- Ethereum rose 20% in 24 hours after the Pectra upgrade improved network performance
- Daily trading volume hit $40.6B as more investors moved in after the price breakout
- ETH is still down 40% vs BTC despite gains, and needs more network use to rise further.
The cryptocurrency ecosystem witnessed a significant development in Ethereum. Over the past 24 hours, the token surged by 20.02%, pushing the price from $1,907 to $2,294.40, according to CoinMarketCap data. This marks Ethereum’s most important one-day gain since May 2021, driven by the recent implementation of the long-awaited Pectra upgrade, a move considered Ethereum’s biggest technical overhaul since the 2022 Merge.
Source: CoinMarketCap
The upgrade activation has immediately impacted market metrics. Ethereum’s market cap climbed to $277 billion, and its daily trading volume rose by 126.49%, reaching $40.68 billion. This was a result of an increase in investor interest and trading activity. Despite the surge, the circulating supply remains stable at 120.73 million ETH, while the volume-to-market-cap ratio stands at 14.12%, a vivid indicator of liquidity and how investors are actively engaged in the market.
Pectra Upgrade Sparks Renewed Optimism
Activated on Tuesday, the Pectra upgrade introduced a series of core improvements aimed at increasing Ethereum’s usability, performance, and scalability. These include enhancements in Layer 2 data throughput, expanded validator stake limits, and smarter wallet functionality—designed to make the network more efficient for developers and users. Research analyst Min Jung of Presto Research noted,
ETH is finally catching up after lagging behind $BTC for most of the year. The recent Pectra upgrade has helped restore some confidence, and with ETH/BTC down nearly 40% year-to-date at 0.02, it’s not surprising to see buyers stepping in at these levels.
Although Ethereum has gained ground in dollar terms, it still trails Bitcoin in comparative value. The ETH/BTC ratio, currently at 0.02, highlights Ethereum’s underperformance relative to Bitcoin, despite this not being a long-term momentum. Moreover, the token’s network activity remains weak compared to its 2021 highs, which may limit further upside in the near term without wider adoption.
Related: Ethereum Pectra Upgrade Adds Smart Accounts, Boosts L2 Speed
Institutional Activity and Market Dynamics Shift
Apart from technical upgrades, increased investor interest is another factor for the spike in Ethereum. In addition, World Liberty Financial acquired 1,587 ETH, valued at roughly $3.5 million, signaling confidence from large-scale investors. Also, the Ethereum Foundation revealed $32 million in funding for Q1 2025, which will be allocated toward ecosystem development and innovation.
With the Pectra upgrade, several active addresses for Ethereum have shown upward movement. However, the burn rate for ETH has increased, lowering the supply and raising the price momentum.
Until recently, the concepts have suggested that while the level of usage of the network in some degree has not yet returned to the level observed in 2021, structural changes and institutional support are now laying a foundation for long-term growth. This sudden surge in activity follows a general pumping of the crypto market buoyed by renewed trade talks between the U.S. and China that have brought renewed optimism across digital assets.
Is the price surge for Ethereum the beginning of a rally or just a short-term reaction to long-awaited upgrades?
