The recent surge in Ethereum’s Realized Cap has caught the attention of many investors and analysts, signaling a significant influx of capital into the cryptocurrency. According to a recent post by Glassnode on X, the on-chain analytics firm, the trend in Ethereum’s Realized Cap has experienced a reversal since the implementation of the Pectra upgrade on May 7th.
The Pectra upgrade introduced several improvements to the Ethereum network, including staking enhancements and increased transaction capacity. As depicted in the chart shared by Glassnode, the arrival of the upgrade coincided with a reversal in the Realized Cap of Ethereum. The Realized Cap is a metric that calculates the total value of Ethereum by considering the last price at which each token was transacted on the blockchain.
The Realized Cap reached a peak in early February before experiencing a downtrend for the next three months. However, since the implementation of the Pectra upgrade, the Realized Cap has started to climb again. On the day of the upgrade, the indicator stood at $240.8 billion, and it has now risen to $244.6 billion, indicating a capital inflow of around $3.8 billion into Ethereum.
This increase in capital inflows has coincided with a surge in the price of Ethereum, which has risen from $1,800 to $2,500. The upward trend in the Realized Cap suggests a renewed interest from investors in Ethereum. However, despite the positive capital flow, network activity on the Ethereum blockchain has not seen a significant increase post-upgrade.
According to Glassnode, the average new and resurrected addresses on the Ethereum network have decreased compared to year-to-date values. This trend indicates that the upgrade has not attracted new or returning users but has increased engagement among existing Ethereum users. The drop in churn, which refers to previously active addresses that have become inactive, further supports this observation.
As of the latest data, Ethereum is trading around $2,500, experiencing a slight decline of over 4% in the last week. The price chart suggests a rally in the price of Ethereum over the past few weeks, showcasing the positive sentiment surrounding the cryptocurrency.
In conclusion, the increase in Ethereum’s Realized Cap and the subsequent rise in price indicate a renewed interest from investors. The Pectra upgrade has played a significant role in attracting capital to Ethereum, and it remains to be seen how this trend will evolve in the coming weeks. Stay tuned for more updates on Ethereum and its market performance.