- Ethereum‘s Holesky testnet has finally achieved finality after a two-week delay following the Pectra upgrade, though mainnet implementation remains on hold.
- Starknet is expanding beyond Ethereum to become Bitcoin‘s execution layer by 2025, aiming to scale Bitcoin from 13 TPS to thousands while maintaining its Ethereum presence.
- Former Ethereum Foundation researcher Danny Ryan has joined Etherealize to help bring Ethereum technology to traditional financial markets.
Ethereum development continues to evolve on multiple fronts as key protocol upgrades face challenges while ecosystem expansion accelerates. The network’s Holesky testnet has finally achieved finality after nearly two weeks of delays, while layer-2 solution Starknet reveals plans to integrate with Bitcoin alongside its existing Ethereum operations.
Holesky Testnet Overcomes Technical Hurdles
Ethereum’s Holesky testnet has finally achieved finality after struggling with a client-software configuration bug that had prevented proper operation since February 24. The testnet’s recovery comes as developers are still deliberating the timeline for implementing the Pectra upgrade on the Ethereum mainnet, effectively delaying the major network update.
The testnet serves as a critical testing ground for Ethereum’s upcoming protocol changes, allowing developers to identify and resolve issues before implementing updates on the main blockchain.
Starknet Expands Beyond Ethereum to Bitcoin Integration
In a strategic move to enhance interoperability between blockchain networks, Starknet, a leading Ethereum layer-2 scaling solution, has announced plans to settle transactions on both Bitcoin and Ethereum. The project is collaborating with BTC wallet Xverse to bring "a full DeFi experience to Bitcoin users" with integration targeted for Q2 2025.
According to the announcement, Xverse aims to "achieve Bitcoin’s DeFi take-off moment" through this integration. The Starknet Foundation has published a new Bitcoin Roadmap outlining how it will maintain its Ethereum operations while simultaneously "becoming Bitcoin’s execution layer," with the goal of scaling Bitcoin "from 13 TPS to thousands."
This development represents part of a broader trend of developers exploring ways to leverage Bitcoin’s security and liquidity for expanding decentralized finance capabilities, despite Bitcoin’s limited programmability compared to Ethereum.
Danny Ryan Shifts Focus to Traditional Finance
Danny Ryan, a prominent Ethereum researcher who previously worked at the Ethereum Foundation (EF), has joined Etherealize, an organization focused on bringing Ethereum technology to Wall Street. Ryan had initially left the EF in September and entered discussions to return as its leader, but ultimately "ended up mutually parting ways" with the foundation in January.
In an interview with CoinDesk, Ryan explained his move was motivated by Ethereum reaching a technological inflection point: "Ethereum is much bigger than the EF. It’s not just a couple of changes at the EF that are going to make or break Ethereum at large."
Sony and LINE Collaborate on Blockchain Integration
Sony’s blockchain division is partnering with Japanese social media giant LINE to integrate several popular mini-apps onto Sony’s Soeneium network. LINE, which boasts approximately 200 million active users across its platform, will bring four games to Soeneium: Sleepagotchi, Farm Frens, Puffy Match, and Pocket Mob.
The integration aims to facilitate features like in-game rewards and purchases. Soneium, which launched in January, is an Ethereum layer-2 solution built using Optimism’s OP Stack technology. The collaboration aligns with Sony’s stated goal of bridging traditional Web2 users into the Web3 space.
Regulatory Developments Favor Crypto Industry
In significant regulatory news, the U.S. House of Representatives has struck down an IRS rule that would have imposed information collection requirements on decentralized entities. The bipartisan vote, which included support from 71 Democrats, represents an important victory for the DeFi sector.
Additionally, the Office of the Comptroller of the Currency (OCC) has announced that federally regulated banks can engage in various cryptocurrency activities without prior approval, while also withdrawing a requirement for banks to report liquidity risks related to crypto assets.
Meanwhile, decisions on new cryptocurrency ETFs in the United States, including potential offerings for XRP, Solana, Dogecoin, and Litecoin, will likely be delayed until President Trump’s nominee to head the SEC, Paul Atkins, is confirmed by the Senate.
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