Fri 23 May 2025 ▪
4
min read ▪ by
The blockchain forgets nothing, but it sometimes bounces back with unexpected elegance. While some observers relegated Ethereum to slow stagnation, the Pectra affair has rewritten the script. 3.8 billion dollars injected into the ecosystem later, the second largest cryptocurrency by market capitalization is getting a new breath of life. Is it just a flash in the pan or the beginning of a revival? Analysis.
In brief
- Pectra revived Ethereum with 3.8 billion $ in incoming capital.
- Realized capitalization rises, but network activity remains down.
- ETH regains color, but adoption remains the real test.
The Pectra Effect: a jolt for realized capitalization
There are technical updates that go unnoticed. And then there is Pectra. Deployed on May 7, this upgrade did not just refine the network: it awakened billions of dormant dollars.
Realized capitalization — an indicator that measures an asset’s value based on the last price paid for each ETH crypto — rose from 240.8 to 244.6 billion dollars.
This jump of 3.8 billion, although modest on a global scale, reflects renewed confidence. Unlike market capitalization, often inflated by speculation, Realized Capitalization (Realized Cap) offers a truer mirror of investors’ commitment. It’s concrete capital invested at a given price, not algorithmic fluff.
This trend reversal, after three months of massive capital outflows, marks a sharp break. Technical signals become tangible: capital is flowing, and the ETH crypto is regaining strength. Is it Pectra that charmed? Or a market, tired of its wait-and-see attitude, looking for an excuse to relight the fuse? Maybe a bit of both.
ETH Crypto Price Rising, Users on Standby: A Revealing Paradox
Money is coming back. But users, they seem to remain at the door. This is one of the paradoxes highlighted by Glassnode. Since the update, active addresses — new or reactivated — have slightly decreased: -1.8% for the former, -8.4% for the latter.
A naive interpretation would see this as a sign of fatigue. But looking closer, this decline can also be read as consolidation. Less noise, but more conviction. The blockchain tourists are gone. Only the builders, the believers, those for whom ETH is not just a ticker to trade but an infrastructure to inhabit, remain.
And the numbers confirm this hypothesis: the disengagement rate drops by 8.5%. In other words, active users stay longer, interact more, get involved. It is not a gold rush, it is a slow digital colonization.
With a price flirting again with 2,500 dollars, Ethereum seems determined to become the main stage of the crypto ecosystem again. But it will all depend on what comes after Pectra. The update played its role as a catalyst, but it is not an end. It is a promise.
If Realized Capitalization continues to grow, supported by a loyal user base, ETH could well stabilize at a higher plateau. But if this capitalization increase is only the result of a passing euphoria, without concrete adoption in the background, then the awakening could be brutal. According to Arthur Hayes, Ethereum could defy all predictions.
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Fascinated by Bitcoin since 2017, Evariste has continuously researched the subject. While his initial interest was in trading, he now actively seeks to understand all advances centered on cryptocurrencies. As an editor, he strives to consistently deliver high-quality work that reflects the state of the sector as a whole.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
