Ethereum Deploys Pectra Upgrade on Mainnet

Ethereum developers activated the long-awaited Pectra upgrade on mainnet at epoch 364032, marking the network’s most expansive upgrade since the Merge. The deployment followed successful tests on the Holesky, Sepolia, and Hoodi testnets despite earlier configuration setbacks.

The upgrade includes 11 Ethereum Improvement Proposals, notably EIP-7702, which allows wallets to act like smart contracts and supports gasless transactions. “This EIP allows wallets to support features such as letting third parties, like dApps, cover gas fees,” the official release noted.

Stakers can now consolidate validators under EIP-7251, raising the cap from 32 ETH to 2,048 ETH per node, easing operational load but raising centralization concerns. Meanwhile, EIP-7691 doubles the Layer 2 data blob throughput, potentially slashing rollup transaction costs by up to 100x.

Additional improvements coming with Pectra include EIP-7002, which shifts validator exits to the execution layer to reduce reliance on vulnerable "hot" keys, and EIP-6110, which cuts onboarding time for new validators from 12 hours to just 13 minutes.

Robinhood is Building a Blockchain for EU Stock Access

Robinhood is developing a blockchain platform to let retail investors in the EU trade U.S. stocks, two sources told Bloomberg on May 7. The company is considering using Ethereum Layer 2 Arbitrum or Solana for the new system, though no final agreement has been reached. Last month, Robinhood gained a brokerage license in Lithuania and expanded its ambition to tokenize financial assets.

CEO Vlad Tenev previously said tokenized securities would increase U.S. dominance in global markets and lower access barriers for overseas investors. This platform would mark a major shift, enabling equity exposure without traditional financial intermediaries. Robinhood follows similar initiatives from BlackRock and Franklin Templeton that aim to cut settlement costs and increase global market transparency.

World Liberty Financial Votes on USD1 Airdrop

World Liberty Financial opened a snapshot vote on whether to airdrop its USD1 stablecoin to WLFI token holders via Ethereum mainnet. The project, backed by President Donald Trump and his family, said the test would verify onchain airdrop mechanics while rewarding early users. The vote closes May 14 and is currently passing with 99.97% support.

World Liberty said it may cancel the airdrop even if approved and faces scrutiny over potential conflicts of interest involving the Trump administration. U.S. Senator Richard Blumenthal sent a formal inquiry yesterday, requesting details on how the project is handling ethics concerns. USD1 is backed by U.S. Treasury bills and fiat equivalents and was recently chosen by MGX to settle a $2B deal with Binance.

Movement Labs Fires Co-Founder Amid Token Dump Fallout

Ethereum L2, Movement Labs, fired co-founder Rushi Manche after controversy over a 66 million MOVE token dump. The firm rebranded as Move Industries, naming Torab Torabi CEO and Will Gaines President, while pledging stricter governance. The decision followed community backlash and Binance freezing $38 million tied to a suspicious market-making partner.

Manche allegedly backed a deal with Rentech despite legal warnings, sparking regulatory concerns and a governance scandal. MOVE tokens plunged 34% in a week and will be delisted from Coinbase on May 15. Move Industries said key initiatives like MoveDrop and DeFi Spring will proceed, with a community AMA planned for Friday.

Data of the Day

Bybit has restored its Bitcoin market liquidity to pre-hack levels just 30 days after a February exploit drained $1.5 billion in ETH, per Kaiko report. The attack, attributed to North Korea’s Lazarus Group, exploited Bybit’s multi-signature wallets and triggered over 350,000 user withdrawals. Bitcoin’s 1% market depth on the exchange has since fully recovered thanks to new institutional market-maker programs.

Launched one day before the hack, Bybit’s Retail Price Improvement order system allowed tighter spreads and deeper books, aiding the liquidity comeback. Kaiko said BTC liquidity rose from 0.1% to 8% in April, outperforming competitors like HTX and Bithumb. Altcoin depth also rebounded, with the top 30 tokens regaining 80% of their pre-hack liquidity.

More Breaking News

• Rep. Ritchie Torres plans a bill banning Trump and lawmakers from profiting off meme coins or stablecoins that use their names or likeness.
• Arbitrum DAO has proposed lowering its voting quorum to 4.5% as governance apathy grows and the token has dropped 71% over the past year.
• Coinbase released thousands of SEC emails, including a 2023 request from New York asking the agency to back its claim that ETH is a security.
• Bitcoin payment app Strike will launch BTC-backed loans, letting users borrow fiat without selling their crypto holdings, CEO Jack Mallers confirmed.
• Vivek Ramaswamy’s Strive is going public via reverse merger to become a Bitcoin treasury company and raise $1B in stock and debt to buy BTC.
• Revolut will bring Bitcoin Lightning Network payments to European users through Lightspark to enable faster and cheaper crypto transactions.
• South Korea’s top presidential candidate pledged to legalize spot crypto ETFs if elected, promising broader access to virtual asset investing.

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