Ethereum Flips Coca-Cola, Alibaba as Market Cap Soars 42% Post-Upgrade

Key Insights:

• Ethereum overtakes Coca-Cola and Alibaba in market cap after 42% price surge.
• Pectra upgrade enables gasless wallets, higher staking limits, and layer-2 scalability.
• Whale flips $21M ETH loss into $21.7M profit after months of accumulation.

Ethereum (ETH) price surged 42% in five days, reaching $2,550 on May 12 after the Pectra upgrade went live on the mainnet. The rally pushed ETH’s market capitalization above $308 billion, overtaking Coca-Cola and Alibaba, according to 8marketcap data.

Coca-Cola’s market cap stood at $303.5 billion, while Alibaba sat around $303.7 billion. Ethereum now ranks as the 39th-largest asset globally by valuation. The rapid jump follows both a technical network overhaul and a broader sentiment shift around Ethereum’s institutional potential.

Ethereum Pectra Upgrade Goes Live After Months of Testing

Initially scheduled for March, Ethereum’s Pectra upgrade was delayed after issues surfaced on the Holesky testnet in Feb. Developers moved the rollout to Sepolia in March, but the process hit more turbulence when an attacker spammed the network with empty blocks.

To ensure stability, developers launched a new testnet—“Hoodi”—before finally deploying Pectra to the Ethereum mainnet on May 7.

The upgrade introduced major changes to Ethereum’s infrastructure. It expanded validator limits from 32 ETH to 2,048 ETH, simplified staking for institutional users, and allowed external accounts (EOAs) to function like smart contracts. This change enables users to pay gas fees in non-ETH tokens.

The update also added more data blobs per block, improving layer-2 scalability and reducing rollup congestion.

Whale Accumulates $104M in ETH, Turns Loss Into Profit

On-chain tracking platform Lookonchain reported that a single wallet accumulated 50,165 ETH worth about $104.5 million between February and May. The average purchase price was $2,084.

When ETH traded near $1,600, the wallet showed a $21 million loss. However, with prices nearing $2,550, the same whale flipped that deficit into a $21.7 million profit.

The wallet’s most recent buy came on May 11, when it withdrew $4.2 million worth of ETH from Gate.io, signaling continued confidence.

ETF Inflows Rise Ahead of Potential Staking Integration

TedPillows posted on X that Ethereum ETFs had seen $17.6 million in inflows, even before integrating staking rewards.

“Imagine the surge when staking gets added,” the post read.

The inflow data highlights renewed optimism around Ethereum’s yield-bearing potential, especially after the Pectra upgrade paved the way for improved validator mechanics.

Chart watchers highlighted key technical thresholds for Ethereum following the latest weekly close.

According to Bitcoinsensus, ETH closed above the Bull Market Support Band, flipping it into support. However, the analyst noted this is a “key decision point” for Ethereum. A close below $2,000 would invalidate the bullish momentum.

ETH traded at $2,570 at press time, according to CoinGecko, up from $1,786 on May 7. The 42% increase formed a vertical breakout consistent with post-upgrade trend reversals observed in past Ethereum cycles.

Security Concerns Linger Post-Pectra

Solidity auditor Arda Usman warned that the new transaction types introduced by Pectra could allow attackers to manipulate externally owned accounts (EOAs). The vulnerability centers on offchain signed messages, which could enable fund drains without traditional onchain approval.

Ethereum core contributors acknowledged the risk but said they monitor post-upgrade activity for suspicious behavior. No major exploits have been reported so far.

Momentum Builds, But Risks Remain

Ethereum’s breakout above $2,500 marks its strongest rally since Dec. 2020. The Pectra upgrade unlocked critical infrastructure improvements, and whale accumulation shows confidence in the network’s medium-term prospects.

But volatility remains in play. Analysts remain focused on support above $2,000 and security implications of Pectra’s structural changes.

Ethereum’s status as the second-largest cryptocurrency looks secure—with its $308 billion market cap now bigger than two household global brands.

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