The Pectra upgrade has enabled Ethereum to achieve a remarkable 42% increase in just five days, surpassing Coca-Cola and Alibaba in market capitalization.
How Ethereum Surpassed Traditional Giants
The Pectra upgrade significantly optimized Ethereum's scalability. Reduced transaction fees and improved user experience bolstered the network's position. Additionally, the ability to use cryptocurrencies other than ETH for fees broadened Ethereum's ecosystem.
Reasons for the Meteoric Rise
Institutional stakers welcomed the increase of the staking limit from 32 to 2,048 ETH, allowing large investors to deploy more flexible strategies. The increased number of data blobs per block reinforced layer 2 solutions like Rollups. As a result, on May 12, ETH's market cap exceeded $308 billion.
Future of Ethereum and Its Market Impact
Ethereum's success has drawn the attention of traditional investors who see ETH as a safer asset compared to stocks. The programmed scarcity of ETH contributes to upward price pressure. However, the key question remains: how long will this momentum last and what upgrades are on the horizon?
Ethereum's rapid rise following the Pectra upgrade raises important questions about the future of cryptocurrencies and their impact on the traditional financial system.
