According to ChainCatcher, the Prysm team, responsible for the Ethereum consensus layer client, has published an analysis report on the Fusaka mainnet issue. During the incident, nearly all Prysm nodes experienced resource exhaustion while processing specific proofs, resulting in an inability to respond promptly to validator requests. The fault affected epochs 411439 to 411480, with 248 blocks lost across 42 epochs, leading to a missing rate of 18.5%. Network participation dropped to a low of 75%, and validators lost approximately 382 ETH in proof rewards. The root cause was identified as Prysm beacon nodes receiving proofs from potentially unsynchronized nodes, which referenced block roots from previous rounds. To verify these proofs, Prysm attempted to reconstruct compatible states, causing repeated processing of past round blocks and costly recalculations of round conversions. The team temporarily addressed the issue by advising users to use the --disable-last-epoch-target parameter. Future versions v7.1 and v7.1.0 will include long-term solutions.

The Prysm team released a mainnet incident recap report stating that during the Ethereum mainnet Fusaka session on December 4th, almost all Prysm beacon nodes ran out of resources while processing specific attestations, resulting in their inability to respond to validator requests in a timely manner and causing a large number of missing blocks and witnesses. The incident affected epochs 411439 to 411480, a total of 42 epochs, with 248 blocks missing out of 1344 slots, a missing rate of approximately 18.5%. Network participation dropped to 75% at one point, and validators lost approximately 382 ETH in witness rewards. The root cause was that Prysm received attestations from nodes that may have been out of sync with the mainnet. These attestations referenced the block root of the previous epoch. To verify their legitimacy, Prysm repeatedly replayed the old epoch state and performed high-cost epoch transitions, causing nodes to run out of resources under high concurrency. The defect originated from Prysm PR 15965, which had been deployed to the testnet a month prior but did not trigger the same scenario. The official temporary solution was to enable the `--disable-last-epoch-target` parameter in version v7.0.0; subsequent releases v7.0.1 and v7.1.0 included a long-term fix, using head state to verify attestations and avoid repeatedly replaying historical states. Prysm stated that the issue gradually subsided after 4:45 UTC on December 4th, with network participation recovering to over 95% by epoch 411480. The Prysm team pointed out that this incident highlights the importance of client diversity; if a single client accounts for more than one-third, it may lead to a temporary inability to terminate; exceeding two-thirds poses a risk of an invalid termination chain. They also reflected on the unclear communication regarding feature switches and the failure of the test environment to simulate a large number of asynchronous nodes, and will improve testing strategies and configuration management in the future.

Despite the crypto market's pullback from its October highs and the loss of approximately $1 trillion in market capitalization, venture capital firms still poured about $176 million into the crypto sector this week, covering 16 startups. DefiLlama data shows that total funding in the crypto space so far in 2025 has exceeded $25 billion, significantly higher than the same period last year and far exceeding market expectations at the beginning of the year. Major investors this week included Pantera Capital, Coinbase Ventures, and Digital Currency Group (DCG). Several industry insiders pointed out that the logic of capital allocation is changing; investors are gradually moving away from projects that rely solely on market sentiment and narrative-driven approaches, and are paying more attention to clear product positioning, genuine demand, and sustainable revenue models. Sebastián Serrano, CEO of the Argentine crypto exchange Ripo, stated that projects with clear product-market fit and stable cash flow are more likely to receive funding in the current environment. Specifically, cross-chain infrastructure project LI.FI completed a $29 million funding round this week. Its protocol integrates multiple cross-chain bridges and decentralized trading aggregators, and plans to use the funds to expand infrastructure for AI agents and stablecoin scenarios, as well as advance its intent and solver market launch in Q1 2026. Real Finance also completed a $29 million private funding round. This project builds an institutional-grade L1 blockchain based on the Cosmos architecture, focusing on compliant real-world asset tokenization, aiming to bring approximately $500 million worth of assets onto the chain in the short term. Another key project, TenX Protocols, completed a $22 million funding round and has been listed on the Toronto Stock Exchange Venture Exchange. Its business covers staking, validator nodes, and digital asset treasury services for multiple high-performance public chains. The current funding structure reflects the market's continued interest in "infrastructure-type" and "institution-friendly" projects. Even with overall market pressure, capital is still willing to pay for projects with long-term competitiveness and clear business paths. (DL News)

Hong Kong's Wu Jietzhuang pushes for Web3, stablecoin development, aligning with global trends. source: https://coincu.com/news/hong-kong-web3-stablecoin-growth/

One major exit was clear, but selling pressure hinted at something deeper beneath Pendle’s price. source: https://ambcrypto.com/can-pendle-hold-2-after-polychain-pulls-the-plug-at-4m-loss/

According to PANews, Hong Kong legislator Ng Kit Chuang has been successfully re-elected to the eighth Legislative Council. During the election process, he expressed his commitment to advancing Web3 development in Hong Kong and assisting the Hong Kong Special Administrative Region government in developing cutting-edge future industries, including embodied intelligence, quantum computing, and space technology. Ng also addressed recent questions regarding Hong Kong's Web3 development. He believes that the development of stablecoins in Hong Kong will not undergo significant changes and will continue to progress steadily. Regarding Real World Assets (RWA), Hong Kong has already promoted a regulatory sandbox. Ng encourages various industries to boldly integrate Web3 technology, which he believes will drive the development of numerous real-world applications. Furthermore, Ng stated that he will support the creation of a talent ecosystem in the industry, aiming to attract more developers and professionals to settle in Hong Kong.

According to Odaily, Greg Cipolaro, Global Head of Research at NYDIG, has highlighted the limited immediate benefits of tokenizing real-world assets (RWA) like stocks for the crypto market and blockchain networks. However, he suggests that as accessibility, interoperability, and composability improve, the long-term value of these assets is expected to gradually unfold. Cipolaro notes that in the short term, blockchain networks primarily benefit from transaction fees generated by tokenized assets and the network effects accumulated from hosting these assets. As tokenized assets become more integrated into the blockchain ecosystem, their use as collateral, lending assets, or trading targets in DeFi scenarios will significantly enhance the benefits for related networks. He emphasizes that tokenization is becoming a crucial trend. With regulatory environments becoming clearer and infrastructure improving, the use cases for RWAs like stocks on the blockchain are expected to expand. However, the current forms of tokenized assets vary greatly, and most still rely on compliance structures within the traditional financial system, such as KYC, whitelisted wallets, and transfer agents, which limit their composability. Cipolaro also points out that while the economic impact on traditional crypto assets is not yet significant, if future regulations become more open and tokenized assets achieve broader democratic access, their coverage and ability to capture value on-chain will be greatly enhanced, warranting continued attention from investors.

Greg Cipolaro, Global Head of Research at NYDIG, stated that the tokenization of real-world assets (RWAs) such as stocks will initially bring limited direct benefits to the crypto market and blockchain networks. However, as accessibility, interoperability, and composability improve, their long-term value is expected to gradually materialize. Cipolaro pointed out that in the short term, the main revenue for blockchain networks comes from transaction fees generated by tokenized assets and the network effects accumulated from the custody of these assets. As tokenized assets become more deeply integrated into the blockchain ecosystem, entering DeFi scenarios as collateral, lending assets, or trading instruments, the benefits to related networks will significantly increase. He believes that tokenization is becoming an important trend. As the regulatory environment gradually clarifies and infrastructure continues to improve, the on-chain use cases for RWAs such as stocks are expected to expand. However, currently, tokenized assets vary considerably in form, and most still rely on compliance structures within the traditional financial system, such as KYC, whitelisted wallets, and transfer agents, which limits their composability. Cipolaro also points out that while the current economic impact on traditional crypto assets is not significant, if future regulations become more open and tokenized assets achieve wider democratization, their reach and on-chain value capture capabilities will be significantly enhanced, making them worthy of continued attention from investors. (Cointelegraph)

Hex trust bridges XRP to Solana, expanding DeFi access. source: https://ambcrypto.com/solana-hosts-wxrp-can-3-9b-liquidity-unlock-xrps-defi-future/

According to PANews, TRM Labs has released a report forecasting an increase in the use of stablecoins in Venezuela. The ongoing regional and geopolitical tensions are contributing to macroeconomic instability and the continued depreciation of Venezuela's fiat currency, the bolivar. As a result, the demand for stablecoins as a means of value storage and transaction is expected to grow. Additionally, the unclear regulatory environment and persistent uncertainty surrounding the authority and enforcement capabilities of Venezuela's cryptocurrency regulatory body, SUNACRIP, coupled with declining trust in traditional banking infrastructure, may extend the reliance on blockchain technology and further boost its usage. Previously, Chainalysis published the '2025 Cryptocurrency Adoption Index Report,' which ranked Venezuela 18th globally in terms of cryptocurrency adoption. However, when adjusted for population size, Venezuela's ranking improves to 9th place.

Regulation, SEC, Law, A New Stage of Regulatory Game: Understanding the Impact of SEC Innovation Exemptions on the Global Crypto Industry (Jinse Finance) - In an era of regulatory race, where will capital and innovation flow?

Most teams simply use narrative hype without giving the underlying systems and actual developers the recognition they deserve.

Finally, building appchains makes sense.

On December 1, 2025, a major news broke: according to the Hong Kong Stock Exchange, HashKey, as one of the first batch of licensed virtual asset service providers (VATP) in Hong Kong, officially passed the listing hearing of the Hong Kong Stock Exchange.

Ethereum is shifting towards L1 scaling and privacy, and the US stock market's back-end engine, DTCC, with its $100 trillion holdings, is beginning to migrate on-chain, seemingly signaling the arrival of a promising new wave in crypto.

BTC, Technology, When Issuing Cryptocurrencies Becomes an Assembly Line, Someone Is Paying Salaries to Bitcoin Developers - Jinse Finance, People Paying Salaries to the Bitcoin "Operating System".

Some of the best-performing "altcoins" in this cycle aren't even tokens—they're crypto-asset-related stocks. Robinhood is undoubtedly the one with the most dramatic rise.

A financial tycoon sold his Nvidia shares too early, reflecting on valuation and personnel, missing out on the AI ​​wave, and realizing the true meaning of long-term holding.

Jinse Finance launches its daily cryptocurrency and blockchain news bulletin, "Jinse at 8 AM," issue 2907, providing you with the latest and fastest news on the digital currency and blockchain industry.

Remittances have always been reliable and fast across the Atlantic. This may be one reason why Americans are happy to accept "stablecoins" as an alternative to the banking system.