Bitcoin Breaks the $100k Mark While Ethereum Soars Due to Positive Catalysts
With Bitcoin Breaks the $100k mark for the first time since February and now trading at $102,929.22, up 5.02% in the last day, the cryptocurrency market is exploding with bullish momentum. But the focus is squarely on Ethereum, which has produced an even more amazing performance, soaring by 20.25% to $2,203 in the same time frame.
According to CoinMarketCap data, the total market capitalization of cryptocurrencies has increased to $3.22 trillion, a noteworthy 3.66% growth over the last day.
The prices of digital assets seem to be rising due to several causes. Although they are not directly relevant, remarks by US President Donald Trump on Thursday about the possibility of lowering trade tariffs with China, provided that negotiations are fruitful, influenced a more generally optimistic outlook for risk assets. Markets may perceive Trump’s claim that current tariffs “can’t get any higher than 145%” and are “coming down” as a possible de-escalation of trade conflicts, which would lower economic uncertainty.
Ethereum catalysts
More basic drivers seem to be behind Ethereum’s meteoric rise. According to Crypto Times, its Total Value Locked (TVL) increased by 41% to $52.8 billion in the last 30 days. This increase in TVL highlights Ethereum’s expanding use in decentralized finance (DeFi) by signaling a large inflow of assets into dApps and protocols developed on the Ethereum network.
Ethereum’s positive argument is further supported by a 22% growth in daily transactions, which now total 1.34 million. Increased user engagement and adoption are shown by this spike in network activity. Strong institutional and customer interest in utilizing the Ethereum platform for a range of financial applications is indicated by the report’s significant project growth in important sectors like Ether.fi, Spark Protocol, and BlackRock’s BUIDL fund.
On May 7, 2025, the Pectra update was successfully deployed, which has been a major technical tailwind for Ethereum. Eleven Ethereum Improvement Proposals (EIPs) are included in this update to improve the network’s scalability and user experience. One of the most important EIPs is EIP-7251, which significantly raises the validators’ staking limit from 32 to 2,048 ETH, possibly drawing in more users and strengthening network security. Furthermore, EIP-7702 makes the network more accessible and user-friendly by allowing users can pay transaction fees with stablecoins like USDC or DAI. Investor trust in Ethereum’s long-term prospects has surely increased as a result of these improvements.
Adding to the positive momentum, Ethereum’s recent rally has also been supported by Bitcoin’s break above the psychological $100,000 level yesterday.
Interest rates unchanged
Another factor could be the Federal Reserve’s decision to maintain interest rates at Wednesday’s FOMC meeting, even as it acknowledged growing economic uncertainty. The crypto market seems to be taking the Fed’s cautious approach as a good indication, which might ease pressure on riskier assets, even though it originally caused some concern in traditional markets.
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