Introduction

This report provides an overview of major developments in the blockchain and cryptocurrency industry throughout February 2025. These events highlight the market’s continued dynamism while also offering insights into emerging trends. However, several security incidents—including exchange hacks and exploited smart contract vulnerabilities—serve as a critical reminder for industry participants to reinforce security measures, enhance technical safeguards, and improve risk management strategies. Notable highlights from the month include the surging of Ethereum gas fees to nearly 32 million units, Ondo Finance unveiling its Layer 1 blockchain, Ondo Chain, and Etherscan launching an on-chain address credit scoring system. Additionally, SIMD-96 has gone live on Solana, Hyperliquid introduced the HyperEVM mainnet, and Bybit suffered a significant security breach, resulting in the theft of approximately $1.5 billion in ETH. Other key updates include StakeStone’s official whitepaper release and MetaMask’s expansion of its capabilities to support Bitcoin and Solana while integrating smart contract accounts.

Abstract

• Ethereum raised its gas limit to nearly 32 million units for the first time in three years.
• Ondo Finance debuts its Layer 1 blockchain, Ondo Chain.
• Etherscan introduces an on-chain address credit scoring system.
• SIMD-96 goes live on Solana, enabling validators to receive full-priority fees
• Hyperliquid rolls out the HyperEVM mainnet.
• Bybit suffers a major hack, losing approximately $1.5 billion in ETH.
• StakeStone officially publishes its whitepaper.
• MetaMask reveals its updated roadmap, supporting Bitcoin and Solana while integrating smart contract accounts.

Timeline of Key Events

Key Events

2/5: Ethereum Raises Gas Limit for the First Time in Three Years, Increasing to Nearly 32 Million Units

On February 5, 2025, the Ethereum network raised its block gas limit from 30 million to nearly 32 million units (with a potential future cap of 36 million) for the first time in the post-Merge era. This adjustment aims to enhance transaction processing capacity and reduce congestion costs. The change was implemented without requiring a hard fork and took effect automatically after approval by a majority of validators, marking an improvement in Ethereum’s governance flexibility. Raising the gas limit allows each block to accommodate more transactions or complex operations, optimizing the DeFi user experience, alleviating network congestion during peak periods, and reducing the migration of users to alternative chains like Solana. However, this move could increase the operational burden on nodes in the short term, requiring a long-term balance between performance and efficiency. [1]

2/6: Ondo Finance Launches Layer 1 Blockchain Ondo Chain

Ondo Finance has announced the launch of Ondo Chain, a Layer 1 blockchain designed specifically for institutional financial markets. The chain aims to address infrastructure challenges in tokenized securities (RWA) and accelerate the integration of global capital markets onto blockchain networks.

Ondo Chain combines public blockchains’ openness with permissioned chains’ regulatory compliance, offering institutions a high-security solution for RWA issuance, management, and cross-chain liquidity. Key features include an institution-grade network security model based on RWA staking, a regulated validator network, seamless connectivity with traditional financial systems, on-chain oracles, and native cross-chain communication mechanisms. Additionally, Ondo Chain employs a native proof-of-reserve mechanism to ensure transparency and full collateralization of RWA issuances. This innovative blockchain could further drive institutional capital into on-chain markets and promote the convergence of DeFi with traditional securities markets. [2]

2/10: Etherscan Introduces On-Chain Address Credit Scoring Feature

Ethereum explorer Etherscan has recently launched an on-chain address credit scoring feature powered by Blockchain Bureau. This feature evaluates the credit risk of user addresses by analyzing on-chain activity and assigns a credit score to each address. The scoring system consists of eight tiers, ranging from “Thin File” (insufficient on-chain information) to “Ultra Low Risk.” This system enables users to assess the reliability of an address based on blockchain data, enhancing transparency and security in blockchain transactions. [3]

As a leading Ethereum blockchain explorer, Etherscan has continuously worked to provide users with more efficient and transparent blockchain data access. With this new feature, users can review transaction histories and assess the creditworthiness of on-chain addresses, helping identify potential risks.

2/14: SIMD-96 Goes Live on Solana, Validators to Receive Full Priority Fees

According to SolanaFloor, SIMD-96 is now live on Solana. This update changes the priority fee mechanism from a 50-50 split (where 50% of fees were burned and 50% were distributed to validators) to a model where 100% of fees go directly to validators. The SIMD-0096 proposal in the Solana ecosystem was approved in May last year.

This change may have multiple impacts on the Solana network.

First, validators will receive increased economic incentives, which could boost their participation and enhance the network’s decentralization. However, eliminating the fee-burning mechanism may increase the SOL token supply, exerting downward pressure on its price. Additionally, the new fee distribution model might spark concerns within the community regarding network inflation and centralization risks. [4]

2/19: Hyperliquid Launches HyperEVM Mainnet

The HyperEVM mainnet by Hyperliquid has officially launched, introducing “universal programmability” to its Layer 1 blockchain and enabling developers to deploy Ethereum-compatible smart contracts. The initial version supports native spot transfers between HYPE and the HyperEVM version of HYPE while inheriting security and high performance through the HyperBFT consensus mechanism. Although developer tools and analytics features are improving, Hyper Foundation has launched a bug bounty program and plans to add ERC-20 native transfers and precompiles in future network upgrades. [5]

This move marks a significant step for Hyperliquid in enhancing platform performance and expanding its ecosystem. By integrating Ethereum-compatible smart contract functionality into its high-performance Layer 1 blockchain, Hyperliquid can attract Ethereum developers while laying the technical groundwork for more diverse DeFi applications and innovations. Additionally, support for seamless spot transfers within the platform strengthens market efficiency.

2/21: Bybit Suffers Hack, $1.5 Billion in ETH Stolen

On the evening of February 21, 2025, cryptocurrency exchange Bybit experienced the largest hack in its history. The exchange was reportedly compromised by North Korea’s Lazarus Group, which used forged signature interfaces and malicious smart contracts to gain control over Bybit’s Ethereum multisig cold wallet, stealing approximately 499,000 ETH (worth around $1.5 billion). This attack not only set a record as the largest crypto theft in history but also had a profound impact on the market.

Following the incident, ETH prices plummeted by over 7%, briefly reaching a low of $2,618. Panic spread rapidly, leading to $2.4 billion in withdrawals within 24 hours. Bybit responded swiftly, working with other exchanges—including Gate.io—to track and freeze the stolen funds. As the situation stabilized, ETH prices rebounded above $2,700 within a day. The exchange is now actively replenishing its ETH reserves to cover the losses caused by the attack. [6]

2/26: StakeStone Officially Releases Whitepaper

On February 26, StakeStone officially released its whitepaper. The document outlines how the protocol issues yield-bearing assets such as STONE (an ETH staking derivative) and SBTC/STONEBTC (cross-chain Bitcoin liquidity tokens). These assets work with its liquidity aggregation tool, LiquidityPad, enabling seamless asset transfers and yield maximization across more than 30 blockchain networks. The governance token, STO, employs a veSTO (vote escrow) model, allowing token holders to lock STO to gain governance rights and a share of protocol revenue (25% of ETH staking yield). StakeStone has also implemented a three-layer token burn mechanism:

1. 20% of STO from cross-chain fees is burned.
2. Liquidity mining rewards are dynamically burned.
3. 50% of protocol surplus is used for open-market buybacks.

StakeStone’s cross-chain liquidity solution could reshape the DeFi landscape, offering ETH and BTC’s standardized yield-bearing asset interface. The veSTO model, by tying governance rights to yield distribution, could challenge the market dominance of centralized staking providers like Lido. However, the protocol’s reliance on third-party infrastructures such as LayerZero and Wormhole poses security risks that have yet to be fully audited. [7]

2/28: MetaMask Unveils New Roadmap, Adding Bitcoin and Solana Support, Introducing Smart Contract Accounts

On February 28, MetaMask announced a new roadmap that includes support for Bitcoin (BTC) and Solana (SOL), enabling users to manage multi-chain assets within a single wallet.

Additionally, MetaMask is introducing smart contract accounts (CA), which provide enhanced security features such as transaction recovery mechanisms and more complex automated transactions, distinguishing them from traditional externally owned accounts (EOA). The update also includes support for ERC-5792 batch transactions to reduce gas fees and improve transaction efficiency. Furthermore, MetaMask plans to launch a debit card in the U.S., enabling crypto payments.

This upgrade has far-reaching implications for the market. Multi-chain support strengthens MetaMask’s competitive edge over rivals like Trust Wallet and Brave. Introducing smart contract accounts may accelerate the adoption of Ethereum’s account abstraction (AA) technology, making Web3 applications more user-friendly. Additionally, the launch of MetaMask’s debit card could drive broader crypto payment adoption, further integrating digital assets into the real economy. [8]

Conclusion

February 2025 was a dynamic month for blockchain and crypto, with significant events shaping the industry. Key projects like Ethereum, Metamask, SMID-96, Stackstone, and Hyperliquid saw major developments, including platform launches, service expansions, token issuances, feature rollouts, mainnet activations, fee voting, and mining activities. These advancements highlight ongoing innovation, foster technological and community growth, and provide fresh industry expansion momentum.


References:

1. Coindesk,https://www.coindesk.com/markets/2025/02/04/ethereum-raises-gas-limits-for-first-time-since-2021-boosting-eth-appeal
2. X,https://x.com/OndoFinance/status/1887522597480337672
3. X,https://x.com/etherscan/status/1888401431641907591
4. X,https://x.com/SolanaFloor/status/1889701379607794128
5. Theblock,https://www.theblock.co/post/341424/hyperliquid-launches-hyperevm-on-mainnet-to-bring-general-purpose-programmability
6. Coindesk,https://www.coindesk.com/markets/2025/02/21/bitcoin-ether-slumps-as-crypto-prices-crumble-on-report-of-massive-usd1-4b-bybit-security-incident
7. X,https://x.com/Stake_Stone/status/1894714594230460681
8. X,https://x.com/MetaMask/status/1895292999615369660

Gate Research
Gate Research is a leading blockchain and cryptocurrency research platform, offering in-depth insights on technical analysis, market trends, industry reports, key developments, and macroeconomic policies.

Click the link to explore more.

Disclaimer
Cryptocurrency investments carry high risks. We strongly recommend that users conduct their own research and fully understand the nature of any asset or product before making investment decisions. Gate.io assumes no responsibility for any losses or damages resulting from such investments.