The blockchain ecosystem continues to evolve at a rapid pace, with significant advancements across major networks like Bitcoin and Ethereum. This week’s project roundup highlights pivotal updates in network activity, scalability, NFT markets, and cross-chain infrastructure. From declining BTC on-chain activity to Ethereum’s upcoming Shanghai upgrade, here's everything you need to know about the latest developments shaping the future of decentralized technology.
Bitcoin Network Activity Hits Two-Year Low
Recent data from Glassnode reveals that Bitcoin’s on-chain transaction activity has dropped to a two-year low, with an active coin days metric of just 0.604. This indicator measures the movement of coins weighted by age, suggesting reduced spending behavior and increased holding sentiment across the network.
While lower activity often correlates with bearish market conditions, it may also signal accumulation phases as long-term investors consolidate their positions. Despite this dip, several high-profile projects are choosing to build on Bitcoin, signaling growing confidence in its long-term utility beyond just a store of value.
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ChainFaces NFT Project Migrates to Bitcoin
ChainFaces Arena, a generative art NFT project leveraging Chainlink’s Verifiable Random Function (VRF), is transitioning to the Bitcoin network via the Ordinals protocol. The migration timeline includes opening deposits on February 27, closing them on March 13, and transferring NFTs to holders’ Bitcoin wallets on March 14. This move underscores the increasing appeal of Bitcoin as a platform for digital collectibles and on-chain art.
TeraWulf Advances Nuclear-Powered Bitcoin Mining
Bitcoin mining firm TeraWulf is pioneering sustainable mining practices with its Nautilus project — a nuclear-powered mining facility expected to operate at full capacity in Q1 2025. Once live, the site will host 15,000 miners delivering up to 1.6 EH/s, representing approximately 0.54% of the total Bitcoin hashrate. By using clean nuclear energy, TeraWulf aims to reduce environmental impact while maintaining high-efficiency operations.
Regulatory and Infrastructure Trends
- Russia: The Deputy Energy Minister confirmed plans for large-scale Bitcoin mining centers in Siberia, leveraging the region’s cold climate and abundant energy.
- Germany: The Federal Fiscal Court ruled that Bitcoin held for over one year is exempt from capital gains tax, reinforcing favorable regulatory treatment for long-term holders.
- Lightning Network: Block’s TBD division launched “c=”, a new service entity focused on enhancing liquidity and routing reliability on Bitcoin’s Layer 2 solution.
Additionally, global Bitcoin ATM installations declined by 412 units in the first two months of 2025, reflecting reduced retail demand during prolonged market consolidation. However,熊市-driven pullbacks often precede renewed infrastructure growth in subsequent cycles.
Ethereum Advances Toward Shanghai Upgrade
Ethereum remains at the forefront of innovation with critical upgrades preparing for mainnet deployment. The highly anticipated Shanghai upgrade — also known as Shapella — is nearing final testing stages.
Testnet Milestones
- Sepolia: Successfully activated Shapella, confirming smooth execution of ETH withdrawal mechanics.
- Goerli: Scheduled for final testnet validation around March 21, with mainnet rollout expected in April.
- Developers emphasize that successful testnet simulations are crucial for ensuring secure unlocking of staked ETH.
Rising Network Demand
In February, Ethereum’s median gas price surged to 38 gwei — the highest level in nine months — driven largely by NFT market activity. Blur, a leading NFT marketplace, contributed significantly to gas consumption, surpassing even Coinbase in ETH burned through transactions.
NFT sales on Ethereum reached $850 million in February, marking the highest monthly volume since June 2022. Transaction count hit 2.87 million, setting a new record for single-month activity.
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Account Abstraction Gains Momentum
With the introduction of EntryPoint, Ethereum now supports account abstraction across multiple chains including Polygon, Arbitrum, Optimism, BNB Chain, and Avalanche. After undergoing rigorous security audits by OpenZeppelin, EntryPoint enables smart contract wallets to automate complex tasks such as batch transactions and gasless interactions — improving user experience without sacrificing security.
The Ethereum Foundation has also launched a grant program supporting infrastructure development around account abstraction, offering up to $50,000 per proposal. Areas of focus include webauthn integration, bundlers, block explorers, and RPC services.
Staking and Supply Dynamics
- Staking Growth: Over the past week, more than 558,000 ETH were added to the Beacon Chain, bringing total staked ETH to over 17.4 million.
- Supply Reduction: Since The Merge, circulating ETH supply has decreased by over 40,000 tokens due to deflationary pressure from fee burning.
- Profitability Analysis: According to CryptoQuant, 60% of staked ETH is currently underwater — meaning most validators would sell at a loss. This suggests limited immediate sell pressure post-Shanghai.
Bernstein analysts note that while unlocking staked ETH may initially weigh on prices due to psychological factors, long-term effects could be positive if re-staking rates increase following greater liquidity.
Innovations Across Other Major Projects
Reddit NFTs Surpass $100M Market Cap
Reddit’s Collectible Avatars on Polygon have surpassed a $102 million market cap, with over 10.6 million NFTs issued and nearly 7.2 million unique holders. This success highlights the potential of social media-driven digital ownership models.
Blur Achieves Record Performance
Last week, Blur recorded all-time highs in key metrics:
- Trading volume: 394,000 ETH (~$653 million)
- Transactions: 352,051
- New unique wallets: 54,119
- Gas spent: 8,618 ETH
The platform also announced stricter fraud controls, disqualifying addresses suspected of manipulating bids for BID token incentives in Season 2.
Layer 2 and Interoperability Progress
- Scroll: Launched zk-EVM testnet on Goerli, advancing zero-knowledge scaling solutions for Ethereum.
- Axelar VM: Introduced a cross-chain execution environment described as “Kubernetes for Web3,” enabling dApps to run seamlessly across EVM and non-EVM chains.
- ConsenSys zkEVM: Public testnet launches March 28 after processing over 300,000 private test transactions.
- Filecoin: Mainnet V18 upgrade on March 14 introduces FVM (Filecoin Virtual Machine), enabling EVM-compatible smart contracts on the decentralized storage network.
Other notable updates:
- Optimism: Goerli testnet to undergo hard fork in mid-March; Quix NFT marketplace cancels shutdown plans after new backing emerges.
- Aavegotchi: DAO votes to delist GHST from bonding curves, transitioning to free-floating tokenomics.
- EOS EVM: Final testnet launches March 27, mainnet beta April 14.
- The Sandbox: Plans to launch a DAO by year-end for community-governed metaverse decisions.
- IOST: Partners with AWS to integrate Web3 solutions into its ecosystem.
Frequently Asked Questions
Q: What does low BTC active coin days mean?
A: It indicates fewer older coins are moving, typically seen during accumulation phases or bear markets when holders prefer to retain assets rather than spend them.
Q: When will ETH withdrawals go live?
A: Following successful Goerli testnet upgrades around March 21, mainnet activation is expected in April 2025.
Q: Is account abstraction safe?
A: Yes — EntryPoint has passed audits by OpenZeppelin and operates on multiple live chains with robust security practices.
Q: Why are so many NFTs launching on Bitcoin now?
A: The Ordinals protocol allows inscription of data directly onto Bitcoin blocks, enabling NFT-like assets with strong security and permanence guarantees.
Q: Will unlocking staked ETH crash the price?
A: Unlikely in the short term — most stakers are currently unprofitable, reducing incentive to sell immediately after withdrawal access begins.
Q: How can I get testnet ETH for development?
A: Developers who deployed contracts before November 15, 2022, can claim 10 test ETH each on Goerli and Sepolia networks via community faucets.
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