Sei Network Targets Ethereum as Pectra Upgrade Sparks Crypto Market Surge

Sei Network Considers Dropping Cosmos for Ethereum Focus

According to CoinDesk, a developer from the Sei Network has proposed ending Cosmos support to streamline the blockchain and align it more closely with Ethereum. The proposal aims to reduce complexity and infrastructure overhead, which could potentially enhance Sei's adoption and improve the developer experience. If the proposal is accepted, Sei users would only be able to send and receive Ethereum-compatible transactions, moving away from the current dual support for both EVM (Ethereum Virtual Machine) and CosmWasm.

Sei Labs’ Engineering Lead, Philip Su, stated that this transition would lead to greater adoption, an improved developer experience, and a more cohesive community. The move comes as blockchain infrastructure builders compete to attract developers, with Ethereum-based infrastructure being the most widely used in decentralized finance (DeFi) applications. Since the launch of Sei’s second version in July 2024, which introduced EVM support, deposits to DeFi apps on the network have reached an all-time high of $1 billion, making Sei the 15th largest blockchain by total value locked, according to DefiLlama data.

Barry Plunkett, co-CEO of Interchain Labs, noted that even if Sei cuts Cosmos support, it remains a Cosmos-based blockchain, allowing users and developers to benefit from features like staking and governance. The proposal will be discussed in detail during a community call hosted by Build with Sei on May 14.

Sei Network may end Cosmos support to focus on Ethereum compatibility.
Deposits to DeFi apps on Sei have reached $1 billion.
Community discussion on the proposal is scheduled for May 14.

Source: CoinDesk

“This transition will lead to greater adoption, improved developer experience, and a more cohesive community.” – Philip Su, Sei Labs’ Engineering Lead

Infobox: Sei Network is considering a major shift to Ethereum-only compatibility, citing reduced complexity and increased adoption as key benefits.

Massive Crypto Liquidations After US-UK Trade Agreement

FXStreet reports that the crypto market experienced nearly $1 billion in liquidations within 24 hours, with short liquidations accounting for $834 million. This short squeeze was triggered by Bitcoin and Ethereum rallying above $100,000 and $2,100, respectively, following President Trump's announcement of a US-UK trade agreement. The largest liquidated position occurred on Binance, wiping out a BTC/USDT trade worth $11.97 million.

The total crypto market cap climbed to $3.3 trillion for the first time since early March, with Bitcoin and Ethereum gaining 6% and 20%, respectively. Bitcoin accounted for $416 million in liquidations, while Ethereum saw $259 million in short liquidations. The rally was further fueled by retail FOMO and a sharp rebound in Ethereum after a period of negative sentiment related to the Pectra upgrade.

Asset	Liquidations	Price Milestone
Bitcoin	$416 million	$100,000+
Ethereum	$259 million	$2,100+
Total Crypto Market	$964 million (24h)	$3.3 trillion market cap

Source: FXStreet

Infobox: The US-UK trade agreement announcement triggered a crypto rally, resulting in nearly $1 billion in liquidations, with Bitcoin and Ethereum leading the surge.

Ethereum’s Pectra Upgrade Sparks Short Squeeze and Price Surge

FXEmpire highlights that Ethereum’s Pectra upgrade has triggered a massive short squeeze, with ETH breaking through consolidation much faster than anticipated. The rally has pushed Ethereum’s monthly gains to 59.4% and reduced its yearly losses from nearly 50% to 28.7%. Trading volumes in the past 24 hours have more than doubled, and nearly $880 million worth of short positions in the crypto market have been wiped out, with Ethereum accounting for $300 million of that total.

The Pectra upgrade introduces significant changes, making Ethereum more scalable, leaner, cheaper, and faster. Notably, ETH is now a deflationary token as a portion of its transaction fees are burned automatically. The upgrade also increases the number of blobs per block, improving efficiency for layer-two blockchains, and raises the amount of ETH that can be staked by validators.

Ethereum’s monthly gains: 59.4%
Yearly losses trimmed to: 28.7%
Short positions wiped out: $880 million (Ethereum: $300 million)
Key resistance levels: $2,450 (200-day EMA), $3,000

Source: FXEmpire

Infobox: The Pectra upgrade has positioned Ethereum for a potential surge beyond $3,000, with technical indicators and historical patterns supporting a bullish outlook.

Ethereum Records Highest Daily Gain in Four Years

FXStreet reports that Ethereum surged 21% on Thursday, marking its highest single-day gain since May 2021. The price reached $2,330, and the rally was likely driven by crypto native investors on the spot market, who withdrew a net of 180,000 ETH from exchanges in the past 24 hours. Over the past two weeks, more than 450,000 ETH have been withdrawn from exchanges.

Institutional activity was also noted, with Abraxas Capital withdrawing 138,511 ETH from Binance and Kraken in the past two days. Active addresses on Ethereum increased from 458,000 to 563,000 within 24 hours, and ETH’s Weighted Sentiment soared to 5.2, its highest since May 2024. The rally followed the activation of the Pectra upgrade and a leadership restructuring at the Ethereum Foundation.

Metric	Value
ETH Price (Thursday)	$2,330
Single-day Gain	21%
ETH Withdrawn (24h)	180,000 ETH
Active Addresses (24h)	+105,000 (from 458,000 to 563,000)
Weighted Sentiment	5.2

Source: FXStreet

Infobox: Ethereum’s 21% daily surge was driven by spot market investors and institutional withdrawals, with technical indicators pointing to further potential gains.

Ethereum Ecosystem Soars After Pectra Upgrade and 24/7 Futures Trading

The Motley Fool reports that Ethereum jumped more than 13% on Friday, outpacing Bitcoin and other major cryptocurrencies. Wrapped Ethereum (WETH) and Lido Staked Ether (STETH) also gained 13.4%, while the iShares Ethereum Trust (ETHA) rose 9.81% to $17.60 per share. The rally was fueled by a combination of economic optimism following US-UK trade talks, the Pectra upgrade, and the launch of 24/7 trading for Ethereum and Bitcoin futures on Coinbase.

The Pectra upgrade is a significant part of the Ethereum 2.0 redesign, enhancing security and introducing features that simplify the development of Ethereum-based applications. It also raised the staking limit per account, making Ethereum more attractive for large-scale investors. The introduction of 24/7 futures trading by Coinbase is expected to help stabilize the Ethereum and Bitcoin markets in the long run.

Ethereum price gain: 13.4% (24h)
iShares Ethereum Trust (ETHA): +9.81% to $17.60/share
Pectra upgrade boosts security and scalability
Coinbase launches 24/7 futures trading for ETH and BTC

Source: The Motley Fool

Infobox: Ethereum’s ecosystem saw broad gains after the Pectra upgrade and the launch of 24/7 futures trading, signaling renewed investor confidence.

Ethereum ETFs Surge After Pectra Network Upgrade

ETF.com reports that Ethereum ETFs have gained around 26% over the past two days following the Pectra network upgrade. The iShares Ethereum Trust (ETHA), the largest spot Ethereum ETF with $2.3 billion in assets, jumped 8.4% as of midday Friday, following an 18.2% gain the previous day. Despite these gains, the fund has dropped 43% since closing at $30.69, its highest price since spot Ethereum ETFs began trading in June.

The Pectra upgrade is intended to make Ethereum more competitive with tokens such as Solana. However, Ethereum’s price has still dropped 25% over the past year, highlighting the volatility and competitive pressures in the crypto market.