Summary: Decision-makers need a real-time view of wallet risk, MEV exposure, and protocol health that matches how chains actually work in 2025. This guide translates the latest technical and regulatory shifts—Pectra (EIP-7702, EIP-7691), MEV market structure, and L2 security milestones—into concrete monitoring checklists, KPIs, and examples your team can deploy this quarter. (blog.ethereum.org)

Web3 blockchain intelligence: Monitoring Wallet Risk, MEV, and Protocol Health

For startups and enterprises, “blockchain intelligence” stopped being a nice-to-have the moment Ethereum’s May 7, 2025 Pectra upgrade changed how wallets can behave (EIP‑7702) and how rollups scale data (EIP‑7691). Those two levers alone reshaped wallet attack surfaces and L2 cost dynamics; combine them with fast‑moving sanctions guidance and a builder‑dominated MEV market, and the old dashboards don’t cut it. This post is a practical blueprint: exactly what to watch, how to measure it, and which controls deliver immediate risk reduction or margin upside. (blog.ethereum.org)

1) Wallet risk monitoring (what changed in 2025 and what to do)

Why your wallet risk model needs an update now

Pectra enabled “temporary smart accounts” via EIP‑7702, letting EOAs delegate execution logic for features like batching and gas sponsorship. It’s powerful—and immediately exploited in phishing kits using batch signatures and delegated code. Your monitoring must flag 7702 authorizations and where they point. (blog.ethereum.org)
Regulators: The U.S. Treasury removed Tornado Cash from the SDN list on Mar 21, 2025 after the 5th Circuit’s 2024 ruling constrained OFAC’s authority over immutable contracts. Sanctions screens that treat any Tornado‑adjacent flow as a hard fail are now outdated; pivot to risk‑based mixing heuristics (see below). (theblock.co)
Stablecoins dominate illicit volume: Chainalysis reports stablecoins comprised roughly 63% of illicit crypto transaction volume in 2024, a trend continuing into 2025; TRON and Ethereum are primary rails. Prioritize stablecoin heuristics and issuer freeze intelligence. (theblock.co)
Issuer freezes are real controls (and failure modes): Tether has publicized multiple 2025 freezes (including $23M tied to sanctioned Garantex; a $12.3M Tron freeze in June), while analytics firms note lag windows that some adversaries exploit to move funds pre‑blacklist. Your playbook should include freeze liaisons and a “freeze latency” KPI. (tether.io)
FATF’s June 26, 2025 targeted update: only 40/138 jurisdictions were largely compliant; enforcement of the Travel Rule still lags. If you operate globally, treat counterparty Travel Rule coverage as a risk factor in onboarding and routing. (reuters.com)

A risk-scoring blueprint that actually works post‑Pectra

Track these features per wallet and counterparty:

7702 delegation risk:
- Detect active EIP‑7702 authorizations; record delegation target code hash, deployer, and change history. Alert if target is non‑audited, upgradable, or recently created. Use chain‑bounded/nonced flags to spot weak authorizations. (blog.ethereum.org)
Mixing heuristics (post‑Tornado delisting):
- Replace binary “mixer” flags with a mixer‑pattern score: short‑cycle peel chains, common deposit collectors, split‑merge fanouts, time‑box obfuscation. Keep higher weights for mixers still sanctioned and for obfuscation linked to DPRK TTPs documented by Chainalysis. (chainalysis.com)
Stablecoin rails risk:
- Maintain issuer freeze intel (addresses with recent freezes; average freeze latency by chain). Score TRON and cross‑chain bridges higher for pig‑butchering cash‑out patterns; plan a “freeze‑assist” pathway with issuers for incident response. (cointelegraph.com)
Account abstraction hygiene:
- ERC‑4337 stack exposure (EntryPoint version, paymaster allowlists). Alert on wallets with known AA CVEs or risky EntryPoint changes (e.g., UniPass‑adjacent patterns). Track 7702 batch signature approvals showing unusual multi‑call sequences. (fireblocks.com)
Regulatory posture:
- Classify counterparties by Travel Rule capability and FATF status. Increase friction for corridors with low Travel Rule enforcement. (fatf-gafi.org)

Minimum viable KPIs

% of user EOAs with active 7702 delegations to vetted code (target >95% vetted); mean time to revoke compromised delegation (<15 minutes). (blog.ethereum.org)
% of inbound value from addresses with >10% lifetime illicit inflows (target <0.5%); median freeze latency for escalated USDT cases (target <2 hours). (chainalysis.com)
Travel Rule coverage of fiat ramps by corridor (target >90% of value via compliant VASPs). (fatf-gafi.org)

Practical example: 7702 delegation watch

Emit events on signature of EIP‑7702 authorizations; compare delegation target against your allowlist.
Auto‑reject swaps if the active delegation target differs from prior allowlisted target in the last N blocks and value > threshold.
Roll out “panic revoke” UX: a one‑click transaction that resets delegation to a no‑op contract.

Practical example: stablecoin freeze preparedness

Maintain a runbook with issuer contacts and on‑chain evidence packaging; measure time from incident to issuer acknowledgment.
When routing withdrawals, prefer rails with tighter issuer cooperation and historically lower blacklist latency for high‑risk cases. (tether.io)

2) MEV intelligence: from loss prevention to revenue line item

Where the market stands

MEV‑Boost builder auctions account for roughly 90% of Ethereum blocks; three builders produced 80% of blocks (Oct 2023–Mar 2024), underscoring concentration risk and the value of exclusive orderflow. Track builder share and relay policies. (arxiv.org)
Flashbots is shifting toward decentralized, verifiable infrastructure: BuilderNet (TEE‑backed block building with MEV refunds), SUAVE clients, and open MEV‑Share for fair orderflow auctions. Integration now is how you future‑proof against enshrined PBS changes. (flashbots.net)

What “good” looks like for orderflow quality (OFQ)

Protection rate: % of swaps routed via protected/private flow (e.g., MEV Blocker, Protect/MEV‑Share). Target 90%+ for retail UX. (docs.cow.fi)
Rebate capture: ETH (or USD) in backrun rebates per $1M routed; CoW DAO disclosed 4,079 ETH rebates during 2024 and milestone updates exceeding $170B–$241B protected volume by mid‑2025—use these as external benchmarks. (outposts.io)
Sandwich rate: fraction of swaps experiencing >X bps pre/post price impact in public mempools (should be near zero with protected flow).

Emerging best practices you can deploy this sprint

Default to a protection RPC:
- For EVM chains (ETH, then L2s as supported), point default wallet and dapp RPC to MEV‑protection endpoints (e.g., MEV Blocker). Measure inclusion latency and rebate yields; route fallbacks intelligently. (docs.cow.fi)
Adopt MEV‑Share for monetizable backruns:
- If you operate a wallet/aggregator, send private transactions to a MEV‑Share node with user‑favoring refund splits. Start with backrun‑only settings for safety and clear accounting. (docs.flashbots.net)
Monitor builder/relay diversity:
- Alert if a single builder exceeds, say, 35% of your blocks over a 7‑day window, or if non‑content‑agnostic relays rise—both correlate with censorship risk and degraded credible neutrality. (arxiv.org)

A simple analytics starter (BigQuery + public datasets)

Query MEV‑Share activity to estimate rebate opportunity for your flow:

-- Daily count and notional value of MEV-Share backruns
SELECT DATE(block_timestamp) AS d,
       COUNT(*) AS backruns,
       SUM(CAST(value AS NUMERIC)/1e18) AS eth_value
FROM `eden-data-public.flashbots.mev_share`
WHERE DATE(block_timestamp) >= DATE_SUB(CURRENT_DATE(), INTERVAL 30 DAY)
GROUP BY 1
ORDER BY 1 DESC;

Then correlate with your swaps to compute “rebate per routed dollar.” (docs.edennetwork.io)

Don’t ignore L2 MEV—your users won’t

OP Stack chains can now plug in external builders via Rollup‑Boost. Unichain deployed TEE block building with verifiable priority ordering and “Flashblocks” (≈250ms confirmations), enabling in‑rollup MEV internalization and revert protection. Ask your L2s (or your own appchain) about builder markets and fairness rules. (rollup-boost.flashbots.net)

3) Protocol health: SLOs for Ethereum and rollups in 2025

Ethereum mainnet: what to track post‑Pectra

EIP‑7691 doubled target blob throughput (avg 3→6; max 6→9) to scale L2 data; watch blob inclusion rates, fees, and node bandwidth. Track your DA costs, and maintain alerting on blob fee spikes (they’re burned like gas). (blog.ethereum.org)
EIP‑7702 changed account semantics; incorporate 7702 delegation events into ops alerts (e.g., block propagation anomalies caused by malformed delegated code). (blog.ethereum.org)
Staking concentration: Lido’s ETH staking share has been trending down near mid‑20s% in 2025—still material; client diversity and APM usage matter for resilience. Include “>1/3 operator concentration” as a red flag in risk reports. (forklog.com)

Suggested SLOs

Mainnet:
- Time‑to‑finality SLO: 2 epochs P95, alert at >4.
- Builder diversity: top builder <35% weekly share.
- Relay neutrality: OFAC‑style censoring relays <30% of your proposed blocks. (arxiv.org)

Rollups: the decentralization switch flipped

Optimism shipped permissionless fault proofs (June 10, 2024), formalizing “Stage 1” rollups; Arbitrum BoLD went live on mainnet for permissionless validation (Feb 12, 2025); Base reached Stage 1 with permissionless proofs and a 10‑member Security Council (Apr 29, 2025). Your integration and withdrawal risk assumptions must reflect these changes. (coindesk.com)

Operational checks for L2s you rely on

Fault‑proof health: proof posting cadence, challenger participation, and any security‑council overrides. Alert on “proof rail down” states. (coindesk.com)
Sequencer SLOs: unsafe head stalls and downtime. Example incidents to calibrate: OP Mainnet degraded performance in May–June 2024; Polygon zkEVM saw a sequencer outage tied to an L1 reorg. Your SLO: P99 inclusion <2s (unsafe), <15s (safe). (status.optimism.io)
Bridge risk: enforce 7‑day challenge‑period awareness for optimistic exits; monitor emergency upgrade powers vs. Stage definitions (≥7‑day windows now enforced by L2BEAT for Stage 1). (forum.l2beat.com)

Don’t ignore L1/L2 outage patterns

Solana’s Feb 6, 2024 five‑hour halt remains a useful stress test for your cross‑chain incident comms and order routing—ensure you can fail open/closed by venue and pre‑pause risky strategies automatically. (theblock.co)

Data availability layers (DA) you may be using indirectly

If your stack or vendor uses Celestia, track blob throughput, upgrade milestones (e.g., block size increase to 8MB; 6s blocks), and the “largest poster” concentration to spot correlated risk from your upstream appchains. (l2beat.com)

4) Metrics and dashboards that convert into action

Executive‑level KPIs

Wallet risk
- High‑risk counterparties (rolling 30‑day): <0.5% of inflows by value.
- EIP‑7702 clean delegation rate: >95%.
- Freeze latency (issuer acknowledgment): <2h median. (cointelegraph.com)
MEV
- Protected orderflow: >90% of swap volume via protection RPCs.
- Rebate capture: compare vs. CoW/MEV‑Blocker monthly ranges (e.g., 364 ETH rebates in Nov 2024; 4,079 ETH across 2024; protected DEX volume milestones in 2025). Aim to exceed peer benchmarks per $1M routed. (outposts.io)
- Builder/relay concentration: top builder <35% weekly; non‑agnostic relay share trending down.
Protocol health
- L2 proof liveness: no gaps >24h; Stage 1 requirements met (proofs + security council).
- Blob cost per tx: track by L2; alert on spikes beyond P90 trailing 30‑day. (blog.ethereum.org)

Suggested datasets and taps

Public: Flashbots MEV‑Share and mempool datasets; relay/builder leaderboards; L2 status pages; L2BEAT Stage metadata. (docs.edennetwork.io)
Vendor: Chainalysis or TRM for illicit labeling and DPRK TTPs; combine with your internal graph to cut false positives in legitimate privacy or OTC flows. (chainalysis.com)

5) Implementation playbook (first 90 days)

Week 0–2: Instrumentation

Add 7702/4337 parsers to your indexers; build a delegation allowlist and alerts.
Swap wallet/dapp default RPCs to protection endpoints; A/B test on 10% of flow; record inclusion latency and rebates. (docs.cow.fi)
Enable builder/relay telemetry from beacon clients; track top‑3 builders across your proposed blocks. (arxiv.org)

Week 3–6: Controls and runbooks

Push “panic revoke” and allowance reset flows into UX; train support on 7702 scams.
Build freeze liaison playbook with Tether/Circle (contacts, evidence templates, SLAs). (tether.io)
Define L2 outage SLOs and automated routing: if L2 unsafe head stalls >N seconds, route to alt venue or queue private flow. (status.optimism.io)

Week 7–12: Governance and audits

Formalize your MEV policy: user‑first rebates, no sandwich tolerance, preferred builders/relays, and proof of fairness on L2s using Rollup‑Boost or equivalent. (rollup-boost.flashbots.net)
Update sanctions policies post‑Tornado delisting—shift from strict address blacklists to behavior‑based mixing heuristics and Travel Rule corridor risk ratings. (theblock.co)
Tabletop an L2 proof‑rail failure: simulate paused withdrawals; confirm you can bridge via canonical paths with challenge windows and message proofs.

6) Brief deep dives: precise issues we’re seeing in 2025

EIP‑7702 phishing kits
- Attackers present a harmless swap UI that prompts a 7702 authorization to malicious delegation code; a batched multi‑call moves funds or sets unlimited approvals. Mitigations: require delegation targets to be audited/allowlisted; display human‑readable batch previews; alert on “new delegation + large transfer” within the same block. (blog.ethereum.org)
Stablecoin enforcement reality
- Workflows that treat freezes as “recovery complete” misstate residual risk. Latency, cross‑venue reserves, and variability across chains (e.g., TRON vs. ETH) mean freeze success ≠ asset return. Track restitution separately from freeze events in your metrics. (cointelegraph.com)
L2 security posture
- “Stage 1” is not “Stage 2”: security councils can still intervene; your withdrawal assumptions should still include challenge windows and council veto risks. Keep user messaging explicit about timelines and contingencies. (coindesk.com)

7) What 7Block Labs can deliver quickly

A hardened wallet risk engine with 7702/4337 awareness, mixer‑pattern scoring, and stablecoin freeze SLAs.
MEV program rollout: protection RPCs, MEV‑Share integration, and a CFO‑ready “rebate P&L” dashboard.
Protocol health SLOs: builder/relay diversity, L2 fault‑proof liveness, blob fee budgeting, and outage routing playbooks customized to your markets.

If you want this live in your environment within weeks, our reference architecture deploys a read‑optimized node set, Kafka streams for real‑time features, and a lakehouse that blends vendor labels with your on‑chain graph. We’ll hand over dashboards that an exec can read and an SRE can act on.

Sources (selected)

Ethereum Foundation on Pectra (EIP‑7702, EIP‑7691, activation details), Apr–May 2025. (blog.ethereum.org)
Builder market concentration and MEV‑Boost share (arXiv, 2024). (arxiv.org)
Tornado Cash delisting and litigation context (Reuters 2024 ruling; The Block 2025 delisting; legal analysis). (reuters.com)
FATF 2025 targeted update; Travel Rule progress. (reuters.com)
Chainalysis 2025 crime data; stablecoin share of illicit volume. (chainalysis.com)
MEV Blocker benchmarks and milestones (CoW DAO). (outposts.io)
Optimism fault proofs (Stage 1), Arbitrum BoLD mainnet, Base Stage 1. (coindesk.com)
Rollup‑Boost and TEE block building on Unichain. (rollup-boost.flashbots.net)
L2 incident references (OP degraded performance; Polygon zkEVM sequencer outage); Solana Feb 6, 2024 outage. (status.optimism.io)

By focusing on these precise KPIs, controls, and datasets, you’ll cut false positives, prevent the newest wallet drain patterns, and convert orderflow protection into measurable margin—while keeping an honest, metrics‑driven view of L2 security and uptime. When you need help wiring it in, 7Block Labs can deploy a production‑grade stack with your team and train operations in days, not months.