Ethereum Achieves Significant Valuation Gains, Reaching $2,400 Post-Pectra Upgrade Amid Improved Global Trade Climate
A confluence of Ethereum’s recent Pectra network enhancement and a softening of international trade frictions contributed to a notable appreciation in the cryptocurrency’s value on Friday morning, with gains exceeding 20%.
Ethereum’s Price Skyrockets Following Key Network Development
The price of Ethereum demonstrated a remarkable ascent, surging by 28.9% from an initial value of $1,939 to surpass the $2,400 threshold on Friday morning.
This significant upward movement occurred subsequent to the implementation of the Pectra upgrade, a development lauded by core network developers as the “most ambitious upgrade” ever undertaken by the Ethereum network.
As of the latest reports from CoinGecko, the digital asset, which holds the position of the second-largest cryptocurrency by market capitalization, is trading at $2,339, marking a 20.4% increase for the day.
Understanding the Pectra Upgrade and Its Objectives
Ethereum successfully deployed its Pectra upgrade on Wednesday.
This initiative represents the third substantial network modification since the landmark “Merge” event in 2022, which saw Ethereum transition from a proof-of-work to a proof-of-stake consensus algorithm.
An increase in the staking limits for network validators, and the provision of enhanced withdrawal flexibility for these validators.
Macroeconomic Context and Geopolitical Influences
It is relevant to note that during the three months preceding the Pectra upgrade, Ethereum had experienced a 33.3% depreciation in value, declining from $2,727 to $1,818.
President Donald Trump‘s international trade policies and an environment of increased geopolitical uncertainty.
A shift in market dynamics appeared to follow President Trump’s signing of a trade agreement with UK Prime Minister Keir Starmer on Thursday.
This event seemed to act as a catalyst for a broader market rally, with Bitcoin swiftly regaining the $100,000 valuation.
Subsequently, Ethereum also reclaimed the $2,000 price point before its accelerated climb to $2,400 on Friday, a level it had not reached since early March.
Darren Jones, the UK Treasury minister, characterized the trade deal as a “huge relief,” implying that financial markets might perceive it as an indicator of a potential easing in global trade hostilities.
Contrasting Signals: ETF Outflows Amidst Price Rally
Notwithstanding Ethereum’s impressive price surge, information from CoinGlass reveals that U.S.-based spot Ethereum Exchange Traded Funds (ETFs) have recorded net outflows for three consecutive days.
The most recent instance of positive net inflows into these investment vehicles was a week prior.
Overall Crypto Market Uptrend and Ethereum Ecosystem Performance
The wider cryptocurrency market exhibited a positive trend, expanding by 3.5% to attain a total market capitalization of $3.37 trillion, according to data from CoinGecko.
Among the top 100 digital tokens ranked by market capitalization, the most significant percentage gains were predominantly observed within projects built on the Ethereum blockchain.
The established meme coin, Pepe (PEPE), secured the leading position with a 43.3% increase over the preceding 24 hours.
Also Read: Unichain Asserts Primacy Over Ethereum for Uniswap v4 Transaction Activity
