<h2>Steve Yun Launches $100 Million TVM Ventures Fund for TON-Based Startups</h2>Steve Yun, a veteran of the&nbsp;<a href="https://coin360.com/coin/toncoin-ton">TON</a> Foundation, has launched&nbsp;<a href="https://www.theblock.co/post/338477/ton-foundation-steve-yun-tvm-ventures">TVM Ventures</a>, a $100 million venture capital fund dedicated to TON-based startups, focusing primarily on decentralized finance (<a href="https://coin360.com/glossary/decentralised-finance">DeFi</a>) and payment finance (PayFi). The fund's capital is contributed by Yun and an undisclosed&nbsp;<a href="https://coin360.com/coin/toncoin-ton">Toncoin</a> miner. Targeting seed-stage investments valued between $5 million to $10 million, TVM Ventures plans to take leading roles with investments ranging from $500,000 to $1 million, along with $5 million in liquidity support for startups.&nbsp;So far, the fund has invested in four projects, including Factorial and Torch Finance. Yun anticipates significant growth for TON’s ecosystem, expecting increased traction by Q2 2025, driven by innovations like the tgBTC bridge. He predicts a substantial rise in Toncoin's value, forecasting it could exceed $40 in the next bull cycle. TVM Ventures is based in Dubai and aims to deploy all capital within 24 months.<div class="page-break" style="page-break-after:always;">&nbsp;</div><h2>Laton Ventures Raises $50M for Global Seed Stage Gaming Investments, Excluding Web3</h2>Turkish venture capital firm Laton Ventures has raised $50 million to globally invest in seed and pre-seed stage gaming and application startups, explicitly excluding&nbsp;<a href="https://coin360.com/glossary/web3-companies-projects">Web3</a> and cryptocurrency-related projects. This move follows the launch of a $35 million gaming venture fund in April 2024, where the firm underscored the importance of artificial intelligence and Web3 in gaming.&nbsp;Laton Ventures’ investment portfolio focuses on mobile gaming studios and innovative social gaming platforms, leveraging a network of over 40 prominent investors, including entrepreneurs and senior executives from notable gaming and technology companies such as Peak and Supercell, the developer behind 'Clash of Clans.' The investor group also features institutional backers and family offices from more than 10 countries, indicating significant interest from the global market. This fundraising initiative reflects the growing confidence in the gaming industry despite a cautious approach regarding emerging Web3 technologies.This article has been refined and enhanced by ChatGPT.

Faceless robot balances on spinning coin amid gaming investment symbols

Faceless robot balances on spinning coin amid gaming investment symbols_11zon.webp

Crypto and Gaming Funding Recap: TON Gets $100M Boost While Gaming VC Grows

<h2>Convenience Class Creditors to Get 118% Compensation</h2>Creditors of&nbsp;<a href="https://coin360.com/coin/ftx-token-ftt">FTX</a> Digital Markets with claims under $50,000 will start&nbsp;<a href="https://www.theblock.co/post/338818/ftx-creditors-in-bahamas-process-with-claims-below-50000-to-receive-repayments-on-feb-18">receiving repayments</a> on Feb. 18, marking the first major payout since the collapsed crypto exchange entered bankruptcy proceedings in late 2022. These creditors, classified as Convenience Class claimants, will receive their repayments along with a 9% annual interest rate calculated from their claim value as of Nov. 11, 2022, according to a statement released Tuesday.The repayment process follows nearly two years of complex restructuring efforts and legal proceedings, during which estimates of creditor reimbursement timelines have repeatedly shifted. In November 2024, the FTX estate projected that creditor payments would begin by March 2025.&nbsp;However, the latest update from FTX Digital Markets' liquidator, PwC, indicates that Convenience Class creditors in the Bahamas will now see compensation sooner than anticipated. These creditors, holding claims below $50,000, are set to receive approximately 118% of their original claim amount.Larger creditors outside the Convenience Class bracket will have to wait longer. PwC had previously stated that these claimants can expect repayments to begin in the second quarter of 2025. Payments will be processed by digital asset custodian BitGo, which has been tasked with facilitating distributions to both individual and institutional creditors. These repayments will be issued in USD fiat currency, rather than cryptocurrency, as part of the structured&nbsp;<a href="https://coin360.com/glossary/understanding-liquidation-crypto-trading-guide">liquidation</a> plan.FTX, once a dominant force in the cryptocurrency industry, filed for Chapter 11 bankruptcy on Nov. 11, 2022, in both Delaware, where its primary trading arm was based, and the Bahamas, where its subsidiary, FTX Digital Markets, was headquartered. The exchange’s collapse triggered widespread legal battles over asset recovery and creditor claims, with ongoing liquidation efforts aimed at maximizing repayments. While this marks a step forward for some creditors, the broader restructuring process remains far from complete.This article has been refined and enhanced by ChatGPT.

Faceless robot celebrates as glowing currency rains in bank hall

Faceless robot celebrates as glowing currency rains in bank hall_11zon.webp

FTX Bahamas Creditors Set to Receive Repayments This Month

<h2>Utah Moves to Become First U.S. State with Bitcoin Reserves After 8-1 Vote</h2>Utah is poised to become the first U.S. state to adopt Bitcoin reserves following the approval of a bill in the Utah House, which received an 8-1 vote. The bill allows the state to invest a portion of public funds in digital assets with a market cap over $500 billion and includes approved&nbsp;<a href="https://coin360.com/glossary/stablecoin">stablecoins</a> as investment options. This legislative effort is expedited by Utah's&nbsp;<a href="https://www.youtube.com/watch?v=ewfhF7m9xhg">45-day legislative calendar</a>, which is unmatched in speed and momentum compared to other states. The move has garnered significant political will, with Senator Cynthia Lummis and Dennis Porter from the Satoshi Action Fund emphasizing Utah's leading role in the Bitcoin initiative.&nbsp;Notably, every recent bill from the House Economic Development Committee has become law, bolstering confidence in this proposal's success. Arizona is the only other state at a similar legislative stage, while states like Alabama and Florida have shown public support but lack formal proposals.<div class="page-break" style="page-break-after:always;">&nbsp;</div><h2>Thailand SEC to Launch Blockchain Platform for Tokenized Debt Trading</h2>Thailand’s Securities and Exchange Commission (SEC) is set to launch a blockchain-based trading platform to enable securities firms to trade debt instruments via digital tokens, enhancing the efficiency of the local capital market. Deputy Secretary-General Jomkwan Kongsakul emphasized that the platform aims to reduce the current 14-day delay in trading bonds from the primary to secondary market by digitalizing settlement, trading, and investor registration processes. The initiative will introduce two types of digital securities: traditional bonds converted into digital form and electronic securities designed specifically for the new platform.&nbsp;The SEC has already approved four digital token projects and is reviewing two additional ones. Furthermore, private sector firms may develop independent chains as long as they comply with SEC standards. The project is part of Thailand's broader goal to modernize financial infrastructure in response to growing interest in tokenized investments and digital assets.<div class="page-break" style="page-break-after:always;">&nbsp;</div><h2>Kraken and Coinbase Secure Regulatory Approvals to Expand Services in EU and UK</h2>On February 3, 2025,&nbsp;<a href="https://coin360.com/exchange/kraken">Kraken</a> and Coinbase, prominent U.S.-based cryptocurrency exchanges, secured crucial regulatory approvals to expand their services in the European Union and the UK. Kraken obtained a Markets in Financial Instruments Directive (MiFID) license by acquiring a Cypriot investment firm, enabling it to offer compliant derivatives products to advanced crypto traders in specific EU markets. Meanwhile, Coinbase was granted a Virtual Asset Service Provider (VASP) registration from the UK's Financial Conduct Authority, allowing it to provide crypto and fiat services in the UK.&nbsp;This expansion is timely as the EU's Markets in Crypto-Assets (MiCA) regulations will become effective in late 2024, with the UK's comprehensive crypto regulatory framework expected in early 2025. Shannon Kurtas, Kraken's Co-GM, emphasized the acquisition's reflection of their confidence in the EU market and their dedication to creating a regulated environment for traders and investors.<div class="page-break" style="page-break-after:always;">&nbsp;</div><h2>India Introduces 70% Penalty on Undisclosed Crypto Gains Under New Tax Amendments</h2>India's new crypto tax amendments impose a hefty 70% penalty on undisclosed cryptocurrency gains, effective retroactively from February 1, 2025. Classified under Section 158B of the Income Tax Act, these regulations highlight the government's commitment to increasing tax compliance and transparency in digital assets, equating crypto profits to traditional assets like jewelry and bullion. Traders who have not reported crypto profits since 2021 may face severe penalties and backdated tax liabilities.&nbsp;The government also mandates reporting from cryptocurrency exchanges, responding to concerns regarding unpaid crypto taxes totaling $97 million as of December 2024. Major exchanges like&nbsp;<a href="https://coin360.com/review/bybit">Bybit</a> have already suspended services in India due to heightened regulatory pressures, leading to increased uncertainty in the market.&nbsp;<div class="page-break" style="page-break-after:always;">&nbsp;</div><h2>Russia Launches Online Reporting for Digital Currency Miners in Taxpayer Accounts</h2>On February 3, 2025, the Federal Tax Service of Russia announced a new functionality in taxpayers' personal accounts, allowing users to report the receipt of digital currency through an online service. This initiative aligns with the federal law on digital financial assets and cryptocurrency, obligating miners to report mined currencies by the 20th of the month following their acquisition. Taxpayers, including individuals and legal entities engaged in cryptocurrency mining, must utilize a qualified electronic signature to access this feature.&nbsp;For individuals, reporting can be done in the "Mining" section, while legal entities will report in the "Mining of Digital Currency" section. Additionally, individual entrepreneurs and legal entities can submit reports only if they are registered in the official registry of miners and operators, ensuring compliance with the new regulatory requirements established for the taxation of digital currency in Russia.<div class="page-break" style="page-break-after:always;">&nbsp;</div><h2>Trump Launches U.S. Sovereign Wealth Fund, Sparks Speculation of Bitcoin Investments</h2>On February 3, 2025, President Donald Trump announced an&nbsp;<a href="https://www.whitehouse.gov/presidential-actions/2025/02/a-plan-for-establishing-a-united-states-sovereign-wealth-fund/">executive order</a> to establish a U.S. sovereign wealth fund aimed at enhancing fiscal sustainability and long-term economic stability. The directive requires the Treasury and Commerce Secretaries to develop a comprehensive plan within 90 days, covering funding mechanisms, investment strategies, and governance structures. Sovereign wealth funds, which manage national wealth, have notable global examples like Norway’s $2 trillion fund.&nbsp;While Trump's order did not explicitly mention Bitcoin, speculation is high that the fund could allocate capital to the cryptocurrency due to the pro-Bitcoin stances of appointed leaders Howard Lutnick and Scott Bessent. Apollo Stats co-founder Thomas Fahrer estimated the fund could amass $5 trillion, with a 10% allocation to Bitcoin potentially reaching $500 billion. However, bettors on Polymarket currently assign only a 14% probability that the fund will invest in Bitcoin before July, indicating skepticism about immediate crypto exposure.<div class="page-break" style="page-break-after:always;">&nbsp;</div><h2>Missouri Proposes Bill to Invest Up to 10% of Public Funds in Bitcoin</h2>On February 4, 2025, Missouri introduced&nbsp;<a href="https://twitter.com/Julian__Fahrer/status/1885523288195228126">Senate Bill SB 614</a>, which aims to permit state investments in Bitcoin while safeguarding the rights of individuals in the cryptocurrency space. The proposed legislation allows the state to allocate up to 10% of public funds, amounting to a potential investment of $1.8 billion from the Missouri State Treasurer's total fund of approximately $18 billion.&nbsp;Unique to this bill are its protections for participants in the Bitcoin ecosystem; it guarantees the right to self-custody, enabling residents to control their digital assets without governmental interference. Additionally, the proposal legally protects Bitcoin mining activities and exempts Bitcoin nodes from needing a money transmitter license. SB 614 is now pending review by the Missouri State Senate, signaling an increasing interest in Bitcoin adoption at the state level amidst a broader trend across the United States.<div class="page-break" style="page-break-after:always;">&nbsp;</div><h2>Senator Hagerty Introduces GENIUS Act to Regulate Stablecoins and Boost Adoption</h2>Senator Bill Hagerty has&nbsp;<a href="https://twitter.com/EleanorTerrett/status/1886790411705815194">introduced</a> the GENIUS (Guiding and Establishing National Innovation in U.S. Stablecoins) Act to establish a regulatory framework for stablecoins, promoting clearer regulations and fostering adoption in the U.S. This legislation requires stablecoin issuers to back their digital assets with U.S. currency, Treasury bills, and other assets. Key provisions include specific licensing and reserve requirements, with issuers holding over $10 billion following Federal Reserve rules, while smaller ones adhere to state regulations. The bill aims to enhance financial inclusion and improve transaction efficiency.&nbsp;Notably, it mandates audited monthly reports on reserves, with penalties for falsifying documents. Co-sponsored by Senators Kirsten Gillibrand, Tim Scott, and Cynthia Lummis, the bill signals bipartisan interest in stablecoin regulation. Trump’s recent executive order encourages the development of dollar-backed stablecoins, aligning with the bill’s goals while stalling the progress of a central bank digital currency.<div class="page-break" style="page-break-after:always;">&nbsp;</div><h2>Gwacheon City, South Korea, Launches Crypto Seizure System for Tax Evaders</h2>Gwacheon City in South Korea is set to implement a virtual asset electronic seizure system in March 2025 to track and confiscate cryptocurrencies from tax evaders. This initiative aims to ensure tax justice for compliant citizens, as outlined by Tax Division Chief Kang Min-ah. Approximately 361 individuals owing over $2,060 in local taxes, totaling around $12.9 million, have been identified for enforcement. Authorities will compare tax records with data from major domestic crypto exchanges.&nbsp;Over the past five years, Gwacheon has seized $206,000 in crypto, recovering $75,500 in 2024 alone. The system will issue advance warnings before seizures, promoting voluntary payment. Meanwhile, South Korea's martial law declaration has delayed crucial crypto reforms, such as legalizing securities token offerings, further complicating the sector. This move signifies an intensified focus on tax compliance amidst a broader crackdown on crypto-related crimes in the country.<div class="page-break" style="page-break-after:always;">&nbsp;</div><h2>CFTC Investigates Crypto.com and Kalshi Over Super Bowl Betting Contracts</h2>The Commodity&nbsp;<a href="https://coin360.com/glossary/futures-contract">Futures</a> Trading Commission (CFTC) is investigating&nbsp;<a href="https://coin360.com/exchange/crypto_com">Crypto.com</a> and Kalshi over their Super Bowl event contracts, potentially leading to regulatory action in the expanding prediction markets sector. Crypto.com announced its intention to launch these contracts on December 19, 2024, allowing little time for regulatory review before the holiday break. The CFTC emphasizes strict standards for self-certified contracts to prevent manipulation.&nbsp;While the agency cannot immediately halt trading, it retains the authority to impose future regulations. Kalshi's Super Bowl market, which began on January 24, has seen nearly $2.5 million in trading volume, along with over $1.5 million linked to ads during the game. Despite the booming prediction market, which handled over $2.5 billion in bets during the 2024 U.S. presidential election, the heightened scrutiny by the CFTC could significantly alter the operational landscape for firms like Crypto.com and Kalshi.<div class="page-break" style="page-break-after:always;">&nbsp;</div><h2>AFL-CIO Sues U.S. Treasury Over Musk's Access to Private Financial Data</h2>The AFL-CIO, the largest labor union in the U.S., has filed a lawsuit against Treasury Secretary Scott Bessent, claiming the U.S. Treasury improperly allowed Elon Musk's Department of Government Efficiency (DOGE) to access sensitive personal and financial data of millions of Americans. The lawsuit alleges violations of federal privacy laws, asserting that information such as Social Security numbers, bank details, and home addresses are at risk due to this oversight.&nbsp;This controversy arises from the Biden administration's decision to place Musk in charge of federal cost-cutting efforts via DOGE. High-profile Democrats, including Senators Ron Wyden, Chuck Schumer, and Elizabeth Warren, have criticized this action. Schumer has pledged to introduce legislation aimed at limiting Musk's influence within Treasury operations, indicating strong partisan concerns over privacy and oversight related to this unprecedented access to sensitive information.This article has been refined and enhanced by ChatGPT.

Tokenized debt trading, robot at futuristic holographic blockchain terminal

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Regulators Tighten Crypto Laws: India’s 70% Crypto Tax, Utah’s Bitcoin Bet, and EU Approvals

<h2>UBS Trials Tokenized Gold on ZKSync, Paving the Way for Blockchain in Banking</h2>Swiss banking giant UBS recently conducted a Proof-of-Concept (PoC) trial of its Key4 Gold product on the&nbsp;<a href="https://coin360.com/coin/ethereum-eth">Ethereum</a> Layer-2 network&nbsp;<a href="https://coin360.com/coin/zksync-zk">ZKSync</a>, aiming to enhance gold investment frameworks while ensuring user privacy and operational efficiency. The trial involved scaling challenges related to high transaction volumes and the need for customer data protection. By utilizing ZKSync’s Validium mode, which allows for off-chain data storage, UBS achieved improved transaction speed and efficiency.&nbsp;The completed test allows for unlimited transaction volumes and enables clients to physically receive their gold. This initiative reflects UBS's commitment to exploring blockchain solutions, positioning tokenized gold investments as commercially viable.&nbsp;<a href="https://coin360.com/glossary/blockchain">Blockchain</a> experts regard this advancement as significant for the future of financial systems, with UBS’s efforts signaling a trend towards decentralized technology adoption in traditional banking operations, highlighting increased interest in&nbsp;<a href="https://coin360.com/glossary/web3-companies-projects">Web3</a> solutions.<div class="page-break" style="page-break-after:always;">&nbsp;</div><h2>Grayscale Launches Dogecoin Trust, Enhancing Investment Opportunities for DOGE</h2>Grayscale Investments has launched the Grayscale&nbsp;<a href="https://coin360.com/coin/dogecoin-doge">Dogecoin</a> Trust, offering investors a new opportunity to gain exposure to Dogecoin (<a href="https://coin360.com/coin/dogecoin-doge">DOGE</a>). This single-asset trust reflects the evolution of Dogecoin from a meme to a tool for financial inclusion, promoting faster, cheaper transactions and greater accessibility. Grayscale's Head of Product &amp; Research, Rayhaneh Sharif-Askary, stated that Dogecoin serves as a derivative of&nbsp;<a href="https://coin360.com/coin/bitcoin-btc">Bitcoin</a> that helps underserved communities engage with the financial system. The Trust is now open for daily subscriptions to eligible accredited investors, ensuring direct exposure to DOGE.&nbsp;Furthermore, the Dogecoin ecosystem is expanding through initiatives led by the Dogecoin Foundation, which aims to develop open-source tools to enhance the cryptocurrency's utility in real-world applications, particularly in sectors like remittances. These developments position Dogecoin as a viable option for retail transactions, aiming to reduce reliance on exploitative financial intermediaries.<div class="page-break" style="page-break-after:always;">&nbsp;</div><h2>21Shares Seeks SEC Approval for Spot Polkadot ETF Amid Market Challenges</h2>21Shares has submitted a&nbsp;<a href="https://www.sec.gov/Archives/edgar/data/2054247/000121390025008848/ea0229226-s1_21shares.htm">filing</a> to the U.S. SEC for approval of a spot&nbsp;<a href="https://coin360.com/coin/polkadot-dot">Polkadot</a> ETF, anticipated to be listed on the Cboe BZX Exchange, with&nbsp;<a href="https://coin360.com/review/coinbase">Coinbase</a> serving as the custodian for&nbsp;<a href="https://coin360.com/coin/polkadot-dot">DOT</a> holdings. This initiative builds on 21Shares' earlier achievement of launching the first Polkadot exchange-traded product in Switzerland. However, the Polkadot market faces challenges, as the cryptocurrency has seen a 5.16% decline over the past year and a 10.48% drop in the last month.&nbsp;The filing indicates that the ETF's success hinges on Polkadot's market performance and warns that future price growth is uncertain. Negative reactions on social media have emerged surrounding this ETF proposal. The surge in crypto ETF filings follows the departure of SEC Chair Gary Gensler, suggesting optimism for a favorable regulatory environment for digital assets moving forward, potentially expanding investment opportunities for traditional investors.<div class="page-break" style="page-break-after:always;">&nbsp;</div><h2>Telcoin Becomes First Federally Regulated Digital Asset Bank in the U.S. After Nebraska Charter Approval</h2><a href="https://coin360.com/coin/telcoin-tel">Telcoin</a> has received approval for its Digital Asset Depository Bank Charter in Nebraska, becoming the first federally regulated digital asset depository bank in the USA. This significant milestone allows Telcoin to issue US dollar-backed&nbsp;<a href="https://coin360.com/glossary/stablecoin">stablecoins</a>, termed “Digital Cash” or eUSD. To commence operations, Telcoin must maintain liquid assets equal to 100% of outstanding stablecoins, provide a surety bond of $1 million, and secure $10 million in insurance for various liabilities.&nbsp;Customer deposits will be held in FDIC-insured institutions in Nebraska. Additionally, Telcoin is required to engage in community education about digital assets and display clear notices regarding FDIC insurance. The charter includes a $50,000 fee and emphasizes the importance of operational soundness.&nbsp;<div class="page-break" style="page-break-after:always;">&nbsp;</div><h2>Sol Strategies Expands Holdings with Acquisition of 40,300 SOL, Raising Total to 189,968 SOL</h2>Sol Strategies, a Canadian publicly traded company, has expanded its&nbsp;<a href="https://coin360.com/coin/solana-sol">SOL</a> Holdings significantly through recent acquisitions. Between January 19 and January 31, 2025, the company acquired an additional 40,300 SOL tokens for approximately 14,337,332 CAD (9,935,329 USD), at an average price of 355.77 CAD (246.53 USD) per token. Furthermore, they completed a second phase of a private placement of convertible bonds, raising 2.5 million USD to buy 6,564.47 SOL at an average cost of 380.84 CAD (265.65 USD) per token.&nbsp;As of January 31, 2025, Sol Strategies holds around 189,968 SOL tokens, purchased for about 48.7 million CAD, reflecting an average acquisition price of 256.21 CAD per SOL. The estimated value of these holdings, based on the SOL closing price at the end of January 2025, stands at approximately 63.7 million CAD, highlighting the company's strategic investments in the cryptocurrency market.<div class="page-break" style="page-break-after:always;">&nbsp;</div><h2>Neptune Digital Assets Acquires $270K in Dogecoin; Second Public Company to Invest in DOGE&nbsp;</h2>On February 4, 2025, Neptune Digital Assets Corp., a publicly traded Canadian blockchain company, announced the purchase of 1 million&nbsp;<a href="https://coin360.com/coin/dogecoin-doge">Dogecoin</a> (<a href="https://coin360.com/coin/dogecoin-doge">DOGE</a>) tokens for approximately $270,000, executed through a strategic derivative purchase at an average price of $0.37 per token on December 27, 2024. This acquisition marks Neptune as the second publicly traded company to invest in DOGE, following Spirit&nbsp;<a href="https://coin360.com/glossary/blockchain">Blockchain</a>'s recent buy.&nbsp;Neptune's CEO Cale Moodie emphasized their growth strategy and prudent debt management, indicating plans for further acquisitions. The increasing interest in DOGE from institutional investors is underscored by Bitwise’s recent efforts to launch a spot Dogecoin ETF, suggesting a growing market demand. Other firms, including Osprey Funds and Rex Shares, are also pursuing Dogecoin ETFs, reflecting a broader trend of institutional engagement with cryptocurrencies, particularly Dogecoin, as an investment asset.This article has been refined and enhanced by ChatGPT.

Cubic robot tosses Dogecoin in dreamy pastel clay-like landscape

Cubic robot tosses Dogecoin in dreamy pastel clay-like landscape_11zon.webp

Institutional Crypto Boom: UBS, Grayscale, and 21Shares Lead Innovations

<h2>Network Expansion Unlocks New Capabilities</h2><a href="https://coin360.com/coin/ethereum-eth">Ethereum</a> recorded a major milestone on February 4, 2025, when its&nbsp;<a href="https://x.com/etherscan/status/1886720888168702309">gas limit</a> reached a historic 35.3 million at block 21,771,507, marking the first increase since its transition to&nbsp;<a href="https://coin360.com/glossary/proof-of-stake">Proof-of-Stake</a> in 2022. The adjustment followed a validator vote in which 52% of participants supported raising the gas limit, according to Gaslimit.pics. While Ethereum’s official gas limit is now set at 32 million, expectations point to further expansion, possibly reaching 36 million in the near future.&nbsp;<figure class="image"><img alt="tweet_1886720888168702309_20250205_021444_via_10015_io_11zon.jpg" src="https://prod-coin360-cms.s3.eu-central-1.amazonaws.com/tweet_1886720888168702309_20250205_021444_via_10015_io_11zon_3ecf090db7.jpg"><figcaption>Source: X</figcaption></figure>The last adjustment occurred in late 2021, when the limit jumped from 15 million to 30 million. Industry experts highlight that increasing the gas limit improves Ethereum’s ability to process transactions, reduces congestion, and enables the execution of more complex smart contracts and&nbsp;<a href="https://coin360.com/glossary/decentralised-application">decentralized applications</a>. However, concerns remain about the higher processing requirements imposed on network nodes, which could challenge decentralization efforts.Ethereum co-founder Vitalik Buterin&nbsp;<a href="https://x.com/VitalikButerin/status/1886579901039337759">endorsed the decision</a>, emphasizing its alignment with&nbsp;<a href="https://coin360.com/glossary/layer-1">Layer 1</a> scaling initiatives. He referenced Ethereum Improvement Proposal (EIP) 4444, which aims to ensure that higher gas limits do not undermine decentralization. Buterin also proposed a governance shift that would allow Ethereum stakers to vote on blob targets, enabling automatic increases without requiring hard forks. Ethereum educator Anthony Sassano projected that gas limits could reach&nbsp;<a href="https://x.com/sassal0x/status/1874448474449789129">50 million</a> by the end of 2025, significantly boosting the network’s transaction capacity.<figure class="image"><img alt="vitalik tweet.png" src="https://prod-coin360-cms.s3.eu-central-1.amazonaws.com/vitalik_tweet_967253f018.png"><figcaption>Source: X</figcaption></figure>Ethereum's supply dynamics also saw a shift as the network turned inflationary again, marking two years and 143 days since the Merge eliminated&nbsp;<a href="https://coin360.com/glossary/proof-of-work">Proof-of-Work</a> mining rewards. The introduction of blobs in the Dencun upgrade in April 2024 slashed Layer-2 transaction fees, reducing the amount of&nbsp;<a href="https://coin360.com/coin/ethereum-eth">ETH</a> being burned. As a result, Ethereum’s daily net supply has increased by approximately&nbsp;<a href="https://ultrasound.money/?timeFrame=d1">1,570 ETH</a>.&nbsp;The transition to Proof-of-Stake had previously driven Ethereum into a deflationary phase, with supply dropping by over 450,000 ETH—valued at $1.6 billion at its peak and approximately $1.2 billion today. The Dencun upgrade introduced a mechanism in which Layer-2 transactions settle using temporary data blobs instead of traditional calldata, cutting storage requirements and lowering transaction fees. However, because blobs expire after 18 days, less ETH is being burned, shifting Ethereum’s supply model toward inflation.&nbsp;Analysts note that had Ethereum retained its Proof-of-Work model, inflation would have been significantly higher at 3.3% annually, adding 9.5 million ETH to circulation—equivalent to nearly $25 billion at today’s prices. Despite the inflationary shift, Ethereum’s transition to Proof-of-Stake remains a major efficiency breakthrough, reducing energy consumption by over 99.9%.Looking ahead, Ethereum’s upcoming Pectra hard fork, scheduled for March 2025, is expected to double Layer-2 transaction capacity by increasing the blob target from three to six. This expansion aims to enhance scalability for decentralized finance applications, blockchain-based gaming, and high-throughput smart contracts.&nbsp;Buterin suggested incorporating a governance mechanism allowing Ethereum stakers to vote on future blob capacity increases, ensuring flexibility while maintaining decentralization. The announcement of the Pectra upgrade triggered a 7% rally in Ethereum’s price, pushing it from $2,300 to over $2,800 in 24 hours.<figure class="image"><img alt="chart_11zon.jpg" src="https://prod-coin360-cms.s3.eu-central-1.amazonaws.com/chart_11zon_1d1cd069a5.jpg"></figure>Meanwhile, political interest in Ethereum has intensified, with Eric Trump posting a&nbsp;<a href="https://twitter.com/EricTrump/status/1886541132903133230">bullish tweet</a> stating, “In my opinion, it’s a great time to add $ETH.”&nbsp;<figure class="image"><img alt="eric trump tweet.png" src="https://prod-coin360-cms.s3.eu-central-1.amazonaws.com/eric_trump_tweet_8aee079116.png"><figcaption>Source: X</figcaption></figure>Although he later removed the phrase “You can thank me later,” the timing of his statement coincided with significant Ethereum transactions linked to World Liberty Finance, a Trump-affiliated entity. Within seven hours, the organization accumulated 86,000 ETH, increasing its total Ethereum holdings to $421 million, which now comprises 65% of its portfolio.&nbsp;Previously, World Liberty held $218 million worth of ETH alongside $60 million in&nbsp;<a href="https://coin360.com/coin/lido-dao-token-ldo">Lido</a> Staked ETH (<a href="https://coin360.com/coin/lido-steth-steth">stETH</a>). Data from&nbsp;<a href="https://coin360.com/coin/arkham-arkm">Arkham</a> Intelligence&nbsp;<a href="https://intel.arkm.com/explorer/entity/worldlibertyfi">revealed</a> that World Liberty moved substantial amounts of ETH and stETH to&nbsp;<a href="https://coin360.com/review/coinbase">Coinbase</a>, CoW Protocol, Lido, and&nbsp;<a href="https://coin360.com/coin/gnosis-gno">Gnosis</a>. While such transactions typically signal a sell-off, the accumulation trend suggests a long-term strategic hold.World Liberty Financial also executed over $250 million in Ethereum,&nbsp;<a href="https://coin360.com/coin/wrapped-bitcoin-wbtc">Wrapped Bitcoin</a>, and other asset transfers from its multi-signature&nbsp;<a href="https://coin360.com/glossary/crypto-wallets">wallet</a>. The organization&nbsp;<a href="https://x.com/worldlibertyfi/status/1886441070164083074">stated</a> that these movements were routine treasury reallocations for operational expenses. However, as of February 2, 2025, its treasury holdings have dwindled from over $400 million to less than $90 million.<figure class="image"><img alt="wlfi tweet.png" src="https://prod-coin360-cms.s3.eu-central-1.amazonaws.com/wlfi_tweet_b1f1d49542.png"><figcaption>Source: X</figcaption></figure>Among the largest transfers, $168 million was moved in Ethereum, alongside $64 million in Wrapped Bitcoin, with a considerable portion routed to Coinbase Prime. Market observers speculate that the involvement of Coinbase Prime could indicate&nbsp;<a href="https://coin360.com/glossary/understanding-liquidation-crypto-trading-guide">liquidation</a> activity, though World Liberty has repeatedly reassured its followers that they are not selling. This marks the second time the organization has emphasized its commitment to holding assets, following a $100 million crypto purchase in January 2025, which included $47 million in Ethereum.&nbsp;At the time, World Liberty suggested that the acquisition was meant to commemorate Donald Trump’s potential return to the U.S. presidency as the 47th president. The Trump-affiliated&nbsp;<a href="https://coin360.com/glossary/decentralised-finance">DeFi</a> platform still holds 1 billion WLFI tokens for sale at $0.05 each, with Donald Trump, Donald Jr., Eric, and Barron Trump listed as "<a href="https://coin360.com/glossary/web3-companies-projects">Web3</a> Ambassadors" for the project.This article has been refined and enhanced by ChatGPT.

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