Massive Shake-Up in Crypto: Ethereum’s New Fork, Circle’s Arc, and Fed Tensions Collide

 

Ethereum’s Fusaka Fork and Circle’s Arc Testnet Signal a New Era in Blockchain Innovation

The cryptocurrency market extended its losing streak on Tuesday, slipping another 0.93% over the past 24 hours as investors grappled with renewed concerns over the Federal Reserve’s tightening monetary policy and reduced liquidity conditions. This minor downturn caps off a volatile 30-day stretch that has seen prices dip by roughly 1.63%, underscoring the broader fragility of global risk markets.

Despite optimism surrounding several new crypto-related ETFs, the enthusiasm has been overshadowed by mounting macroeconomic pressures. Analysts note that the tug-of-war between innovation and liquidity constraints continues to shape the tone of the market heading into November.

Fed Policy Worries Dampening Crypto Sentiment

Investor sentiment across digital assets weakened this week as fears surrounding the Federal Reserve’s ongoing quantitative tightening gained traction. With liquidity in the repo market thinning, traders have adopted a risk-off approach, shifting away from speculative assets and favoring short-term safe havens.

Bitcoin (BTC) managed to hold near the $113,000 level, showing modest stability after sharp intraday swings earlier this month. Ethereum (ETH), meanwhile, maintained support around $4,000 — a psychological threshold that has repeatedly served as a critical pivot for traders.

The introduction of several exchange-traded funds (ETFs) tied to assets like Solana (SOL), Hedera (HBAR), and Litecoin (LTC) initially sparked optimism, but this enthusiasm was short-lived. The market quickly faced profit-taking pressure, resulting in uneven demand and further price weakness across major altcoins.

Ethereum’s Fusaka Fork Nears Mainnet Launch

Among the biggest developments this week, Ethereum’s much-anticipated Fusaka Fork is now entering its final testnet phase, setting the stage for a full mainnet rollout scheduled for December 3.

The “Hoodi” testnet launch marks a crucial milestone in Ethereum’s evolution, introducing a new wave of scalability and security improvements. According to developers, Fusaka integrates multiple Ethereum Improvement Proposals (EIPs) designed to boost performance, efficiency, and network capacity — further reinforcing Ethereum’s leadership in smart contract innovation.

At the heart of this update lies EIP-7594, known as Peer Data Availability Sampling (PeerDAS). This feature allows validators to process smaller chunks of Layer-2 data rather than full blocks, drastically improving data throughput and reducing bandwidth strain.

Additional proposals like EIP-7825 and EIP-7935 aim to raise Ethereum’s gas limits and streamline computation efficiency. Together, these updates pave the way for parallel execution, enabling multiple smart contracts to run simultaneously — a significant step toward solving Ethereum’s long-standing scalability bottleneck.

Furthermore, Fusaka includes enhanced support for zero-knowledge (ZK) rollups, advancing Ethereum’s capacity to handle high transaction volumes without compromising decentralization or security. This focus on scalability aligns with the vision outlined by Ethereum co-founder Vitalik Buterin, who coined the term “blockchain trilemma” to describe the trade-offs between security, scalability, and decentralization.

If successful, the Fusaka Fork could position Ethereum to better compete with emerging high-speed networks like Solana and Avalanche while maintaining its edge as the most trusted platform for decentralized applications (dApps).

Polymarket Prepares for U.S. Trading Return

Another major story this week involves Polymarket, the blockchain-based prediction platform that is reportedly gearing up for a long-awaited comeback in the United States.

According to a report from Bloomberg, the company plans to relaunch domestic trading within weeks, focusing initially on sports prediction markets. The move follows a no-action letter issued by the U.S. Commodity Futures Trading Commission (CFTC) to a derivatives exchange recently acquired by Polymarket, effectively paving the way for its legal re-entry into the American market.

CEO Shayne Coplan confirmed that the platform’s relaunch is imminent, revealing that thousands of U.S. users have already joined a waitlist ahead of reopening. Industry insiders suggest that Polymarket could be valued at up to $10 billion following its next funding round, which reportedly aims to raise as much as $200 million.

If Polymarket successfully resumes operations, it could mark a breakthrough moment for blockchain-based financial products in the U.S. — demonstrating how regulatory clarity can reignite innovation while preserving consumer protection.

Circle Launches Arc Testnet With Massive Institutional Support

In a move that could reshape the intersection of traditional finance and blockchain, Circle — the company behind the USDC stablecoin — has officially launched the public testnet for its new Layer-1 blockchain, Arc.

Arc aims to serve as a bridge between the world’s financial institutions and on-chain finance, combining the stability and compliance of traditional systems with the efficiency and transparency of decentralized networks.

What sets this initiative apart is its institutional backing. Over 100 global financial organizations, including BlackRock, Goldman Sachs, Visa, Mastercard, and State Street, have reportedly joined the project’s early test phase.

Arc offers predictable transaction fees, near-instant finality, and optional privacy layers — all powered by Circle’s USDC stablecoin. The network’s architecture has been designed for regulatory compatibility, enabling banks and payment providers to experiment with blockchain technology without compromising oversight requirements.

Circle CEO Jeremy Allaire described the Arc rollout as “a defining moment for institutional blockchain adoption,” emphasizing the company’s vision to “bring billions of users and trillions in assets into the blockchain-based financial system.”

This announcement comes amid an intensifying global race to modernize payment infrastructure. With central banks and private institutions exploring digital currencies, Circle’s Arc initiative could establish a new benchmark for compliance-focused blockchain ecosystems.

A Turning Point for the Crypto Market

While short-term volatility continues to dominate headlines, many analysts see these developments — from Ethereum’s Fusaka Fork to Circle’s institutional blockchain — as critical stepping stones toward mainstream adoption.

“The market’s maturing,” said blockchain strategist Evelyn Chen of Nexus Analytics. “What we’re seeing now isn’t just about token prices. It’s about infrastructure — the kind that can power the next generation of finance.”

Ethereum’s upcoming upgrade could dramatically reduce network congestion and costs, while Circle’s Arc network introduces much-needed transparency to institutional operations. Together, these advances signal that blockchain is shifting from speculative hype to real-world utility.

Still, uncertainty surrounding global monetary policy remains a key headwind. If the Federal Reserve maintains tight liquidity, crypto prices may remain range-bound in the short term. But in the long run, technological progress like this could lay the foundation for the next major bull cycle.

Source

Writer @Ellena

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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