10.30 AI Daily Report Crypto Assets market is intertwined with long and short positions, and regulatory attitude is crucial

一. Headlines

1. Bitcoin Computing Power hits a new high, Miner enthusiasm surges

The Computing Power of the BTC network reached a new historical high on September 2, reaching 742.76 EH/s. This data reflects the continuous strengthening of Miners' confidence in the BTC network.

Analysts say that the continuous rise in BTC computing power indicates that miners are optimistic about the long-term prospects of BTC. Despite the increased fluctuation in BTC prices recently, miners are still expanding their computing power investment. This continuous rise in computing power means that the security and decentralization of the BTC network are further enhanced.

On the other hand, the rise in Computing Power has also intensified the competition among Miners. With more Computing Power joining, the difficulty for individual Miners to obtain Block Rewards increases. This may force some small Miners to exit, further concentrating the industry. However, overall, the new high in Computing Power reflects Miners' strong confidence in the long-term development prospects of Bitcoin.

2. Ripple launches EVMSidechain, exploring new programmability of XRPL

Ripple announced plans to launch XRPL EVMSidechain in 2025, bringing new programmability to the XRPL development ecosystem, including Smart Contract. This move aims to further expand the application scenarios of XRPL.

The XRPL EVMSidechain will allow developers to build and deploy Decentralization applications that are compatible with Ethereum on XRPL. This will not only help attract more developers to join the XRPL ecosystem but also promote interoperability between the XRPL and Ethereum ecosystems.

In addition to EVMSidechain, Ripple is also exploring the implementation of native smart contract functionality on XRPL Mainnet. This will further enhance the flexibility and adaptability of XRPL, enabling it to support a wider range of decentralized applications.

Analysts believe that Ripple's strategic move reflects its commitment to promoting the development of the XRPL ecosystem. By embracing the Ethereum Virtual Machine, XRPL will be able to leverage the huge developer community of Ethereum to accelerate ecosystem construction.

3. Up上线UXLINK, Korean exchange布局We

South Korean Cryptocurrency exchange Up announced the launch of UXLINK, supporting KRW, BTC, and USDT trading pairs. This is an important move for Up to further expand its We ecosystem.

UXLINK is a Cross-Chain Interaction network built on Substrate, aiming to connect different blockchain ecosystems. It provides a unified asset exchange layer, allowing seamless circulation of different on-chain assets.

Up上线UXLINK, which means that Korean investors will be able to participate in the UXLINK ecosystem more conveniently. This will not only help UXLINK gain wider recognition, but also further integrate the Korean cryptocurrency market with the We ecosystem.

Analysts point out that as a leading exchange in South Korea, Up's move reflects its optimistic expectations for the development prospects of We. By embracing Cross-Chain Interaction interoperability, Up is expected to seize the opportunity of the We era and provide users with richer products and services.

4. TON ecosystem accelerates expansion, launching incubator and ecological entrance.

The TON ecosystem continues to heat up, TON Accelerator announces the launch of TON:Acc Incubator and TON:Acc Portal, injecting new vitality into the TON ecosystem.

TON: The Acc Incubator aims to provide services to high-quality startups on TON. TON Ventures will select 5 projects and provide investments of up to $2.5 million. These projects will receive the necessary support, funding, and expertise during a 3-month incubation period.

At the same time, TON:Acc Portal will serve as a new ecosystem incubation platform, providing support for the TON ecosystem. This platform will gather various resources of the TON ecosystem and provide one-stop services for developers and entrepreneurs.

Analysts believe that the TON ecosystem is accelerating its expansion and attracting more and more innovative forces. The launch of TON:Acc Incubator and Portal will further stimulate the innovation vitality of the TON ecosystem and inject new development momentum into it.

5. Pump.fun becomes the most profitable application in the Solana ecosystem

According to statistics, Pump.fun has become the most profitable application in the Solana ecosystem, with its revenue rising faster than traditional Decentralized Finance projects such as Curve and Sushi.

Pump.fun is a gambling game based on Solana, where users can participate by betting Token. With innovative game mechanics, Pump.fun has attracted a large number of users, and the income has risen rapidly.

Analysts point out that the success of Pump.fun demonstrates that the Solana ecosystem is nurturing more interesting application scenarios. Compared to traditional Decentralized Finance applications, game-like applications such as Pump.fun are more likely to attract follow from ordinary users.

However, some people also believe that the popularity of Pump.fun may just be a flash in the pan. Without lasting innovation, this gambling-based application will not be able to truly promote the long-term development of the Solana ecosystem. The Solana ecosystem needs more applications that truly solve practical problems.

Overall, Pump.fun has undoubtedly brought vitality to the Solana ecosystem, but to achieve sustainable development, Solana still needs continuous innovation in infrastructure and application layers.

2. Industry Data

1. BTC

The recent transaction price is $71021.30, with a daily increase of +3.80%.

2. ETH

Recently traded at $2613.25, with an intraday gain of +4.00%.

3. DOGE

The recent transaction price is 0.1648 US dollars, with an intraday increase of +14.80%.

4. SUI

The recent transaction price is 1.8409 US dollars, with an intraday increase of +5.80%.

5. GT

Recently, the transaction price was $8.8840, with an intraday increase of +2.80%.

III. Industry News

1. BTC breaks through the $72,000 mark, approaching a historical high

The price of BTC surged to over $73,000 in the early European trading on October 30th, and then slightly fell to $72,196. This pump was supported by the approval of the new BTC ETF in the United States, the loose monetary policy of central banks in the West, fiscal stimulus from China, and the increasing presidential election prospects of Donald Trump. This pump is due to the fact that after reaching its peak in March, BTC has been challenging the patience of many investors after several months of sideways consolidation. However, each attempt to reach a new high point has encountered rapid retracements supported by purchases.

Analysts believe that the strong performance of BTC reflects investors' continuous rise in demand for Crypto Assets. Despite the recent increase in price Fluctuation, BTC is still seen as a valuable alternative investment vehicles and store of value. Some institutional investors and high-net-worth individuals have begun to include BTC in their portfolios to diversify risks and hedge against inflation. In addition, the potential return of Trump to the White House may also bring Favourable Information for Crypto Assets, as he has shown support for the field during his tenure.

However, the surge of BTC has also raised some warnings. Some analysts are concerned that excessive speculation may lead to a bubble and ultimately trigger a significant price drop. Regulatory agencies may also strengthen supervision of the cryptocurrency market to protect investor interests. Therefore, investors still need to be cautious when investing in BTC, closely follow market trends, and assess potential risks.

2. Ethereum's upward momentum is weak, and multiple factors are constraining its development

Despite the recent strong performance of BTC and other cryptocurrencies, the rise of Ethereum has been relatively lagging. As the second largest cryptocurrency, Ethereum has been struggling to break through the resistance level in the past few months, but its price fluctuation range is relatively small. Analysts believe that Ethereum is facing multiple challenges, which have constrained its development pace.

First of all, although the last major upgrade of ETH 2.0 "Merger" was somewhat successful, it also brought some unexpected impacts. Some investors are taking a wait-and-see approach to the upgraded ETH, waiting for the long-term stability of the network to be verified. In addition, the lack of dominant applications in the ETH ecosystem has raised concerns among investors about its long-term prospects.

Secondly, the ETH Spot ETF has been repeatedly rejected by the United States Securities and Exchange Commission, which has also to some extent affected investor sentiment. Unlike the approval of the BTC Spot ETF, the rejection of the ETH Spot ETF is seen as a lack of trust in the asset by regulatory authorities.

Thirdly, Ethereum has also failed to keep up with emerging trends in the industry, such as artificial intelligence and WeChat, which are popular fields. In contrast, other public chains such as Aptos, SUI, etc. have shown active performance in these areas and have attracted a large number of followers.

Finally, Vitalik Buterin, the founder of Ethereum, selling millions of dollars worth of memes, also to some extent affected investors' confidence in Ethereum.

Although Ethereum currently faces many challenges, analysts believe that its position as a leading Smart Contract platform and center for Decentralized Finance will continue. As long as the Ethereum team can timely solve existing problems and keep up with industry trends, it still has the potential to regain momentum in the future.

3. The resurgence of Dogecoin has driven investors' emotions apart.

While BTC and mainstream Cryptocurrency are gaining strength, some meme coins have also experienced crazy pumps. Dogecoin (DOGE), Shiba Inu (SHIB) and other well-known meme coins have pumped 10% and 15% respectively in the past 24 hours. This phenomenon has raised concerns in the market about the bubble of meme coins and also reflects the divergence of investor sentiment.

Supporters believe that the rise of meme coins is due to the possibility of Trump being re-elected as President of the United States. Trump has voiced support for Shiba Inu multiple times on social media, and if he is indeed re-elected, it may bring Favourable Information policies for meme coins. In addition, some investors also see meme coins as an interesting speculative tool and are willing to take on higher risks in pursuit of potential high returns.

However, critics warn that the value of meme coins is entirely based on speculation and lacks practical use and Intrinsic Value support. Once speculative sentiment weakens, meme coins are highly likely to experience a big dump. This round of rise is likely to be short-lived, and investors should remain rational and avoid blindly following the trend.

From the trading data, although the price of Dogecoin has risen sharply, the Trading Volume has not risen significantly. This may indicate that this round of market is mainly driven by a small amount of funds, and there is a lack of broad market participation. Therefore, the future trend of Dogecoin still remains highly uncertain, and investors need to remain highly vigilant.

Four. Project News

1. Chainlink introduces major on-chain platform upgrade, introducing Chainlink runtime environments

Chainlink announced the launch of a significant on-chain platform upgrade, introducing the Chainlink Runtime Environment (CRE). This is a modular, composable new architecture that can scale to thousands of blockchains and provide custom Depth for Capital Market users.

This upgrade refines the core functions of the Chainlink network into modular capabilities, such as reading on-chain data, calling APIs, etc. Developers can freely combine these capabilities to create custom workflows. Each capability is secured by a single decentralized oracle machine network, and can be reused in multiple workflows.

This upgrade aims to improve the scalability and flexibility of Chainlink to meet the needs of different industries and users. Through modular design, developers can more easily build and deploy customized on-chain applications. This move is expected to drive the widespread adoption of Chainlink in various industries and further promote the interconnection between blockchain and the real world.

Industry insiders generally believe that the launch of the Chainlink runtime environment marks a step forward for Chainlink towards a more open and composable ecosystem. This will not only attract more developers to join, but also drive the innovation and development of the entire blockchain industry.

2. Polymarket TVL exceeds $340 million, up 159%

According to DefiLlama data, Polymarket's TVL (Total Value Locked) has surpassed $340 million, reaching $340.4 million, an increase of up to 159% in the past month.

Polymarket is a Decentralization prediction market platform that allows users to predict and bet on the outcomes of various events. Users can create new markets and place bets on the outcomes of any event.

Polymarket's TVL surge is mainly due to its unique product design and user experience. The platform provides a new way of gambling and prediction, attracting a large number of users to participate. At the same time, Polymarket has also launched a series of innovative features such as social prediction, further enhancing user stickiness.

The rise of Polymarket reflects the rise in demand for prediction markets in the cryptocurrency industry. With more and more funds flowing into this field, Polymarket is expected to face more competitors. However, as a pioneer, Polymarket has already taken the lead in terms of user base and ecosystem construction.

Analysts believe that the success of Polymarket is inseparable from its Decentralization feature. Compared to traditional centralized prediction markets, Polymarket offers higher transparency and fairness, attracting a large number of Cryptocurrency enthusiasts. In the future, Polymarket needs to continue innovating to consolidate its leading position in the prediction market field.

3. Florida CFO Proposes Using BTC as State Pension Fund Investment

Jimmy Patronis, the Chief Financial Officer of Florida, wrote to Chris Spencer, the Executive Director of the Florida Government Management Committee, requesting that the committee submit a report exploring the possibility of including BTC and other digital assets as viable investments for the state's pension fund.

Patronis cited Florida's strong economic performance and history of innovation as reasons to explore the potential for Cryptocurrency investment. He argues that BTC, often referred to as "digital gold", can diversify the state's portfolio and provide hedging against the volatility of other asset classes. He recommends that the "Digital Money Investment Pilot Program" is well-suited for Florida's growth fund, which allows for more investments in innovation and emerging sectors.

This proposal is consistent with Florida Governor Ron DeSantis' recent opposition to the central bank's Digital Money initiative, with Ron stating that Cryptocurrency is the "opposite" of central currency.

If Florida really includes BTC in its pension fund investment scope, it will be the highest level of acceptance of cryptocurrency by a state government in the United States. This will not only bring potential investment returns to Florida, but also set a precedent for other state governments to follow.

However, some analysts have expressed concerns about this. They believe that the high volatility of BTC may pose excessive risks to pension funds. At the same time, the regulatory prospects for cryptocurrency remain uncertain, which may affect state government investment decisions.

Overall, the proposal by the CFO of Florida has once again brought cryptocurrency to the forefront. Regardless of the final outcome, this will trigger a wide-ranging discussion on the application of cryptocurrency in institutional investment.

五. Economic Trends

1. US GDP in the third quarter rose by 3%, and inflation is close to the Federal Reserve's target of 2%.

Economic background: The US economy maintained a strong rise momentum in the third quarter of 2024, with the Gross Domestic Product (GDP) rising by 3% on an annualized basis, unchanged from the previous quarter. This marks the 10th consecutive quarter of expansion for the US economy. At the same time, the core personal consumption expenditures price index (PCE) rose by 2.1% year-on-year, approaching the Federal Reserve's 2% inflation target. The unemployment rate remained at a low level of 3.5%, and the employment market remained robust.

Important event: The Fed raised the federal funds Intrerest Rate target range by 75 basis points again in October, to 3.75%-4%. Nevertheless, the latest data shows some easing of inflationary pressures, creating conditions for the Fed to slow down the pace of rate hikes in the coming months. At the same time, the US government has introduced a series of economic stimulus measures to support businesses and households, helping the economy weather the current period of high inflation.

Market reaction: Investors are cautiously optimistic about the prospects for the recovery of the US economy. The stock market saw a significant rebound in the third quarter, with the S&P 500 index pumping 8.5%. However, concerns about economic slowdown in the bond market have not been eliminated, with the yield on 10-year government bonds maintaining a high level of around 4%. The US dollar index softened slightly in the third quarter, reflecting the market's expectation of a slower pace of interest rate hikes by the Federal Reserve.

Expert opinion: Kenneth Rogoff, professor of economics at Harvard University, said that the US economy is gradually emerging from the shadow of the epidemic, but still faces the dual pressures of high inflation and slowing global demand. He believes that the Federal Reserve should continue to raise interest rates decisively until the inflation rate clearly falls. At the same time, the government should increase fiscal spending to provide more bail-out for businesses and households.

2. European Central Bank raises interest rates by 75 basis points, Eurozone inflation rate reaches a new high

Economic Background: The European Central Bank announced at its October monetary policy meeting that it would raise the Benchmark Interest Rate by 75 basis points to 1.5%, the largest single increase since the establishment of the Eurozone in 1999. Prior to this, the annual inflation rate in the Eurozone in September reached 10%, far exceeding the European Central Bank's target of 2%. The unemployment rate remained relatively low at 6.6%.

Important events: The ongoing conflict between Russia and Ukraine, soaring energy prices, and the weak euro are the main factors driving up inflation in the eurozone. In order to curb further inflation expectations, the European Central Bank has to take decisive action. Meanwhile, EU countries are making efforts to reduce their dependence on energy from Russia and seek alternative energy sources.

Market Reaction: European stock markets saw a sharp decline in October, with the STOXX Europe 600 index falling 6.4%, reflecting growing concerns about economic recession. The EUR to USD exchange rate further weakened to around 0.98 in October. Bond yields, on the other hand, pumped up after a rate hike by the European Central Bank.

Expert opinion: Klaus Vard, director of the German Institute for Economic Research, said that the decision of the European Central Bank to raise interest rates, although late, is not too late. He believes that the inflation rate will peak and fall back in the first half of next year, when the European Central Bank may slow down its pace of raising interest rates. However, he warned that if the Russia-Ukraine conflict continues to escalate, energy prices may further soar, dealing a heavy blow to the eurozone economy.

Six. Regulation & Policy

1. The new financial inclusion strategy of the US Department of the Treasury does not focus on following Cryptocurrency

Background: The U.S. Department of the Treasury recently released a new financial inclusion strategy aimed at helping more people access the financial system. However, this 35-page report did not mention Cryptocurrency at all, indicating that the U.S. government may not consider Cryptocurrency as a key option in promoting financial inclusion.

Policy Content: The report points out that the Ministry of Finance "cultivates financial inclusiveness through development and promotion of research" and therefore released a report on "risks related to digital assets" in 2022. This simple mention may be just to emphasize the work done by the Ministry of Finance in marking the risks of the encryption industry.

Market Reaction: Despite Vice President Kamala Harris' campaign promise to encourage cryptocurrency as part of her economic agenda, her current administration appears to have a shift in attitude towards digital assets. This policy may exacerbate market uncertainty regarding the regulatory outlook in the United States.

Expert Opinion: Paxos CEO Charles Cascarilla calls on the next government to establish a more clear and friendly regulatory environment for digital assets. He warns that the future of financial industry regulation may be at risk if it fails to persist.

2. Hong Kong Legislative Council Member: Stablecoin Regulatory Framework Expected to be Submitted to the Legislative Council Next Month

Background: The Hong Kong SAR Government has been actively promoting the regulation of virtual assets. Stablecoin, as an important link between cryptocurrency and TradFi system, is highly followed in its regulatory framework.

Policy Content: Hong Kong Legislative Councilor, Dennis Kwok, revealed that the regulatory framework for stablecoins is expected to be submitted to the Legislative Council next month, and the legislative process may require an additional two to three months, with the first round of debates expected to begin early next year. In addition, OTC Trading services will also be included in the regulatory framework.

Market Reaction: The advancement of stablecoin regulatory framework will create a more standardized and orderly development environment for Hong Kong's virtual asset industry, which is conducive to attracting high-quality projects and funds. However, overly strict regulations may also stifle innovation.

Expert Opinion: Hong Kong financial legal experts believe that the regulatory framework for Stable Coins should balance innovation and risk control, creating a favorable environment for the healthy development of the industry. It also needs to align with international regulations to ensure Hong Kong's competitiveness in the global virtual asset market.

3. The Monetary Authority of Singapore has established the Global Financial and Technological Network (GFTN), which will pilot digital asset and tokenization in the first phase.

Background: The Monetary Authority of Singapore has been actively promoting financial technology innovation. The establishment of the GFTN network aims to strengthen collaboration with the global financial technology community and drive the development of the Singaporean financial technology ecosystem.

Policy Content: The first phase of GFTN's measures includes developing a regulatory sandbox framework, establishing cross-border payment links, piloting digital asset and tokenization, and promoting the adoption of artificial intelligence. GFTN will collaborate with the HKMA to advance industry and policy dialogues in the areas of payments, asset tokenization, and AI/quantum.

Market Reaction: Singapore has always been regarded as an important hub for global fintech innovation. The establishment of the GFTN network will further enhance Singapore's influence in cutting-edge areas such as digital asset and tokenization, attracting more innovative projects and funding to settle here.

Expert opinion: A professor of financial technology at the National University of Singapore stated that the GFTN network will provide a broader international stage for Singapore's financial technology companies. The pilot of digital asset and tokenization will help explore innovative regulatory models and lay the foundation for future development of more clear regulatory rules.