Overview

This report focuses on blockchain industry developments from February 24-28, 2025. Pump.fun is testing its own AMM, causing RAY price to plummet; Berachain’s TVL has surpassed $3.3 billion, overtaking Arbitrum and Base to become the 6th largest blockchain by TVL; Polygon’s yield generation plan has raised security concerns, with Aave suspending lending potentially causing TVL outflows exceeding $300 million; Ethereum’s Pectra upgrade encountered obstacles on the Holesky testnet, with finality failures potentially impacting mainnet deployment; Sonic’s TVL has exceeded $600 million; and MetaMask has partnered with Transak to expand fiat on/off ramp services and add support for 10 major blockchains.

Projects

Pump.fun Tests Native AMM, RAY Plummets

Pump.fun has introduced a new Swap module on its official website, sparking speculation that the platform may be preparing to launch its own native AMM (Automated Market Maker), potentially replacing its current third-party provider, Raydium. This development has triggered a sharp decline in Raydium’s native token (RAY), which plunged 22.1% in 24 hours, breaking below $3.5 USDT and currently trading at $3.4 USDT (as of Feb 24, 11:00 PM UTC+8).[1]

Raydium could face increased market competition if it loses this partnership as a key liquidity provider in the Solana ecosystem. Meanwhile, the success of Pump.fun’s native AMM will depend on its technical execution and community adoption. Regardless of the outcome, this move is expected to intensify competition among crypto trading platforms further.

Berachain TVL Surpasses $3.3 Billion, Becoming the 6th Largest Blockchain by TVL, Exceeding Arbitrum & Base

Berachain’s total value locked (TVL) has exceeded $3.3 billion, overtaking Arbitrum and Base to become the 6th largest blockchain by TVL. This surge is largely driven by its innovative Proof of Liquidity (PoL) consensus mechanism, which rewards users for providing liquidity, enhancing capital efficiency.

Berachain’s rapid ascent intensifies competition among blockchains, attracting increased capital inflows and introducing fresh DeFi innovations. Infrared Finance stands out as the largest TVL contributor among its ecosystem projects, with over $1.5 billion locked and a 21.89% increase in the past 7 days. As a key pillar of Berachain’s DeFi ecosystem, Infrared Finance’s liquid staking model bolsters network security and fuels the expansion of liquidity across the ecosystem.[2]

Polygon’s Yield Strategy Sparks Security Concerns; Aave’s Lending Halt May Drain $300M+ in TVL

Polygon PoS has proposed a yield-generation strategy utilizing over $1 billion in stablecoin reserves, raising widespread concerns among DeFi protocols over the security of cross-chain assets. In response, the Aave community has voted to suspend lending services on Polygon PoS, significantly tightening risk parameters to limit deposits and borrowing, aiming to mitigate potential security risks. Aave’s founder, Marc Zeller, has openly opposed the plan, warning that high-risk yield strategies could lead to substantial losses. As the largest decentralized application on Polygon PoS, Aave’s move could result in a TVL outflow exceeding $300 million from the network.

This development highlights DeFi’s strong emphasis on asset security while raising questions about Polygon’s competitiveness. Whether other DeFi platforms will follow Aave’s cautious approach remains uncertain, but if they do, it could further weaken Polygon’s position in the increasingly competitive blockchain landscape.[3]

Ethereum Pectra Upgrade Encounters Obstacles on Holesky Testnet, Failure to Achieve Finality Could Impact Mainnet Deployment

The Ethereum Pectra upgrade encountered issues on the Holesky testnet, failing to achieve finality as blocks did not receive sufficient validator votes within the designated timeframe. As Ethereum’s stress-testing simulator, Holesky’s failure exposed technical flaws in the upgrade, particularly related to node synchronization and the compatibility of the new staking verification logic.

This incident highlights Ethereum’s struggle with managing code complexity when bundling 11 proposals into a single upgrade, increasing the risk of unexpected interactions. Additionally, while Holesky is three times larger than the mainnet, the test did not adequately simulate extreme staking conditions, revealing gaps in validator stress testing. The failure to reach finality suggests potential risks to block consensus and transaction security on the mainnet. The development team faces a critical deadline to refine module separation strategies before the Sepolia testnet upgrade on March 5, ensuring a stable and secure Pectra deployment.[4]

Sonic TVL Surpasses $600M

Sonic’s Total Value Locked (TVL) has skyrocketed over the past month, growing 1.8x to reach $657 million. This rapid expansion highlights Sonic’s emerging influence on the DeFi and blockchain sectors as it attracts substantial capital and user engagement.

Beyond TVL growth, Sonic has also seen significant gains in stablecoin market value and platform revenue. Currently, its stablecoin market cap stands at $149 million, with daily revenue reaching $282,000 on February 26, and trading volume hitting $171 million. These figures indicate that Sonic is drawing liquidity into its platform and fostering deeper user participation in its ecosystem.[5]

Several factors contributed to Sonic’s rapid ascent. As a Layer 1 protocol designed for high-speed, efficient transactions, Sonic aligns perfectly with DeFi applications that demand high-performance networks. First, Sonic has implemented stablecoin integration, supporting trading and deposit/withdrawal operations for major stablecoins on the platform, allowing users to manage funds using low-volatility assets, and witnessing stablecoin market capitalization surpass $100 million in a short period, thereby providing users with more stable channels for fund circulation. Second, Sonic has partnered with DeFi protocols such as Lombard Finance, Ether.fi, and Rings Protocol, offering yield leverage and additional point incentives through combined staking models. This integrated approach to liquidity provision and yield strategies has effectively attracted more DeFi users and capital to the platform, further driving the development of Sonic’s ecosystem.

MetaMask Partners with Transak to Expand Fiat On/Off-Ramp Services, Adding Support for 10 Major Blockchains

MetaMask has partnered with payment provider Transak to enhance its fiat on/off-ramp services. It now supports 10 additional blockchain networks, including Arbitrum, Avalanche C-Chain, Base, BNB Chain, Optimism, and Polygon. This upgrade streamlines the conversion process between fiat and crypto, enabling more users to buy and sell digital assets directly on these chains.

By integrating with Transak, MetaMask lowers barriers to entry for DeFi, facilitating broader adoption of cryptocurrencies within the mainstream financial system, and improving liquidity across the DeFi ecosystem. While challenges such as regulatory compliance, transaction fees, and user transition habits remain, this initiative is expected to positively impact the Web3 ecosystem.[6]

Notice
Users should exercise caution when participating, be mindful of risks, and conduct thorough research before involvement. Gate.io does not guarantee the future development of projects.


References:

1. X,https://x.com/AggrNews/status/1893828729635225600
2. Defillama,https://defillama.com/chains
3. Theblock,https://www.theblock.co/post/343276/polygon-could-lose-over-300-million-in-tvl-as-aave-votes-to-halt-lending-on-pos-chain
4. Dora the Explorer,https://dora.holesky.ethpandaops.io/
5. Defillama,https://defillama.com/chain/Sonic?stables=true&tvl=false
6. Transak,https://transak.com/case-study/metamask

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Disclaimer
Investing in the cryptocurrency market involves high risk, and it is recommended that users conduct independent research and fully understand the nature of the assets and products they purchase before making any investment decisions. Gate.io is not responsible for any losses or damages caused by such investment decisions.