Rumble, Metaplanet Boost Bitcoin Holdings, Ethereum Launches Hoodi Testnet

Last week, significant developments unfolded in the cryptocurrency sphere, with notable investments and regulatory shifts. Rumble, a Nasdaq-listed video-sharing and cloud infrastructure company, bolstered its treasury by acquiring 188 Bitcoin (BTC) for approximately $17.1 million. This move aligns with the company's strategy to diversify its financial holdings. Similarly, Japanese investment firm Metaplanet saw its stock surge by over 8% following the purchase of 162 BTC, reinforcing its commitment to expanding its crypto assets.

In the realm of Ethereum, the Ethereum Foundation announced the launch of a new testnet named Hoodi, scheduled for March 17. This development comes after encountering configuration issues on the Sepolia and Holesky testnets. Hoodi aims to finalize testing for the upcoming Prague-Electra (Pectra) upgrade, which is expected to be deployed on the mainnet approximately 30 days after successful Hoodi testing, potentially in late April. The testnet will closely mimic the Ethereum mainnet, featuring around 1 million validators and an estimated 20 million test-staked ETH distributed among various client teams and staking operators. The focus will be on testing validator exits, a crucial process for the Pectra upgrade, while other aspects will continue to be evaluated on Holesky and Sepolia.

The Pectra upgrade introduces several significant changes to the Ethereum network. Key enhancements include account abstraction (EIP-7702), allowing users to pay transaction fees with tokens like USD Coin (USDC) instead of ETH. Staking enhancements (EIP-7251) will increase the validator staking limit from 32 to 2048 ETH. Other improvements include EIP-7691, aimed at enhancing transaction scalability and reducing network congestion; EIP-7623, which enhances privacy by allowing users to hide certain transaction details; EIP-2537, optimizing contract execution and reducing gas costs; and EIP-7549, improving interoperability between different Ethereum layer 2 networks. The Ethereum Foundation's methodical approach to testing, as evidenced by the sequential deployment of testnets Mekong, Holesky, Sepolia, and now Hoodi, underscores their commitment to ensuring the stability and security of the network before implementing major changes to the mainnet. This careful preparation is essential for the successful integration of the Pectra upgrade, which promises to bring significant improvements to the Ethereum ecosystem.

On the business front, members of Donald Trump’s family have engaged in discussions to acquire a financial interest in Binance.US, the American affiliate of the world’s largest cryptocurrency exchange. This move could potentially influence the regulatory landscape and market dynamics in the cryptocurrency industry. Additionally, Coinbase CEO Brian Armstrong announced plans to hire 1,000 new employees in the U.S., citing President Trump's pro-crypto stance and policy shifts as key drivers behind the decision. This hiring spree reflects the growing optimism and investment in the cryptocurrency sector under the current administration.

In the security realm, hardware wallet provider Trezor resolved a security flaw in its Safe 3 and Safe 5 hardware wallets following a disclosure by rival Ledger. This flaw, which allowed for a bypass of some of Trezor's existing countermeasures against supply chain attacks, has been addressed to enhance the security of users' digital assets. This incident highlights the ongoing need for vigilance and continuous improvement in the security measures of cryptocurrency wallets.

Regulatory developments also made headlines last week. Finance officials in the European Union expressed concerns that President Trump’s pivot towards digital assets could impact the Eurozone’s financial and monetary stability. Additionally, crypto exchange Coinbase announced its re-entry into the Indian market after nearly two years, following its registration with India’s Financial Intelligence Unit (FIU) and receiving approval to offer crypto trading in the country. This move underscores the growing acceptance and regulation of cryptocurrencies in various regions around the world. Furthermore, the U.S. House of Representatives and the Senate voted to overturn the Biden Administration’s controversial “Broker Rule,” which compelled IRS disclosure requirements for certain crypto brokers, relieving excessive burdens on digital asset transactions. This regulatory shift is expected to foster a more favorable environment for cryptocurrency trading and investment.