Ether’s market capitalization has seen a remarkable surge of 42% within just five days, following the successful launch of the Ethereum Pectra upgrade on its mainnet. As of May 12, Ether (ETH) has surpassed both Coca-Cola and Alibaba, now ranking as the 39th-largest asset globally by market capitalization.
Key Takeaways
- Ether’s market cap exceeded $308 billion, trading at approximately $2,550.
- Coca-Cola and Alibaba’s market caps are $303.5 billion and $303.7 billion, respectively.
- The Pectra upgrade improved scalability and user experience for Ethereum.
- Security experts have raised concerns about potential vulnerabilities post-upgrade.
Ethereum’s Pectra Upgrade
The Pectra upgrade, initially scheduled for March 2025, faced several delays due to technical challenges during testing phases. After being deployed on the Holesky testnet on February 24, the upgrade encountered issues that prevented it from finalizing on the network. Developers worked diligently to resolve these problems, leading to the eventual rollout on the Sepolia testnet on March 5, which was further complicated by an attack that resulted in the mining of empty blocks.
To ensure a smooth deployment, Ethereum core developers created a new testnet named "Hoodi" before finally launching the upgrade on the mainnet on May 7.
Key Features of the Pectra Upgrade
The Pectra upgrade introduced several significant enhancements to the Ethereum network:
- Smart Contract Functionality for EOAs: Externally owned accounts (EOAs) can now function as smart contracts, allowing them to cover gas fees and make payments using tokens other than ETH.
- Increased Validator Staking Limits: The limit for validator staking was raised from 32 ETH to 2,048 ETH, simplifying operations for larger stakers.
- Enhanced Scalability: The upgrade increased the number of data blobs per block, improving scalability for layer-2 networks.
Price Surge Following the Upgrade
Since the Pectra upgrade, Ether’s price has skyrocketed. On May 7, Ether was trading at around $1,786, but by May 12, it had reached a high of $2,550, marking a significant 42% increase in value over just five days.
Security Concerns Post-Upgrade
Despite the positive developments, the Pectra upgrade has raised alarms among cybersecurity professionals. Experts warn that the new transaction type could be exploited by attackers to control EOAs without requiring users to sign on-chain transactions. Arda Usman, a Solidity smart contract auditor, has cautioned that these vulnerabilities might allow malicious actors to drain funds through off-chain signed messages.
As Ethereum continues to evolve, the implications of the Pectra upgrade will be closely monitored by both investors and security experts alike. The recent surge in Ether’s market cap not only highlights the growing influence of cryptocurrencies but also underscores the importance of robust security measures in the rapidly changing digital landscape.
