$ETH The Pectra update, deployed on May 7, 2025, is the largest upgrade of Ethereum since 'The Merge' in 2022. It includes 11 improvement proposals aimed at:
Accelerating transaction speeds and reducing costs.
Improving the user experience, especially for cryptocurrency wallets.
Increase the staking limit from 32 ETH to 2,048 ETH per validator, helping to scale the network.
Although these improvements enhance Ethereum's performance and scalability, the initial market reaction to ETH's price has been limited. This is partly due to competition from other blockchains like Solana and BNB Chain, which offer integrated user experiences and lower transaction fees.
📈 Market performance and accumulation trends
In May 2025, ETH increased by 45%, surpassing Bitcoin's increase of 10.7% and Solana's 20.6%. This growth was driven by:
Accumulation from large investors: The amount of ETH held by large investors has increased to 123,615 coins, indicating confidence in Ethereum's long-term potential.
Reduced ETH on exchanges: The balance of ETH on exchanges has decreased to 15.15 million, indicating reduced selling pressure and an increasing holding trend.
Increased staking: The amount of ETH being staked has increased by an additional 309,000 tokens, worth approximately 813 million USD, reflecting trust in the network.
⚠️ Challenges and competition
Although Ethereum still leads in total value locked (TVL) with 53.7 billion USD, it faces stiff competition from other platforms:
Solana: Excelling in the decentralized exchange (DEX) space and launching tokens, thanks to an integrated user experience.
BNB Chain: Attracting users with low transaction fees and easier interoperability between decentralized applications (DApps).
Tron: Has made significant progress in the stablecoin market.
Ethereum needs to continue improving interoperability between layer-2 solutions and enhance user experience to maintain its leading position.
🔮 Future predictions
Analysts predict ETH could reach a price range of 3,500 to 3,700 USD by the end of 2025, with the potential to surpass 4,000 USD if accumulation trends and demand continue to rise. Increasing interest from financial institutions, especially with the launch of ETH-based ETFs, could drive ETH's value in the long term.
✅ Conclusion
The Pectra update has bolstered Ethereum's position by enhancing performance and scalability. Despite facing competition from other platforms, Ethereum remains a key player in the DeFi and DApp ecosystem. With accumulation from large investors and interest from financial institutions, ETH has strong growth potential in the future.
