Ethereum Explosion: 38% Surge and Record Low Gas Fees!

Ethereum Explosion: 38% Surge and Record Low Gas Fees!

On May 18, 2025, reporters report that the ETH/BTC ratio has recovered 38% from five-year lows. This rally signals renewed investor confidence in Ethereum. What is particularly noteworthy is that the ratio recently fell to 0.05 BTC, the lowest level since the end of 2019, and has now stabilized again. Market data shows that similar lows in 2019 and 2020 were also followed by a rise.

This trust is strengthened by several factors. Among the most important is the Pectra upgrade, launched on May 7, 2025, which brings significant improvements to the Ethereum network. The upgrade aims to improve scalability for Layer 2 networks, reduce transaction fees, and increase staking limits for validators. It gives institutional investors new opportunities within the Ethereum ecosystem. The upgrade also simplifies validator withdrawals, reducing exit time from 13 hours to just 13 minutes.

Technical improvements and market reactions

The Pectra upgrade implemented several Ethereum Improvement Proposals (EIPs), including EIP-7251, which increases the maximum validator staking balance from 32 ETH to up to 2,048 ETH. Additionally, EIP-7002 allows programmable exits. The efficiency of Ethereum validator voting is improved by EIP-7549. These changes could help Ethereum attract even more institutional capital for ETH staking.

The market reaction to these developments is also notable. The value of ETH rose from around $1,600 to over $2,500 on May 9, while transaction overheads have now fallen to a record low of just $0.09. These low fees encourage the usage and transaction volume of Ethereum and its technologies, including DeFi and NFT activities. With a market capitalization of over $322 billion, Ethereum is now the 39th largest asset in the world.

Institutional interest and macroeconomic trends

Additionally, on-chain data reports a record high in ETH inflows since 2017 and an increase in open interest in the ETH futures market from $21.3 billion to $30.4 billion following the upgrade. Positive sentiment on social networks also shows increasing interest in Ethereum. Macroeconomic trends, such as the decline in the US dollar index and improving US-China relations, support investment in risky assets. In this context, the rise of Bitcoin is also drawing increased attention to Ethereum.

The future of the Ethereum network looks bright with upcoming updates like Fusaka and Glamsterdam in the pipeline that will focus on big data handling and gas fee optimization. This could further strengthen Ethereum's position in the competition for institutional funds and lay the foundation for a sustainably growing ecosystem. While Ethereum hosts over 58% of tokenized real-world assets and 95% of stablecoin volume, major financial institutions such as BlackRock and Deutsche Bank are also working on on-chain strategies that use Ethereum as a technological backbone.

Overall, current developments and trends show that Ethereum is on a promising path to position itself as a leading platform in the crypto world. Interest from institutional investors and technological improvements could drive this further.

The Market Periodical reports, that social media sentiment shows increasing interest in Ethereum and ongoing benefits for the Ethereum network. Loud Forbes The Pectra upgrade offers new opportunities for institutional investors and accelerates Ethereum adoption.