Recently, Ethereum has witnessed the highly anticipated Pectra upgrade, a move that has led to significant changes in the entire crypto market landscape. Thanks to the significant enhancement of on-chain functionality, the native token of Ethereum, $ETH, has outperformed Bitcoin ($BTC) in the short term, triggering widespread discussions in the market about the resurgence of practical altcoins.
According to an post by on-chain intelligence blogger Crypto Rover on the X platform, the ETH/BTC trading pair has shown a distinct strong momentum, and the market momentum of ETH has successfully suppressed Bitcoin. Data shows (source: CoinGecko) that as of Monday this week, $ETH rose by 0.7% within 24 hours, and the increase over the past seven days was as high as 39%, with the price breaking through $2,500. The intraday decline of $BTC was 1.4%, and the weekly increase was 9.7%. The current quote is approximately $102,900.
The high market sentiment is largely attributed to the Pectra upgrade launched by Ethereum last Wednesday. As The most significant network upgrade following The Merge, Pectra not only raised the staking limit to 2,058 ETH, but also made significant optimizations in aspects such as wallet performance, user interaction experience, and Layer 2 compatibility.
The Pectra upgrade has sent out positive signals, and multiple altcoins have risen in tandem
According to Etherscan data, as of May 11th, the daily transaction volume on the Ethereum chain soared to 1.2 million, with a significant increase in user activity. Meanwhile, this risk appetite has also spread to traditional financial markets. The S&P 500 index has risen by 2.47% and is expected to break through the 5,800-point mark.
The strong performance of ETH is regarded as a signal of the recovery in demand for DeFi and scalable ecosystem assets. Tokens in the Ethereum ecosystem, such as UNI and AAVE, also rose accordingly. As of noon UTC (data from CoinMarketCap), UNI had increased by 3.8% and AAVE by 4.1%.
On-chain data further confirms this trend: the spot trading volume of ETH soared to 28.4 billion US dollars, while the trading volume of BTC, which has a market capitalization about six times that of ETH, was only 35.6 billion US dollars. In addition, Grayscale’s Ethereum Trust product (ETHE) attracted an inflow of 45 million US dollars on May 10th, indicating that institutional investors’ interest in ETH continues to rise.
As of 2 p.m. UTC, $ETH has broken through the 50-day moving average ($3,050), and from a technical perspective, the structure is becoming stronger. The Relative Strength Index (RSI) is currently 53 and still has room for decline, which indicates that ETH has not yet entered the overbought zone and still has the potential for further upward movement in the future.
Meanwhile, the total locked value (TVL) of Ethereum DeFi protocols has risen to 62.84 billion US dollars, an increase of 20% compared to last week, with a significant improvement in on-chain activity (data from DefiLlama).
In the traditional market, technology stocks performed outstandingly. NVIDIA rose by 4.34% intraday, and the Nasdaq Composite Index increased by 3.49%. Overall, risky assets showed a strong rebound trend.
As market risk appetite recovers, ETH has once again become the focus of capital attention. As long as macro sentiment remains stable and the stock market and news continue to provide positive support, the Ethereum ecosystem is expected to witness a new round of capital rotation, with high-quality projects likely to be the first to start.
Pectra upgrade poses safety risks, and a dark horse has emerged in the pre-sale market
Although the Pectra upgrade has been widely popular in the market, some security experts have pointed out that a new feature introduced in the upgrade poses a risk of being abused by attackers, which may lead to the theft of wallet assets through offline signatures. This has raised users’ concerns about asset security.
Meanwhile, a dark horse has emerged in the pre-sale market. The native utility token of $BEST has rapidly attracted millions of dollars in capital inflows, and this token supports the new generation of crypto Wallet Best Wallet. Best Wallet focuses on security and user experience, aiming to outperform competitors such as Trust Wallet and MetaMask.
Related topic:
