Ethereum has once again captured the spotlight as its native cryptocurrency, Ether (ETH), soared 42% in just five days, following the deployment of the Pectra upgrade on its mainnet. As of today, May 12, 2025, ETH’s market cap has surpassed those of industry giants Coca-Cola and Alibaba, positioning it as the 39th-largest asset globally. Trading at around $2,550, Ether’s market capitalization now stands at over $308 billion, overtaking Coca-Cola’s $303.53 billion and Alibaba’s $303.72 billion, according to data from 8marketcap.
Pectra Upgrade: A Catalyst for Change
The Pectra upgrade, which finally saw the light of day on May 7 after several delays, appears to be a game-changer for the Ethereum network. Initially scheduled for March 2025, the upgrade faced setbacks due to technical glitches during its rollout on Ethereum’s Holesky and Sepolia testnets. These challenges, compounded by a malicious actor’s interference, necessitated the creation of an entirely new testnet, dubbed “Hoodi,” to ensure a smooth transition to the mainnet.
With Pectra now live, Ethereum’s capabilities have expanded significantly. One of the standout features is the transformation of externally owned accounts (EOAs) into versatile smart contracts, which can cover gas fees and payments using non-ETH tokens. This enhancement, coupled with an increase in validator staking limits from 32 to 2,048 ETH, is expected to streamline operations for larger stakers and bolster network scalability by increasing data blobs per block. As explored in our recent coverage of Ethereum bulls, traders’ confidence in ETH’s price levels has been bolstered by these developments.
Market Dynamics and Future Prospects
The Pectra upgrade’s impact on ETH’s price trajectory has been nothing short of phenomenal. On May 7, the day of the upgrade, ETH was trading at approximately $1,786. Fast forward five days, and the cryptocurrency has catapulted to $2,550. This rapid appreciation underscores the market’s optimistic reception of the upgrade’s potential to enhance Ethereum’s performance and utility.
However, the buzz around Ethereum’s newfound capabilities isn’t without its caveats. Some cybersecurity experts have raised alarms about potential vulnerabilities introduced by the upgrade. Arda Usman, a Solidity smart contract auditor, warned that the new transaction types could be exploited, allowing attackers to manipulate EOAs without user consent for on-chain transactions. The potential for off-chain signed messages to be used for draining funds has been a particular point of concern. For a deeper dive into how Ethereum’s upgrades could affect DeFi security, see our analysis on restaking and institutional traders.
A Storied Past and a Promising Future
Ethereum’s journey to its current status has been anything but linear. From its inception, the platform has navigated numerous challenges, including scaling issues and network congestion. Yet, upgrades like Pectra demonstrate Ethereum’s continuous evolution and commitment to addressing its shortcomings.
The question now is whether this upward momentum can be sustained or if the market will face corrections as it digests the implications of the Pectra upgrade. Looking ahead, the crypto community will be keenly watching Ethereum’s performance, especially in light of potential security risks and the broader market’s response.
As ETH continues to climb the ranks of global assets, its trajectory will likely influence the broader crypto market dynamics. The implications of this surge are significant, not just for investors and developers but also for the industries exploring blockchain’s transformative potential. Ethereum’s latest feat has undeniably set the stage for exciting developments in the months to come.
Source
This article is based on: Ethereum flips Coca-Cola and Alibaba as ETH gains 42% in 5 days
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
