Ethereum Researcher Proposes 100x Gas Limit Increase

Ethereum researcher Dankrad Feist has proposed EIP-9698, a plan to increase Ethereum’s gas limit by 100 times over four years through a gradual and deterministic voting schedule. If adopted, the limit would grow from 36 million to 3.6 billion units, allowing Ethereum’s base layer to handle up to 2,000 transactions per second.

Feist argued that "introducing a predictable exponential growth pattern as a client default" would align with hardware and protocol improvements while giving node operators time to adapt. The model suggests tenfold increases every two years, starting from June 2025, aiming for a controlled progression.

The proposal surfaces alongside a separate initiative by Ethereum developers to raise the gas limit to 150 million in the upcoming Fusaka upgrade. Currently, Ethereum processes around 15-30 transactions per second, lagging behind faster chains like Solana and newer competitors such as Aptos.

Critics warn that Ethereum’s heavy reliance on Layer 2 introduces complexity and centralization risks, making a stronger Layer 1 all the more crucial. While fees have stayed low lately, the push for a more scalable base layer reflects lingering concerns over Ethereum’s ability to compete in a high-throughput blockchain world.

Monero Spiked 51% After Suspected $330M Bitcoin Hack

Blockchain investigator ZachXBT flagged a suspicious transfer of 3,520 Bitcoin worth $330.7 million on April 28, suggesting a possible theft. The attacker reportedly laundered the stolen Bitcoin through six instant exchanges, converting large amounts into privacy-focused Monero (XMR). Following the swaps, Monero’s price spiked 51% intraday, reaching a high of $347 before stabilizing around $264.

ZachXBT dismissed speculation that North Korea’s Lazarus Group was responsible, indicating it was likely independent hackers. Chainalysis noted most illicit crypto activity still uses mainstream assets like Bitcoin despite Monero’s privacy appeal. Meanwhile, Monero’s market cap climbed to $5.3 billion, securing its rank as the 27th-largest cryptocurrency during the volatile trading day.

Coinbase is Launching a 4%-8% APY Bitcoin Yield Fund

Coinbase Asset Management announced the launch of its Bitcoin Yield Fund for non-USA institutional investors starting May 1. The fund aims to deliver 4% to 8% annualized returns initially by basis trading, with plans to expand into lending and options strategies. Launch partner Aspen Digital confirmed the strategy will profit from spreads between Bitcoin spot and futures markets.

Basis trading became a popular yield source in late 2024 when hedge funds aggressively shorted Bitcoin futures while buying spot ETFs. Although lucrative, the trade carries risks if Bitcoin prices surge sharply and force margin calls. Coinbase’s product is being positioned carefully to avoid the pitfalls that toppled earlier crypto yield programs like BlockFi.

Nexo Returns to U.S. After Trump Crypto Policies

Crypto lender Nexo officially announced its return to the U.S. market on April 28 after a three-year hiatus due to regulatory friction. Speaking at a press event in Bulgaria alongside Donald Trump Jr., Nexo co-founder Antoni Trenchev praised the Trump administration for creating a more favorable environment for crypto innovation. Nexo plans to offer high-yield savings, asset-backed credit lines, and trading services to U.S. clients.

Nexo initially exited the U.S. in late 2022 after regulatory deadlocks around its Earn Interest Product. With crypto lender collapses like FTX still fresh, the company later pivoted its branding to a "digital asset wealth platform." Trenchev said at the event that "America is back… and so is Nexo," though exact regulatory changes were not detailed.

Data of the Day

Grayscale’s Bitcoin Trust ETF (GBTC) continues to generate more revenue than all other U.S. spot Bitcoin ETFs combined despite shrinking assets. According to ETF Store President Nate Geraci, GBTC earns about $268.5 million annually from its 1.5% fee applied to $17.9 billion in assets under management. In contrast, all other Bitcoin ETFs combined generate $211.8 million on nearly $89 billion AUM.

Even as GBTC has seen major outflows since spot ETFs launched in January 2024, tax complications and its brand legacy have preserved its profitability. Competitors like BlackRock’s IBIT hold more assets but operate at much lower fees, around 0.25%. Grayscale recently diversified by launching the Bitcoin Mini Trust (BTC) and new income-generating Bitcoin ETFs to defend market share.

More Breaking News

• Tether’s XAUT is now backed by 7.7 tons of Swiss vault gold, reaching a $770M market cap amid soaring global demand for gold-backed cryptocurrencies.
• Lombard has partnered with Eigen Foundation to bring Bitcoin restaking to EigenLayer, unlocking new rewards for BTC holders.
• Strategy added 15,355 Bitcoin worth $1.42 billion this week, boosting its total stack to over 553,000 BTC valued at $52 billion.
• Nike faces a $5 million lawsuit accusing it of abandoning RTFKT NFT investors and illegally promoting unregistered securities.
• Trump's World Liberty Financial signed a deal with Pakistan’s Crypto Council to drive DeFi, stablecoin, and tokenization innovation.

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