation

The Australian Securities and Investments Commission (ASIC) recently released a significant update to its guidance on digital assets, expanding the applicability of current financial services laws to cryptocurrency activities. As Australia's primary financial regulator, ASIC is responsible for overseeing the securities and financial services industry to ensure a fair and orderly market. This update aims to lay the groundwork for the upcoming “Digital Asset Platforms and Payment Service Providers Bill,” introducing a formal licensing system for cryptocurrency exchanges, custody platforms, and stablecoin issuers.

The latest guidelines clearly state that in order to operate legally, relevant enterprises must operate with a license and set specific net asset requirements, while also emphasizing that global platforms cannot evade local regulations. Specifically, ASIC has expanded the term from “crypto assets” to “digital assets” to encompass virtual assets, tokenized products, and coin-based assets, aiming to comprehensively cover various digital asset products and services. Furthermore, ASIC reiterated that under current laws, many digital assets, including yield tokens, staking programs, and asset-referenced stablecoins, may require an Australian financial services license.

After the release of this guide, industry insiders generally welcomed it, believing that it is an important step towards regulatory clarity. However, some are concerned about the speed of licensing approvals and the logistical hurdles that still need to be overcome. Exchange CEO Michael Khuu stated: “We welcome ASIC's guidance, which brings greater certainty to the industry. However, we still need to wait for the specific details of the new legislation to assess its impact on the industry.”

Overall, this policy adjustment reflects the Australian regulatory authorities' aim to strengthen oversight in the cryptocurrency sector, creating a more orderly and transparent environment for investors. However, the specific implementation details remain to be observed, and industry participants need to closely monitor the future developments in regulations.