Recently, Ethereum has performed outstandingly in the cryptocurrency market, with its price approaching $2,500. Behind this, the over 30 million US dollars in grants issued by the Ethereum Foundation and the trade agreements reached between the UK and the US have played significant roles.
In the first quarter of 2025, the Ethereum Foundation provided $32.64 million in funding to multiple Ethereum ecosystem projects. These grants cover key areas such as community and education, consensus layer, cryptography and zero-knowledge proof, developer experience and tools, execution layer, and protocol growth and support. By funding these projects, Ethereum has been strongly promoted in multiple aspects such as technological innovation and community building. In terms of technological innovation, the investment of funds has facilitated research in areas such as cryptography and zero-knowledge proof, which is expected to enhance the security and privacy of the Ethereum network. In terms of community building, funding for community and educational projects can attract more developers and users to understand and participate in the Ethereum ecosystem, thereby expanding the scale of the community.
Meanwhile, the conclusion of the Anglo-American trade agreement also provided a boost to the increase in the price of Ethereum. On May 8th local time, the United States and the United Kingdom reached a new trade agreement, partially withdrawing tariffs in specific areas and further expanding market access for both sides’ products. This agreement alleviated global trade tensions, improved the overall economic environment of the market, and enhanced the market’s risk appetite. In this positive market atmosphere, investors’ interest in risky assets has increased. Ethereum, as a promising cryptocurrency asset, has gained more favor from investors.
Judging from the market data, the price trend of Ethereum is strong. Under the influence of multiple favorable factors, the price of Ethereum has continued to rise, once soaring from $1,811 to $2,597.68, with an increase of over 40% within 72 hours, significantly outperforming other large digital currency assets such as Bitcoin. On May 9th, Ether rose by more than 28% within 24 hours and increased by over 14% intraday, approaching the $2,500 mark. As of 16:37 on May 9th, the quoted price of Ether was approximately $2,405, with a 24-hour trading volume of $19.469 billion and a market capitalization of about $219.606 billion.
In addition to the above factors, the technological upgrade of Ethereum itself should not be ignored either. The Pectra upgrade launched on May 7th has enhanced the transaction efficiency of the Ethereum Layer 2 network, reduced Gas fees, and stimulated network activities. Etherscan data shows that the Gas fee has risen to 29.269Gwei. The total value locked (TVL) of the Ethereum DeFi ecosystem reached 80 billion US dollars, hitting a new high in two years and attracting a large number of investors’ attention. On-chain data also shows that Jujing Address has been continuously increasing its holdings in the past two weeks, and the capital rate of the derivatives market has remained neutral, suggesting that institutions are making strategic moves at key support levels.
The funding from the Ethereum Foundation has injected vitality into its ecosystem development. The Anglo-American trade agreement has improved the market investment environment. Coupled with its own technological upgrades and ecosystem development, these factors have jointly pushed the price of Ethereum close to $2,500. However, the cryptocurrency market is highly uncertain and volatile. The future price trend of Ethereum is still influenced by multiple factors, and investors need to be cautious.
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