Blockchain sector sees technical shifts and regulatory changes

The blockchain sector is undergoing significant technical and regulatory shifts. The Ethereum Foundation has announced plans to transition its L1 hash scheme from Poseidon to SHA or BLAKE to enhance security and prepare for post-quantum cryptography, with a leanVM expected by 2027.

In the NFT market, Robinhood Chain has surpassed Ethereum in daily trading volume, reaching $3.13 million. Other notable protocol developments include Hyperliquid introducing auto-deployment for idle USDC in lending pools, Uniswap allocating creator fees to a buy-and-burn mechanism, and the ENS DAO formalizing its operational structure through the creation of the ENS Foundation.

In the broader cryptocurrency market, investor focus is shifting from market capitalization toward fundamental metrics such as transaction volume and economic sustainability. Meanwhile, security remains a critical concern following a data breach at SafePal affecting nearly 40,000 customers. In Europe, the implementation of the MiCA regulation is providing more structure but has also led to an increase in scams where bad actors impersonate authorized exchanges.