Welcome to The Protocol, a weekly summary that highlights the most significant developments in cryptocurrency technology. I’m Margaux Nijkerk, the Ethereum Reporter.
In this edition:
- Finalization of Ethereum’s Holesky Testnet – At Last
- Starknet to Enable Settlements on Both Bitcoin and Ethereum
- From Ethereum’s Development Hub to Wall Street: Danny Ryan’s Next Venture
- Tech Giants Sony and LINE Collaborate
This article appears in the most recent edition of The Protocol, our weekly bulletin that delves into the technology underpinning cryptocurrencies, one block at a time. Sign up here to receive it in your inbox every Wednesday.
Network Updates
ETHEREUM HOLESKY TESTNET FINALIZES – AT LAST: Nearly two weeks following the Pectra upgrade, Ethereum’s Holesky testnet reached finality, overcoming a client-software configuration glitch that had blocked finality since February 24. This milestone arrives as Ethereum developers delayed their decision on when to deploy Pectra on the mainnet, thus postponing the major upgrade. — Shaurya Malwa Read more.
STARKNET TO ENABLE SETTLEMENTS ON BITCOIN AND ETHEREUM: One of the leading initiatives focused on enhancing the Ethereum network’s speed is intensifying its efforts on Bitcoin, the original blockchain. Starknet, an Ethereum layer-2 solution, has teamed up with BTC wallet Xverse to provide a “full DeFi experience for Bitcoin users.” Xverse announced that it aims to achieve a transformative moment for Bitcoin’s DeFi landscape by integrating with Starknet in the second quarter of 2025. The Starknet Foundation has released a Bitcoin Roadmap that outlines how Starknet will remain active on Ethereum while also “becoming Bitcoin’s execution layer” with aspirations to scale the network from 13 TPS to thousands. Developers are increasingly looking into how to leverage Bitcoin’s security and substantial reserves to empower the wider DeFi and blockchain ecosystem, navigating challenges related to Bitcoin’s limited programmability compared to Ethereum and other platforms. – Jamie Crawley Read more.
FROM ETHEREUM’S DEVELOPMENT HUB TO WALL STREET: DANNY RYAN’S NEXT VENTURE: Danny Ryan, who was a prominent researcher at the Ethereum Foundation, departed from the EF in September but began discussions shortly after to return as its new leader. In January, Ryan “mutually parted ways” with the foundation and, by March, revealed he would be joining Etherealize, an organization dedicated to integrating Ethereum into Wall Street. In a revealing interview with CoinDesk, Ryan explained his decision to transition, citing that Ethereum stands at a pivotal technological juncture: “Ethereum is much greater than just the EF. It’s not simply a matter of a few changes at the EF that will determine Ethereum’s future.” — Margaux Nijkerk Read more.
JAPANESE TECH GIANTS SONY AND LINE COLLABORATE: Sony’s blockchain division is inviting Japanese social media leader LINE into the Web3 arena, announcing plans to adapt several popular mini-apps for Sony’s Soeneium network. LINE boasts around 200 million active users, and this agreement will integrate four LINE-based games—Sleepagotchi, Farm Frens, Puffy Match, and Pocket Mob—onto Soeneium. This integration aims to enhance functionalities such as in-game rewards and purchases. Launched in January, Soneium seeks to transition Web2 users into the Web3 space. The blockchain operates as a layer-2 on Ethereum, utilizing Optimism’s OP Stack technology. — Margaux Nijkerk Read more.
In Other Developments
- The U.S. House of Representatives voted down an IRS regulation that would have mandated information collection from decentralized entities. This decision, backed by a bipartisan coalition including 71 Democrats, marks a significant victory for DeFi. Nik De reports.
- We might have to wait a bit longer for fresh crypto ETFs in the U.S. Various applications have been submitted for new entities, covering XRP, Solana (SOL), Dogecoin (DOGE), and Litecoin (LTC). However, a decision on these is not anticipated before the Senate confirms President Trump’s nomination of Paul Atkins to run the agency, and no hearing has yet been arranged. Helene Braun reports.
- In a major win for the crypto sector, The Office of the Comptroller of the Currency (OCC) announced that federally regulated banks may engage in various cryptocurrency activities without prior approval. Additionally, the OCC has rescinded a requirement for banks to disclose liquidity risks associated with crypto. Sam Reynolds reports.