Weekly Project Updates: Vitalik Buterin Backs Ethereum’s Native Scaling, ENS Halts Development of…

Weekly Project Updates: Vitalik Buterin Backs Ethereum’s Native Scaling, ENS Halts Development of Its Proprietary Layer 2, MetaMask Wallet Launches Ondo Assets, etc

1. Vitalik: L1 Focuses on Native Scaling, L2s Should Prioritize Unique Value Over Pure Expansion link

Vitalik Buterin, co-founder of Ethereum, tweeted that the original vision of the rollup-centric roadmap is no longer applicable and a new path is needed. Reasons: the slow progress of L2 toward Stage 2; the native scaling of L1 (low fees, with a significant increase in gas limit expected in 2026). The original vision positioned L2s as “brand shards” to provide full-credit scaling, a goal that L2s are now unwilling or unable to meet (in part due to regulatory requirements), while L1 has achieved direct scaling. He suggested viewing L2s as a spectrum where users choose different levels of connectivity based on their needs; L2s should explore unique value propositions beyond scaling (such as privacy, non-EVM VMs, extreme scaling, ultra-low latency, built-in oracles, etc.), process ETH assets to at least Stage 1, and maximize interoperability. He also advocated for native rollup precompiled contracts, leveraging the built-in ZK-EVM to enable EVM verification without a security council and synchronous composability; L2s should be allowed to prove only their additional functionalities independently and clearly inform users of their security guarantees.

Karl Floersch, co-founder of Optimism, responded by welcoming the development of a modular L2 stack, while pointing out that Stage 2 is not yet ready, withdrawal windows are lengthy and cross-chain tools are insufficient, and expressed support for native rollup precompiled contracts. Steven Goldfeder, co-founder of Arbitrum, emphasized that scaling remains the core value of L2s, noting that Arbitrum and Base processed over 1000 TPS during high-activity periods, far exceeding Ethereum, and warned that if Ethereum becomes rollup-unfriendly, institutions may shift to independent L1s. Jesse Pollak, head of Base, stated that L1 scaling is beneficial to the ecosystem and that L2s cannot merely be a “cheaper Ethereum”; Base is focusing on user acquisition, application development, account abstraction, privacy and other specialized areas. Eli Ben-Sasson, CEO of StarkWare, implied that Starknet already aligns with this specialized positioning.

2. Aave DAO Proposes V3 Multichain Contraction Plan to Freeze Some Deployments and Set Revenue Thresholds link

Aave DAO has released the ARFC proposal titled “Focussing the Aave V3 Multichain Strategy — Phase 1”, put forward by ACI as a follow-up measure after the previous TEMP CHECK was passed. This proposal aims to implement contraction management on the multi-chain deployments of Aave V3. In Phase 1, it plans to freeze the Aave V3 instances on three networks: zkSync, Metis, and Soneium. The reason is that these deployments have long-term low usage rates, TVL, and revenue contributions, yet they continue to consume governance and operational resources while creating risk exposure. Meanwhile, the proposal stipulates that any future new Aave V3 deployment shall require the target chain to commit to an annual revenue floor of at least $2 million, ensuring that deployment costs, risks, and returns are aligned.

3. ENS Announces ENSv2 to Be Deployed Exclusively on Ethereum L1, Halting In-House L2 Development link

The Ethereum Name Service has announced that ENSv2 will be deployed exclusively on Ethereum L1, with the development of its self-built L2 “Namechain” discontinued. The team stated that as Ethereum L1’s scaling and registration costs have improved significantly, the rationale for originally planning to build an independent L2 is no longer sufficient. Halting Namechain’s development will not impact the functional progress of ENSv2, as the relevant contracts, ENS App, and ENS Explorer have entered the public alpha phase. The ENS team also pointed out that remaining on L1 allows leveraging Ethereum’s native security and decentralization features, while the technical experience gained from Namechain will be used to enhance ENS’s interoperability support for various L2s.

4. South Korean Financial Regulators Investigate ZK’s Sharp Volatility Over Suspected Market Manipulation link

South Korea’s Financial Supervisory Service (FSS) has launched market monitoring on the ZK token listed on Upbit, the country’s largest cryptocurrency exchange, over its abnormal price fluctuations. On February 1, ZK soared nearly 1,000% within just three hours, surging from 33 KRW to 350 KRW, before plummeting sharply shortly afterward. The financial regulator stated that it is collecting and analyzing relevant data, and will initiate a formal investigation if market manipulation is confirmed.

5. Polkadot Sees Only 19 Contracts Deployed a Week After Launching Smart Contract Functionality link

Polkadot officially launched its smart contract functionality on January 27, yet only 19 contracts were deployed one week later, a figure significantly lower than those of Ethereum and Solana during the same period. The Polkadot team stated that early on-chain data holds limited significance, emphasizing that the smart contract capabilities will gradually improve with time and subsequent integrations. Despite the slow initial development, the team remains committed to steady advancement and future market expansion.

6. Polymarket Team Member Shampoo Accuses Kalshi of Falsifying API Data Requests link

Shampoo, a team member at Polymarket, has accused Kalshi of falsifying API data requests, inflating trading volume under the Esports category to $1.7 billion — over 26 times the actual aggregated volume of approximately $63 million across all its subcategories. Additionally, Kalshi is alleged to have double-counted the CS market by referring to it as both CS:GO and CS2. Notably, Kalshi’s team had previously accused Polymarket of double-counting its own trading volume.

7. Aster CEO Responds to Market Doubts and Unveils Roadmap link

Leonard, CEO of Aster, addressed market allegations in a tweet, refuting claims that CZ/Binance controls the project or uses it for dumping and exit liquidity purposes. He emphasized that Yzi Labs’ investment has been locked up long-term and the project operates independently. He also denied engaging in competitive disruption against other DEXs. Regarding buyback data, he disclosed that 254 million tokens have been repurchased — 78 million burned, 78 million relocked for airdrop distribution, and the remaining approximately 98 million tokens scheduled for burning. Future plans include launching a privacy-focused L1 and staking features in March, expanding asset liquidity, and optimizing trading experience and UI. Season 6 will be the final trading airdrop, with slowed growth in circulating supply; the monthly 1% unlock will be suspended, and up to 80% of fees in Season 6 will be allocated to buybacks and burns.

8. BNB Chain Announces Launch of Its First Official BNB Application Proposal BAP-578 link

BNB Chain has announced the launch of BAP — 578, its first official BNB Application Proposal (BAP). This proposal introduces a new token standard for Non — Fungible Agents (NFAs), a category of AI — driven assets capable of autonomous on — chain actions. NFAs can own wallets, execute transactions, maintain operational histories, and operate across various dApps. BAP — 578 aims to help developers reach a consensus on application — layer standards such as NFT utility and AI behavior, while laying the foundation for an “agent economy” — transforming AI from a passive tool into an active on — chain entity that can directly hold assets and interact with protocols.

9. MetaMask Partners with Ondo Finance to Launch Tokenized U.S. Stocks, ETFs and Commodities link

MetaMask, a self-custodial crypto wallet developed by Consensys, and Ondo Finance, a tokenized real-world asset platform, have announced a partnership to directly bring tokenized U.S. stocks, ETFs, and commodities into MetaMask wallets via Ondo Global Markets.

10. Perp DEX’s Daily Trading Volume Hits $70 Billion for the Second Time in History, Second Only to the “1011” Flash Crash Day link

Perpetual DEXs recorded their second-highest daily trading volume on February 5, surpassing $70 billion — second only to the October 10, 2025 “1011” flash crash. Hyperliquid led with $24.7 billion, followed by Aster at $10 billion, edgeX at $8.7 billion, and Lighter at $7.5 billion.