The Ethereum outpaces crypto market surge, leading a dramatic rally as the crypto market turns bullish, driven by macroeconomic shifts and network upgrades.
Ethereum Outpaces Market with 30 Percent Surge
The Ethereum outpaces crypto market surge, climbing over 30% in just two days, reaching above $2,400 by May 10, 2025—the strongest daily gain since 2021. Bitcoin also soared past $100,000, but Ethereum stole the spotlight during this holiday week rally. The market’s upward momentum triggered $1.2 billion in liquidations for leveraged traders, with $500 million in ETH short positions wiped out, per CoinGlass. Factors fueling this growth include macroeconomic events impacting crypto, the Pectra update boosting Ethereum, and altcoins rally alongside Ethereum.
Liquidations Highlight Market Volatility
From May 8 to 9, short position liquidations hit hard, with one trader losing $4.8 million on Hyperliquid after a 25x leveraged ETH short, according to Lookonchain. Another trader on Binance lost $12 million shorting Bitcoin. Bitfinex analysts told The Block that this rally was driven by genuine demand, not over-leveraged positions, with exchange balances dropping—indicating long-term holding. Nansen confirmed that “smart money” wallets significantly increased ETH holdings, further supporting the Ethereum outpaces crypto market surge narrative.
Macroeconomic Events Impacting Crypto Growth
Macroeconomic events impacting crypto played a key role. The U.S. resumed trade talks with China and finalized a deal with the UK, while the OCC allowed banks to offer crypto services directly. President Trump’s hints at reducing trade tariffs boosted risk-on sentiment, lifting Nasdaq and S&P 500. These developments created a favorable environment for crypto, amplifying the Ethereum outpaces crypto market surge as investors regained confidence in risk assets.
Pectra Update Boosting Ethereum Performance
The Pectra update boosting Ethereum, activated on May 7, 2025, marked the network’s biggest upgrade since its 2022 Proof-of-Stake shift, with no issues during deployment. GSR’s Carlos Guzman told Decrypt the update revived interest in ETH, while LMAX’s Joel Kruger noted the market’s readiness to reward Ethereum. Despite trading below its $4,878 peak, ETH’s rally reflects renewed sentiment, outpacing Bitcoin’s 5% gap from its January 2025 high, further driven by the Pectra update boosting Ethereum.
Altcoins Rally Alongside Ethereum Surge
Altcoins rally alongside Ethereum, with Bitcoin’s market dominance dropping from 65.4% to 63.6%, per TradingView, signaling capital flow into altcoins. Dogecoin surged 27% in a week, hitting $0.225—its highest since March—though still below its $0.73 peak. Solana, Cardano, XRP, and BNB gained 10–15% from May 8 to 10. Analysts like Amberdata’s Greg Magadini and BRN’s Valentin Fournier see this as a “relief rally,” with potential for Bitcoin to hit new highs following the altcoins rally alongside Ethereum.
