Ethereum has taken center stage in the crypto market, leading digital asset inflows with $296.4 million last week—its strongest performance since the 2020 US elections. This surge comes on the heels of the highly anticipated Pectra upgrade, which went live on May 7, 2025, and has sparked renewed institutional interest in the world’s second-largest cryptocurrency by market cap .
What’s Driving Ethereum’s Momentum?
The Pectra upgrade is a major milestone for Ethereum, combining the Prague and Electra updates into the network’s most comprehensive overhaul since The Merge . Key improvements include:
• Enhanced staking: The maximum stake per validator has increased from 32 ETH to 2,048 ETH, making staking more efficient and potentially more rewarding for participants .
• Faster deposits: Validator activation times have dropped from around 12 hours to just 13 minutes, streamlining the process for new stakers .
• User experience upgrades: New features like account abstraction and improved wallet functionality make Ethereum more accessible and user-friendly .
These changes have not only improved the network’s technical capabilities but have also boosted confidence among institutional investors. Ethereum now represents 10.5% of total digital asset assets under management (AuM), a clear sign of its growing influence in the crypto space.
Institutional Interest and ETF Flows
The positive momentum is also reflected in the performance of Ethereum ETFs, which have seen a 15-day streak of inflows as of June 6. This trend highlights growing optimism about Ethereum’s long-term prospects, especially as the network becomes more efficient and scalable.
How Does Bitcoin Compare?
While Ethereum is attracting fresh capital, Bitcoin has experienced its second consecutive week of outflows, losing $56.5 million as investors remain cautious amid ongoing US Federal Reserve policy uncertainty. Other altcoins, such as Sui (SUI) and XRP, have seen only modest inflows or continued outflows, underscoring Ethereum’s standout performance in the current market environment.
What’s Next for Ethereum?
With $1.5 billion in inflows over the past seven weeks and a strong institutional backing, Ethereum appears well-positioned to maintain its leadership role. The recent upgrades and ETF momentum suggest that investors are preparing for Ethereum to outperform, especially if macroeconomic conditions stabilize.
As always, the market’s next moves may hinge on signals from the Federal Reserve and broader economic trends. For now, Ethereum’s robust inflows and technical advancements are setting the pace for the rest of the crypto market.
