Ethereum’s Comeback Story?

Ethereum's Mainstream Moment

So, is all the fuss worth paying attention to?

Sean Sanders, CFA Charterholder and CEO of Cape Town based alternative investing platform Altify, answers: “Yes — this could be Ethereum's mainstream moment, similar to how streaming services like Netflix made movies accessible on demand in every home, moving beyond physical rentals or broadcast schedules. This upgrade lays crucial groundwork for Ethereum's future growth and its role in the wider financial world.

Using crypto and decentralised applications has felt far too technical for most. Pectra and the other upgrades to come are all about smoothing out those rough edges, making Ethereum much simpler and more powerful for everyone, not just crypto enthusiasts.”

To celebrate this milestone, Altify’s offering fee-free Ethereum (ETH) investing for the next week. You can invest any amount with zero fees. Be sure to read the Terms & Conditions at the bottom of this article.

So, What Does Pectra Actually Do for You?

Blockchains are software, so you can think of this like a big operating system update for your phone that makes everything smoother, quicker, and more secure. That’s Pectra for Ethereum. It focuses on several key areas to genuinely improve how you use the network, delivering smarter, more intuitive wallets, lower transaction fees for all popular Ethereum apps, and a more powerful backbone for the entire system.

Why is This Important?

Financial products, like stocks and bonds, and real-world assets (RWAs), like property title deeds or commodities that exist in the physical world can have their ownership rights represented as a digital token on a blockchain. 

While Artificial Intelligence (AI) has been a major trend for the past few years, the rise of asset tokenisation isn't far behind.

The chart below shows how quickly tokenised real-world assets (not including stablecoins — digital tokens that are backed by regular money, often a so-called fiat currency like the US dollar) have grown. They've seen an explosive 85% year-over-year increase, reaching $15.2 billion by December 2024. If you include stablecoins the total tokenised market jumps to over $217.26 billion.

Larry Fink, the CEO of BlackRock, one of the world's largest investment firms, has spoken extensively about the future of finance and the role of tokenisation. He believes that "the next generation for markets, the next generation for securities, will be tokenisation of securities". He has also stated that "every stock or bond will be on one general ledger, and every investor will have their own identification". This vision, shared by millions of industry professionals, exists because tokens digitise and automate processes, reduce costs tied to middlemen, while offering transparency, programmability, and 24/7 transferability.

Ethereum is the foundational infrastructure for tokenisation, and that's no accident. Unlike Bitcoin, Ethereum's blockchain has "smart contracts." These are like built-in agreements that let people create, manage, and send all kinds of digital tokens. The more these tokenised assets are created and are transferred on Ethereum, the more useful and valuable the network becomes. This, in turn, boosts the value of Ethereum's own cryptocurrency, called Ether (ETH).

Its established infrastructure, widespread developer ecosystem and proven security have made it by far the market leader, commanding $134 billion or 61.75% of the tokenised real-world asset market. It also handles the vast majority of stablecoin volume, making it a significant part of the digital economy.

Ethereum is set to play a central role in how traditional finance and real-world assets merge with the digital asset world.

The Market is Taking Notice

The market has reacted positively since the Pectra upgrade was completed in early May. Over $205 million has been invested into Ethereum's listed investment products. This shows growing confidence in Ethereum's future, particularly from larger institutional investors. They see these upgrades making the network more professional and predictable.

However, ether (ETH), Ethereum's native cryptocurrency, hasn't kept pace with Bitcoin in performance. Bitcoin has led the way over the last four years, providing investors a remarkable 170% return, while Ethereum had a 6% drop over the same period.

This is all while Bitcoin has experienced minimal technological developments while Ethereum has rolled out numerous upgrades and improvements.

Bitcoin vs Ethereum

The ratio of Ethereum’s price to Bitcoin’s price (the ETH/BTC ratio) in the chart below represents the amount of Bitcoin it takes to buy 1 Ether. When the ratio rises, Ether is outperforming Bitcoin - and when it falls, Ether is underperforming. 

Ethereum’s price performance has disappointed with the ETH/BTC ratio reaching near five-year lows before Pectra, but has since seen a notable rebound. 

Ethereum's Comeback Story?

Ethereum’s up over 50% over the last month, ahead of Bitcoin and major other cryptocurrencies, suggesting renewed interest in Ethereum’s "catch-up" trade.

While Bitcoin has had its moment in the spotlight over the last few years, savvy investors look ahead. Ethereum is well-positioned to keep growing and gain market share in the coming 1, 3, 5, or even 10 years.

The stage is set for Ethereum. With foundational upgrades making the network more powerful, the rapid rise of real-world asset tokenisation, and its established dominance in tokenisation and stablecoins, Ethereum has the potential to evolve from a promising technology into the technological backbone of financial markets.

Ready to Explore Ethereum?

Altify is running a limited time, fee-free promotion on all Ethereum (ETH) investments. All you need to do is sign up and invest in Ethereum with as little as R150.

To get started and take advantage of Altify’s fee-free offer:

1. Sign Up

Download the Altify mobile app (Apple or Android) and verify your account.

1. Fund Your Account

Deposit at least R150 via bank transfer.

1. Invest

Take advantage of the Altify fee-free promotion and sell out whenever you wish. DM

Risk Disclosure

Altify SA Capital (Pty) Ltd (FSP 52727) and Altify SA DAS (Pty) Ltd (FSP 53289) are both authorised financial services providers (FSPs).

This article is provided solely for informational purposes. The opinions expressed herein do not constitute investment advice or recommendations, nor should they be regarded as such. This document does not represent an offer to buy or sell, or a solicitation of an offer to buy or sell, any of the investments mentioned. Altify operates as a brokerage service facilitating the reception and transmission of crypto asset orders, without providing investment advice or personalised recommendations. While Altify advocates for the broader accessibility of cryptocurrencies, they may not be suitable for every investor. It is important to consider your investment goals, experience level, and seek independent financial advice where necessary. Altify strongly recommends conducting comprehensive research before investing in cryptocurrencies.

Investors are solely responsible for their own investment decisions. Considering the high volatility associated with cryptocurrencies, please evaluate your financial circumstances carefully before engaging in transactions. Cryptocurrencies carry a high risk, with potential for both significant gains and losses. Investing in cryptocurrencies may lead to a total loss of capital. Past performance is not indicative of future results, and returns cannot be guaranteed as cryptocurrency values fluctuate based on market supply and demand. Do not invest more than you can afford to lose and seek professional guidance if you are unsure about the suitability of a cryptocurrency investment for your specific situation.

Please refer to the General Risk Disclosures and Crypto Risk Disclosures on Altify’s website for more information. Investments should only be undertaken by individuals who fully understand these risks.

For additional details, please visit www.altify.app.