Summary
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Ethereum’s price surged over 20% on Friday morning, exceeding $2,400, driven by the successful implementation of the “ambitious” Pectra network upgrade and positive sentiment from easing global trade tensions.
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The Pectra upgrade, Ethereum’s third major enhancement since The Merge, aims to improve user experience, scalability, and staking flexibility through features like account abstraction and increased validator limits.
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This price rally followed a period of decline for Ethereum and was also influenced by a new US-UK trade deal, which boosted broader market confidence, leading Bitcoin to reclaim $100,000 and ETH its $2,000 milestone before its further ascent.
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Despite Ethereum’s strong price performance, U.S. spot Ethereum ETFs experienced three consecutive days of outflows, while the wider crypto market saw gains, with several Ethereum-based projects like Pepe (PEPE) and Uniswap (UNI) among the top performers.
The Ethereum network observed a substantial valuation increase on Friday morning, with its native token surging by over 20%, a movement attributed to the recent implementation of the Pectra upgrade and a perceived de-escalation in global trade conflicts.
Sharp Price Increase Following Network Enhancement
On Friday morning, Ethereum’s price demonstrated a notable upward trajectory, climbing 28.9% from $1,939 to exceed the $2,400 mark.
This appreciation followed closely on the deployment of the Pectra upgrade, an enhancement characterized by core developers as the network’s “most ambitious upgrade” to date.
Currently, the second-largest digital currency by market capitalization is trading at $2,339, indicating a 20.4% gain over the day, according to data sourced from CoinGecko.
Details of the Pectra Upgrade and Its Aims
The successful rollout of Ethereum’s Pectra upgrade occurred on Wednesday.
This marks the third major network enhancement since “The Merge” in 2022, the pivotal event where Ethereum transitioned from a proof-of-work consensus mechanism to a proof-of-stake model.
The Pectra upgrade is designed to enhance several aspects of the network, including user experience, scalability, and the flexibility of staking operations.
These improvements are being achieved through the enablement of account abstraction, modifications to data storage protocols, an increase in the staking limits for validators, and providing validators with greater flexibility in withdrawing their staked assets.
Market Context and Influence of Global Trade Developments
It is pertinent to note that in the three-month period preceding the Pectra upgrade, Ethereum‘s value had declined by 33.3%, falling from $2,727 to $1,818.
This downturn occurred amidst broader macroeconomic challenges, including concerns related to U.S. President Donald Trump‘s trade policies and heightened geopolitical instability.
However, market sentiment appeared to shift following the signing of a trade agreement between President Trump and UK Prime Minister Keir Starmer on Thursday.
Shortly thereafter, Ethereum also surpassed the $2,000 milestone before advancing to $2,400 on Friday, a valuation not seen since early March.
UK Treasury minister Darren Jones described the trade deal as a “huge relief,” suggesting that financial markets might interpret this as an initial sign of diminishing global trade war tensions.
Contrasting Trends: Ethereum ETFs See Outflows
Despite this significant rise in Ethereum’s market value, data from CoinGlass indicates that U.S. spot Ethereum Exchange Traded Funds (ETFs) have experienced outflows for three consecutive days.
The last recorded day of positive inflows into these financial products was a week ago.
Broader Crypto Market Performance and Ethereum-Based Gainers
The broader cryptocurrency market has demonstrated a positive trend, increasing by 3.5% to reach a total market capitalization of $3.37 trillion, as per CoinGecko data.
Notably, the most substantial gains among the top 100 digital tokens by market capitalization are predominantly seen in Ethereum-based projects.
The legacy meme coin Pepe (PEPE) leads this cohort, having risen by 43.3% over the past 24 hours.
It is followed by Virtuals (VIRTUAL), an AI agent launcher, which appreciated by 24.3%, and Uniswap (UNI), a decentralized exchange token, up 21.5% on the day.
Also Read: ETH Gains 20%, Biggest Gain Since 2021 as Pectra Upgrade Restores ‘Confidence’
*Disclaimer*: We at Bitcoinleef.com present you with the latest information in the crypto market. However, this information should not be regarded as financial advice and viewers should consult their financial advisors before investing.
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