Pectra Upgrade and ETF Developments Attract Attention

The change in price and overall context for Ethereum occurred after the Pectra upgrade launched on May 7. This is one of the most significant updates for Ethereum since the Merge in 2022. It brings various updates that enhance both the platform's usage and the staking process.

Specifically; with EIP-7702, Ethereum wallets have the capability to act as smart wallets. It enables the combination of transactions and allows others to pay the gas costs. EIP-7251 increases the maximum amount of ETH that validators can stake to 2048 ETH, and EIP-7002 offers programmable exits.

Staking efficiency has also improved. Lido, a liquid staking platform, currently has more locked value than Aave, the most popular lending protocol.

Data shows that Ethereum is gaining popularity among institutions. ETF applicants also have the option to stake in their applications. Additionally; if the proposal is accepted, Ethereum will be the first ETF to offer native yields. This would be the first crypto ETF that could lead to more investors putting money into ETH.

On the other hand, macro trends are also helping this change to take place. The decline in the US Dollar Index and the improvement in US-China relations have encouraged investments in risky assets. The recent increase in Bitcoin has brought the crypto market back into focus. With Bitcoin's dominance decreasing, Ethereum has started to attract significant attention from traders and institutions.