Will Pectra Upgrade Revive ETH?
By: cryptosheadlines|2025/05/08 23:00:07
0
Share
Airdrop Is Live CaryptosHeadlines Media Has Launched Its Native Token CHT. Airdrop Is Live For Everyone, Claim Instant 5000 CHT Tokens Worth Of $50 USDT. Join the Airdrop at the official website, CryptosHeadlinesToken.com Ethereum’s supply hits a new high, increasing selling pressure and hindering price growth.The Dencun upgrade reduced fees, weakening Ethereum’s deflationary mechanism.Ethereum’s Pectra upgrade brings key improvements, offering hope for future scalability.Ethereum may be poised for a comeback as the latest on-chain data from CryptoQuant signals a rare undervaluation relative to Bitcoin, hinting at a possible accumulation phase. The analytical platform’s data indicated that ETH/BTC MVRV is low, signaling a possible entry point for buying. Historically, ETH outperformance has been preceded by such low levels. However, existing fundamentals indicate several impediments that may cap a vigorous comeback in the price of Ethereum.ETH is now extremely undervalued compared to BTC, the first time since 2019.Historically, this led to Ethereum outperforming. However, supply pressure, weak demand, and flat activity could stall a rebound. pic.twitter.com/QqU2Xh3vo9— CryptoQuant.com (@cryptoquant_com) May 8, 2025ETH’s supply now exceeds 120.7 million ETH, an all-time high. This shows a change from the post-merger deflationary perspective. The rise in supply puts pressure on selling, which could negatively impact the price of ETH. Without the powerful demand drivers, this increasing supply may worsen price woes.Impact of Dencun UpgradeThe Dencun upgrade has effectively reduced transaction fees, but it has already contributed to the supply problem. Due to the reduced fees, the ETH burn rate has been very close to zero. Given that the EIP-1559 deflationary mechanism is gas fees-based, reduced prices have undermined Ethereum’s deflationary characteristics. Such structural changes suggest a low probability of the deflationary effects returning soon.The on-chain activity on the Ethereum network has been flat since 2021. The transaction count and active addresses have experienced minimal increases. As Layer 2 networks have grown, much of this development has come at the cost of main net activity, reducing demand for Ethereum block space, shrinking fee production, and devaluing the value proposition.Related: Ethereum (ETH) Price Prediction for May 9: Can Bulls Sustain the Breakout?Meanwhile, the investor interest in ETH also declined. According to data, there has been a reduction in the staked ETH and a decrease in institutional investors’ holdings. The value staked has decreased from the peak, however, fund holdings remain downward. Such indicators showcase a lack of confidence in crypto-natives and conventional investors.Pectra Upgrade EnhancementsDespite these concerns, Ethereum’s recently implemented Pectra upgrade creates a glimmer of hope. The upgrade ensures 11 key improvements to the network, such as support for smart contract wallets and smarter validator operations. Pectra also raises the staking cap and allows withdrawals through smart contracts. These upgrades seek to make Ethereum more scalable and accessible, strengthening its long-term fundamentals.Although Ethereum is facing serious headwinds, the Pectra upgrade can create a foundation for the future. Such advancements may technically bolster network fundamentals and potentially boost interest in ETH.Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.Source link
You may also like
$75 billion in risk asset redistribution: How will SpaceX's IPO affect U.S. stocks and Bitcoin?
The SpaceX IPO is short-term "capital competition" for the cryptocurrency market, while in the medium to long term, it leans towards "narrative endorsement" for Bitcoin.
How TradeXYZ, xStocks, and Alpaca break down the SpaceX IPO into three different strategies
The value of tokenized products ultimately depends on whether the underlying structure is sound, rather than just the price displayed on the interface.
Why Is BlackRock Investing $5 Billion in the SpaceX IPO?
What is driving the massive demand for the SpaceX IPO, and why did BlackRock place a $5 billion order? Learn how the historic listing could impact SpaceX stock, Bitcoin, SPCX, and crypto markets.
Cryptocurrency market makers collectively seek change as it becomes increasingly difficult to make money
There is more and more to do.
a16z Crypto Partner: Cash flow is the moat
Most companies spend years creating network effects on traditional infrastructure. Crypto founders inherit them as starting conditions.
Citibank releases "2030 Asset Tokenization Market Outlook": 6 major trends may create a $8.2 trillion market
The tokenization of financial assets is moving from pilot projects to large-scale implementation, but this is a gradual evolution rather than a fierce revolution.
The trillion-dollar valuation test: Are the three major super IPOs a celebration for tech stocks or a nightmare for the crypto market?
Tech giants like SpaceX and OpenAI have sparked a $35 trillion super IPO wave. The "suction effect" is not enough to crash the stock and crypto markets, but the test of high valuations is just beginning.
Morning Report | Digital Asset completes $355 million financing led by a16z Crypto; Meta completes operational separation from Manus
Overview of Important Market Events on June 11
Morning News | CME Group launches Nasdaq Cryptocurrency Index futures; Asset management giant Janus Henderson strategically invests in Ethena
Overview of Important Market Events on June 10
Bitcoin Layer 2 Network Botanix: Why Did We Choose to Dissolve?
The Bitcoin L2 star project Botanix announced a gradual shutdown, with the team admitting to facing severe challenges from the failure of its business model and the prevailing trends. Users are urged to withdraw all assets before July 9, 2026.
Why did Oracle deliver the strongest financial report in history, yet its stock price fell?
Oracle's revenue for fiscal year 2026 set a record, with AI cloud orders soaring to $638 billion, but massive capital expenditures on computing power led to negative free cash flow, causing a 5% drop in after-hours stock prices.
When the P2P illicit funds from ten years ago turned into 60,000 bitcoins
The largest Bitcoin money laundering case in the UK has new developments: 16,000 Chinese victims are pursuing 61,000 seized Bitcoins across borders, and the dispute over the applicability of UK and Chinese laws will directly determine whether the victims can share in the soaring profits.
Dialogue with OmenX Founder: Why does the prediction market need an evolution from "spot" to "derivatives"?
How to reconstruct the prediction market using leverage?
Galaxy in-depth report: Is Solana still worth paying attention to?
Solana did not fall behind during the bear market. Trading enthusiasm has waned, but the network is more stable, RWA and stablecoins are expanding, and the capital foundation is much thicker than in the previous cycle. The real question is: when the speculative tide recedes, can perpetuals, predicti...
Young people in South Korea make a "final effort" in the epic bull market
The South Koreans' average of two accounts for wildly gambling in the chip bull market reflects the survival anxiety and harsh reality of countless young people trying to break through class barriers behind the nationwide stock trading frenzy for wealth.
The pricing controversy of Trade.xyz exposes the fatal weakness of Pre-IPO perpetual contracts
SpaceX's equity update has sparked controversy over on-chain liquidations. Trade.xyz refuses to reset the SPCX pricing, and the lack of a Rebase mechanism in Perp DEX has led to a significant trust test for on-chain Pre-IPO assets.
How much longer can Ethereum's last big buyer hold on?
According to Bitmine's current buying pace, the 5% target is expected to be reached next month, and at that time, there may be no further increases in holdings. So, who will fill the buying gap for Ethereum?
World Cup 2026 Coming – WEEX Celebrates with $1M Prize Pool & Michael Owen Live
The 2026 FIFA World Cup is hours away. WEEX unveils the “World Cup x Dice Rush” campaign with a 1,000,000 USDT prize pool. Plus, Michael Owen reunites with WEEX COO for an exclusive pre-match livestream. Join now!
$75 billion in risk asset redistribution: How will SpaceX's IPO affect U.S. stocks and Bitcoin?
The SpaceX IPO is short-term "capital competition" for the cryptocurrency market, while in the medium to long term, it leans towards "narrative endorsement" for Bitcoin.
How TradeXYZ, xStocks, and Alpaca break down the SpaceX IPO into three different strategies
The value of tokenized products ultimately depends on whether the underlying structure is sound, rather than just the price displayed on the interface.
Why Is BlackRock Investing $5 Billion in the SpaceX IPO?
What is driving the massive demand for the SpaceX IPO, and why did BlackRock place a $5 billion order? Learn how the historic listing could impact SpaceX stock, Bitcoin, SPCX, and crypto markets.
Cryptocurrency market makers collectively seek change as it becomes increasingly difficult to make money
There is more and more to do.
a16z Crypto Partner: Cash flow is the moat
Most companies spend years creating network effects on traditional infrastructure. Crypto founders inherit them as starting conditions.
Citibank releases "2030 Asset Tokenization Market Outlook": 6 major trends may create a $8.2 trillion market
The tokenization of financial assets is moving from pilot projects to large-scale implementation, but this is a gradual evolution rather than a fierce revolution.
Customer Support:@weikecs
Business Cooperation:@weikecs
Quant Trading & MM:bd@weex.com
VIP Program:support@weex.com
