Ethereum skyrocketed 20% following successful implementation of its Purge phase, enhancing scalability and reducing node requirements. This technical milestone reignited altcoin season narratives, with capital rotating from Bitcoin into smart contract platforms and DeFi tokens. Derivatives data shows leveraged long positions hitting annual highs.
The rally coincides with RWA tokenization growth and Layer-2 ecosystem maturation. Projects integrating AI with smart contracts, particularly in prediction markets, attracted disproportionate gains. However, some analysts warn of overheating, noting stablecoin inflows haven’t matched 2021 bull market levels.
Sustainability depends on Ethereum maintaining its developer lead amid rising competition from Solana and Bitcoin Layer-2 solutions. Upcoming protocol upgrades focusing on parallel transaction processing could determine whether this surge marks a lasting trend or short-term speculation.
