February in Charts: SEC Drops 6 Cases, Memecoin Craze Cools and More
Febuary has been a month of significant change in the crypto industry. Major policy changes are on the horizon, and growing Bitcoin adoption globally has taken center stage. A new report this month shows that the Bitcoin network is decentralizing at an unprecedented pace.
Public companies now account for 35% of global hashrate, marking a significant shift from the current distribution. China's dominance in hashrate has decreased to 14%, and the US is making significant progress on the legal front as the Securities and Exchange Commission (SEC) dropped or paused five major legal proceedings against crypto-related entities.
Bitcoin Decentralizes: 70% Owned by Individuals
A new report this month reveals that not only is Bitcoin adoption growing, but the network has become more decentralized. The US and China's share of global hashrate have declined, with 28 countries having over 0.1% of global hashrate and only nine countries having more than 1%. Mining pools are also becoming more evenly distributed.
Governments, financial institutions, and software companies are increasingly interested in Bitcoin, with habitual large Bitcoin buyers like Michael Saylor's Strategy and El Salvador continuing their purchases. However, the majority of Bitcoin – nearly 70% – is owned by individuals.
US Lawmakers Eager for Bitcoin Reserves
US lawmakers are eager to create a national crypto reserve, but five states have rejected bills introducing or exploring Bitcoin and crypto reserves. Eleven new laws were introduced in February alone, pertaining to Bitcoin reserves or cryptocurrency investments by state governments.
Largest Crypto Hack of All Time: Lazarus Bags $1.4 Billion
On February 21, North Korean hacker group Lazarus stole $1.4 billion in Ether (ETH) from crypto exchange Bybit, setting a record for the largest crypto hack ever.
The amount stolen was larger than in all of 2024's crypto hacks combined ($1.27 billion), according to DefiLlama. Blockchain analyst ZachXBT confirmed that Lazarus was responsible through tracking the wallets used in the Bybit hack to those associated with the exploit of Phemex in January.
Memecoin Mania Begins to Die Down
The memecoin craze, which proliferated the crypto space with thousands of new tokens daily, is beginning to calm down – at least for now. The daily issuance of memecoins on Solana has dropped to a modest 40,000, the lowest since December 25, 2024.
New data shows that the lead-up to Trump's January 20 inauguration saw thousands of political-theme memecoins proliferate, sparking international interest in the phenomenon. However, concerns over ethics and casino-like character have led Vitalik Buterin and Coinbase CEO Brian Armstrong to express their disappointment in the space.