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Ethereum’s Recent Activity Boom Tied to Dusting Attacks, Says Researcher
Ethereum’s Network Explosion Raises New Security Questions
Ethereum has recently witnessed an unprecedented surge in on-chain activity, with transaction counts and active addresses reaching record-breaking levels. At first glance, this spike appears to signal renewed adoption, rising user confidence, and growing interest across decentralized finance and Web3 applications. However, new research suggests the story behind these numbers may be far more concerning.
According to blockchain security researcher Andrey Sergeenkov, a significant portion of Ethereum’s recent growth could be artificially inflated by malicious activity, specifically a large-scale wave of address poisoning attacks. These attacks appear to be exploiting Ethereum’s newly reduced transaction fees, turning network efficiency into an unexpected vulnerability.
Record Metrics That Sparked Suspicion
In recent weeks, Ethereum’s network metrics have painted a striking picture. Active address retention reportedly surged to nearly eight million in a single month, while daily transaction counts climbed to almost 2.9 million, marking an all-time high. Even more notable was the week beginning January 12, which saw roughly 2.7 million new addresses interacting with the network—an increase of around 170% compared to typical levels.
While such numbers might normally be interpreted as bullish signals, Sergeenkov warns that they may not reflect genuine user growth. Instead, he believes much of this activity is linked to automated spam behavior driven by address poisoning campaigns operating at an unprecedented scale.
How Lower Gas Fees Changed the Economics of Attacks
The timing of this surge is not coincidental. In early December, Ethereum implemented the Fusaka network upgrade, which significantly reduced transaction costs. In the weeks following the upgrade, average network fees dropped by more than 60%.
While lower fees are generally positive for users and developers, they also reduced the cost of malicious activity. Sergeenkov argues that address poisoning has become far more attractive for attackers because it is now cheap enough to execute mass transactions across millions of wallets without significant capital.
In his view, the ability to scale network infrastructure must be matched by equal attention to user security. Without proper safeguards, efficiency gains can unintentionally empower bad actors.
Understanding Address Poisoning on Ethereum
Address poisoning is a subtle but highly effective scam technique. It involves sending tiny transactions—often worth less than a dollar—from wallet addresses that closely resemble legitimate ones. These transactions appear in a victim’s transaction history, increasing the risk that the user will later copy and reuse the fraudulent address by mistake.
The attack typically begins with scammers sending small amounts of stablecoins to what are known as dust distributor wallets. These wallets then fan out microscopic transactions to massive numbers of addresses, embedding deceptive entries into transaction histories across the network.
Sergeenkov identified these distributor wallets by analyzing wallets that received very small stablecoin amounts as their first-ever transaction, then filtering for addresses that went on to send transactions to more than 10,000 recipients. This pattern strongly suggests automated poisoning behavior rather than organic usage.
Millions Targeted and Hundreds of Thousands Lost
The scale of these attacks is staggering. Some of the most active dust distributor addresses were found to have sent transactions to over 400,000 different recipients. Collectively, these campaigns have already resulted in losses exceeding $740,000, affecting at least 116 confirmed victims.
While this figure may seem modest relative to Ethereum’s total market size, the real concern lies in the trajectory. As long as transaction fees remain low and user awareness remains limited, the potential for further losses continues to grow.
These attacks do not rely on smart contract exploits or protocol flaws. Instead, they exploit human behavior, making them particularly difficult to prevent through technical upgrades alone.
What This Means for Ethereum Users and the Market
The findings highlight a critical challenge for Ethereum as it scales. Rising activity metrics alone are no longer a reliable indicator of healthy network growth. Without deeper analysis, spam-driven transactions can distort perceptions of adoption and usage.
For everyday users, this serves as a reminder to verify wallet addresses carefully and avoid copying addresses directly from transaction histories without double-checking them. For platforms and exchanges, it reinforces the importance of strong security education and clear transaction interfaces.
The Role of Secure Trading Platforms Like BYDFi
As blockchain threats evolve, the choice of trading and asset management platforms becomes increasingly important. Platforms like BYDFi play a key role in protecting users by offering secure environments, clear transaction workflows, and educational resources that help traders avoid common on-chain scams.
BYDFi’s focus on user safety, transparent asset handling, and risk awareness makes it a valuable option for traders navigating increasingly complex blockchain ecosystems. While no platform can eliminate on-chain risks entirely, using reputable exchanges with strong security standards can significantly reduce exposure to threats like address poisoning.
Looking Ahead: Security Must Match Scalability
Ethereum’s continued growth is undeniable, but this episode underscores an important reality. Network scalability and lower fees must go hand in hand with enhanced user protections. Without parallel investment in security awareness and tooling, efficiency improvements can unintentionally amplify malicious behavior.
As researchers continue to monitor on-chain patterns, one thing is clear: the future of Ethereum depends not only on faster and cheaper transactions, but also on ensuring that users can interact with the network safely and confidently in an increasingly hostile digital environment.
2026-01-26 · 17 hours ago0 09Pendle Revamps Governance Token to Address Low User Adoption
Pendle Unveils a New Governance Era as sPENDLE Replaces vePENDLE
Decentralized finance protocol Pendle is entering a new phase of its evolution after announcing a major overhaul of its governance model, replacing the long-standing vePENDLE token with a new, more flexible asset called sPENDLE. The change comes as the team acknowledges that, despite Pendle’s impressive growth, its previous governance design failed to achieve broad user participation.
The transition marks one of the most significant tokenomic updates in Pendle’s history and reflects a wider trend across DeFi: simplifying governance, improving liquidity, and lowering barriers for everyday users.
Why Pendle Is Moving Away From vePENDLE
Pendle’s original governance system was built around vePENDLE, a vote-escrow token that required users to lock their PENDLE for long periods of time. While the model was intended to encourage long-term alignment with the protocol, it ultimately created friction for most participants.
According to the Pendle team, long lock-up durations, non-transferability, and limited interoperability made vePENDLE unattractive to a large segment of users. Governance participation also required weekly engagement and a deep understanding of DeFi mechanics, which concentrated rewards among a small group of advanced participants.
This complexity became increasingly misaligned with Pendle’s expanding user base and growing total value locked, prompting the team to rethink how governance and incentives should function.
Introducing sPENDLE: A More Liquid Governance Token
The newly announced sPENDLE token is designed to address these shortcomings by introducing liquidity and flexibility into Pendle’s governance framework. Unlike vePENDLE, sPENDLE is a liquid staking and governance token that allows holders to exit their position with a 14-day withdrawal period, or immediately by paying a small fee.
This shift removes the psychological and financial burden of long-term lock-ups, making governance participation more accessible to both retail users and institutions. The Pendle team believes that lowering exit friction will significantly improve adoption and engagement across the ecosystem.
Staking for sPENDLE is set to go live shortly, while new vePENDLE locks will be paused ahead of a snapshot that will facilitate the transition.
Interoperability and DeFi Integration Take Center Stage
One of the most critical limitations of vePENDLE was its lack of interoperability. Because the token was non-transferable, it could not be used across other DeFi platforms, limiting its utility beyond Pendle’s own ecosystem.
sPENDLE changes that dynamic entirely. The new token is designed to integrate with multiple DeFi protocols, opening the door to use cases such as restaking, composable yield strategies, and broader liquidity participation. This aligns Pendle with a growing movement toward modular DeFi, where assets are expected to function seamlessly across platforms.
For traders and investors who already operate across multiple ecosystems, this change significantly increases the attractiveness of holding PENDLE.
A Simpler Governance Model Focused on Real Decisions
Pendle is also redesigning how governance itself works. Under the new structure, token holders will no longer be required to participate in weekly votes to remain eligible for rewards. Instead, governance participation will focus only on major protocol decisions, known as Pendle Protocol Proposals.
When no critical proposal is active, holders will automatically remain eligible for governance rewards without taking any action. This approach aims to strike a balance between meaningful decentralization and user convenience, ensuring that governance rewards are no longer limited to a small, highly technical minority.
Revenue Buybacks and Long-Term Incentives
To further strengthen the new model, Pendle plans to allocate up to 80% of its protocol revenue toward PENDLE token buybacks, which will then be distributed as governance rewards. This mechanism directly links protocol performance to token holder incentives, reinforcing long-term alignment without forcing users into rigid lock-ups.
With Pendle reportedly generating tens of millions of dollars in revenue, this buyback-driven reward system could become a powerful driver of sustainable value for holders under the new sPENDLE framework.
Pendle’s Position in the DeFi Market
Despite its governance challenges, Pendle has grown into one of the largest DeFi platforms by total value locked, ranking among the top protocols in the sector with billions of dollars secured on-chain. The governance revamp suggests that Pendle is now prioritizing scalability of participation, not just scalability of capital.
If successful, the sPENDLE transition could serve as a blueprint for other DeFi protocols struggling with low governance engagement.
Tracking PENDLE and DeFi Tokens on BYDFi
As governance innovation continues across DeFi, many traders prefer using flexible and advanced trading platforms to gain exposure to tokens like PENDLE. Platforms such as BYDFi provide access to a wide range of crypto assets, market analysis tools, and derivatives trading options, making them a practical choice for users looking to trade or hedge DeFi-related tokens.
For investors monitoring Pendle’s transition and broader DeFi governance trends, BYDFi offers a streamlined environment to track price movements, manage risk, and explore emerging opportunities without the complexity often associated with decentralized interfaces.
A Strategic Reset With Broader Implications
Pendle’s move from vePENDLE to sPENDLE is more than a technical upgrade—it is a strategic reset that acknowledges the realities of user behavior in modern DeFi. By prioritizing liquidity, interoperability, and simplified governance, Pendle is positioning itself for its next stage of growth.
Whether sPENDLE delivers the adoption boost Pendle expects will become clearer in the months ahead. However, one thing is certain: governance models that prioritize usability and flexibility are quickly becoming the standard in decentralized finance.
2026-01-26 · 17 hours ago0 08
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