February 2025 has been a month of significant progress and sobering setbacks across the Web3 and cryptocurrency landscape. While key technological upgrades and ecosystem expansions highlight the industry’s innovative momentum, a major security breach serves as a critical reminder of the persistent risks in the digital asset space. This article provides a detailed overview of the most impactful events and trends from the past month, offering insights into what these changes mean for users, developers, and the broader market.
Major Technical Upgrades and Launches
Ethereum Gas Limit Increase
On February 5th, the Ethereum network implemented its first Gas limit increase in three years, raising it from 30 million to nearly 32 million units. This adjustment, approved by a majority of validators without requiring a hard fork, is designed to enhance the network’s transaction processing capabilities. By allowing more transactions or complex operations per block, the upgrade aims to reduce congestion during peak periods, lower transaction fees for users, and improve the overall experience for decentralized applications (dApps). This change is also viewed as a strategic move to retain users and developers who might otherwise migrate to higher-throughput blockchains like Solana.
Ondo Finance Launches Ondo Chain
Ondo Finance unveiled Ondo Chain on February 6th, a new Layer 1 blockchain specifically designed for institutional-grade financial markets. Built to support the growing tokenized securities (RWA) sector, Ondo Chain combines the openness of a public blockchain with the compliance features of a permissioned network. Key characteristics include a security model based on RWA staking, a regulated validator network, seamless connectivity with traditional finance infrastructure, and native cross-chain communication mechanisms. The chain also incorporates a proof-of-reserve mechanism to ensure full collateralization and transparency for all issued assets.
Etherscan Introduces On-Chain Credit Scoring
Etherscan, the leading Ethereum block explorer, launched a new on-chain address credit scoring feature on February 10th. Powered by Blockchain Bureau, this tool analyzes historical on-chain activity to assign risk scores to wallet addresses, ranging from "Thin File" (insufficient data) to "Ultra Low Risk." This innovation enhances transparency and security for users engaging in DeFi, lending, or large transactions by providing a data-driven method to evaluate counterparty risk.
SIMD-96 Goes Live on Solana
The SIMD-96 proposal went live on the Solana network on February 14th. This update changes the priority fee structure from a 50-50 split between burn and validator rewards to allocating 100% of fees directly to validators. The goal is to strengthen validator incentives, potentially improving network security and decentralization. However, the removal of the token burn mechanism could lead to increased SOL token supply, which may exert downward pressure on its price over time.
Hyperliquid Launches HyperEVM Mainnet
Hyperliquid announced the mainnet launch of its HyperEVM on February 19th, introducing general-purpose programmability to its Layer 1 blockchain. HyperEVM enables developers to deploy and run Ethereum-compatible smart contracts, broadening the ecosystem's potential. The initial release supports seamless transfers between native HYPE and its HyperEVM-wrapped version. Built on the HyperBFT consensus mechanism, the network aims to maintain high performance and security while continuing to develop its tooling and analytical capabilities.
Security Incident: Bybit Hack
The industry was shaken on February 21st when Bybit, a major cryptocurrency exchange, suffered a security breach resulting in the loss of approximately 499,000 ETH, valued at around $15 billion. Initial reports suggest the attack was carried out by the Lazarus Group, a notorious hacking organization, who gained control of the exchange’s multi-signature cold wallet through a sophisticated phishing attack involving a fake signature interface and a malicious smart contract.
The news triggered a sharp market reaction, with the price of ETH dropping over 7% within hours. Widespread panic led to user withdrawals totaling $2.4 billion in a 24-hour period. The exchange responded swiftly, collaborating with other platforms to track and attempt to recover the stolen funds. Market sentiment stabilized within a day, and ETH prices recovered to above $2,700. The incident underscores the critical importance of robust security practices, including multi-factor authentication, hardware wallet usage, and thorough smart contract audits 👉 Explore more security strategies.
Ecosystem and Product Expansions
StakeStone Releases Whitepaper
StakeStone formally released its protocol whitepaper on February 26th. The project aims to provide a full-chain liquidity solution by issuing yield-bearing assets like STONE (an ETH staking derivative) and SBTC/STONEBTC (an omnichain BTC liquid token). Its LiquidityPad tool facilitates seamless asset movement across more than 30 blockchains. The ecosystem is governed by the STO token, which uses a veSTO (vote-escrow) model. Token holders who lock their STO receive governance rights and a share of protocol revenue. The protocol also features a multi-token burn mechanism designed to create deflationary pressure on STO.
MetaMask New Roadmap: Multi-Chain Support and Smart Contract Wallets
On February 28th, MetaMask unveiled a significant update to its product roadmap. The popular wallet will expand its support to include Bitcoin and Solana, allowing users to manage assets from these networks alongside their Ethereum holdings. A major technical upgrade will be the introduction of smart contract accounts (CA), which offer enhanced security features like social recovery and support for more complex, automated transactions compared to traditional externally-owned accounts (EOA). The update also includes support for ERC-5792 batch transactions to reduce gas fees and the planned launch of a MetaMask debit card in the U.S. to enable easier crypto payments.
Frequently Asked Questions
What does the Ethereum Gas limit increase mean for users?
The increase in the Gas limit allows each Ethereum block to process more transactions or complex smart contract interactions. For users, this typically translates to lower fees during times of network congestion and a smoother experience when using dApps, as transactions are less likely to get stuck.
How does on-chain credit scoring work?
On-chain credit scoring tools analyze the historical transaction behavior of a cryptocurrency wallet address. Factors like transaction frequency, volume, types of protocols interacted with, and past security incidents are evaluated to generate a risk score. This helps users assess the trustworthiness of a address before transacting.
What should I do to protect my assets after the Bybit hack?
This incident highlights the importance of self-custody and rigorous security habits. Users should store large amounts of crypto in a hardware wallet, never share private keys or seed phrases, enable multi-factor authentication on all exchange accounts, and thoroughly research any smart contract before approving a transaction 👉 View real-time security tools.
What are the benefits of smart contract accounts (CA) in MetaMask?
Smart contract accounts offer significant security and usability improvements over standard wallets. Key benefits include the ability to recover an account if you lose your keys, set spending limits, automate recurring payments, and bundle multiple transactions together to save on gas fees.
How does SIMD-96 affect the Solana economy?
By directing all priority fees to validators instead of burning half, SIMD-96 increases the rewards for securing the network. This could attract more validators, improving decentralization. However, since fewer SOL tokens are being burned, the overall supply may grow slightly faster, which could influence its long-term inflation rate and value.
What is the significance of Ondo Chain for tokenized assets?
Ondo Chain is specifically built to meet the regulatory and technical requirements of tokenizing real-world assets like stocks and bonds. Its permissioned validator set and built-in compliance features provide the necessary framework for institutional players to confidently issue and trade security tokens on-chain.
Conclusion
February 2025 has been a dynamic and instructive period for the Web3 and cryptocurrency industry. Groundbreaking developments in scalability, interoperability, and user experience demonstrate the relentless pace of innovation. From Ethereum’s capacity upgrade and MetaMask’s ambitious multi-chain vision to new specialized chains like Ondo, the infrastructure for a more open and efficient financial system is rapidly being built. However, the devastating exploit suffered by Bybit is a powerful reminder that security must remain a paramount concern for every participant in the ecosystem. As the industry continues to mature, balancing relentless innovation with rigorous risk management will be the key to sustainable growth.