Ethereum Surges 20% After Pectra Upgrade, Largest Daily Gain in Four Years

Ethereum (ETH) surged following the implementation of the 'Pectra' upgrade, surpassing the $2200 mark with a 20% increase from the previous day. This marks the largest daily gain since May 2021.

On the 9th, the cryptocurrency-focused media outlet The Block reported, "Ethereum continued its upward trend after the Pectra network upgrade was fully implemented on the 7th," adding, "This upgrade brought structural changes improving staking efficiency, validator operations, and Layer 2 scalability, making it the largest since the 2022 Merge."

Min Jung, an analyst at Presto Research, stated, "Ethereum has underperformed compared to Bitcoin (BTC) for most of this year, but investor confidence has partially recovered with this upgrade," analyzing that "considering the ETH/BTC ratio has fallen about 40% from the beginning of the year to around 0.02, the inflow of buying pressure at this stage is a natural flow."

Nick Luck, director at LVRG Research, explained, "The Pectra upgrade has led to a buying spree across altcoins," adding, "Coupled with macroeconomic improvements, the cryptocurrency market has once again secured momentum for a rebound." He added, "As risk appetite recovers, cryptocurrencies are once again being perceived as a hedge against market uncertainty."

Meanwhile, Bitcoin rose 4% on the same day, reaching $102,526. The anticipation of Swiss trade negotiations between U.S. Treasury Secretary Scott Bessent and Chinese officials is interpreted as positively affecting risk assets overall, with expectations of eased tensions between the two countries.