Ethereum Trading Volume Surpasses $40 Billion After Pectra Upgrade
Ethereum (ETH) made headlines on May 7, 2025, with its daily trading volume on centralized exchanges (CEXs) surpassing $40 billion, the second-highest level this year in the stock market today. This milestone came amidst the successful implementation of the 'Pectra' upgrade, which significantly improved Ethereum's scalability and security in the ethereum price.
The Pectra upgrade, a culmination of efforts from the Ethereum community and developers, raised the validator cap from 32 to 2,048 ETH and enabled partial withdrawals for institutional stakers. This major shift from Proof of Work (PoW) to Proof of Stake (PoS) was funded largely by the community, with no single entity named as the primary contributor.
Ethereum's rally was further boosted by positive market sentiment, driven by the UK-US trade deal and a 90-day China-US ceasefire. The upgrade also included 11 Ethereum Improvement Proposals (EIPs) targeting competitors like Solana, demonstrating Ethereum's commitment to innovation in the stock market.
In other news, New Hampshire became the first U.S. state to approve a crypto reserve law, and Coinbase made waves with its $2.9 billion acquisition of Deribit. Ethereum's circulating supply has also declined by 0.1% since early May, potentially signaling a period of deflation ahead if demand remains strong in the ethereum price.
Ethereum's impressive performance, driven by the successful Pectra upgrade and positive market sentiment, has positioned it as a strong performer in the crypto market. With its circulating supply declining and institutional interest growing, Ethereum continues to solidify its place as a leading cryptocurrency in the stock market today.
