Weekly Update: 16th of May
What happened between the 9th and the 16th of May?
- Ethereum surged more than 50% following the Pectra upgrade, rising interest in tokenization, and growing inflows into Ethereum ETFs. Read more
- Etoro and Galaxy Digital are going public, signaling renewed confidence in crypto amid rising institutional interest and regulatory clarity. Read more
- Macroeconomic conditions are improving as the US and China temporarily lower trade tariffs and inflation slows more than expected. Read more
- Citi Bank projects the stablecoin market could grow to $3.7 trillion by 2030, driven by increased use beyond crypto trading and stronger regulation. Read more
Ethereum surges over 50% in just a few days
Between May 8 and 13, Ethereum (ETH) recorded a remarkable rally of more than 50%, pushing its market capitalization close to $300 billion. This rise came shortly after the successful “Pectra” upgrade, which enhances the network’s scalability and usability. In addition, interest is rising in tokenization and decentralized finance (DeFi), areas where Ethereum remains dominant. Notably, Ethereum ETFs are also seeing renewed inflows, indicating fresh (institutional) confidence. These developments mark a reversal of Ethereum’s downward trend relative to Bitcoin, which had been ongoing since 2021. Market analysts point to a combination of technological progress and macroeconomic improvements as the key drivers behind the rally. With this growth, Ethereum is once again reinforcing its position as the leading smart contract platform in the crypto industry.
Etoro and Galaxy Digital move toward public listings
Positive momentum in the crypto sector is translating into renewed IPO activity. Both trading platform eToro and asset manager Galaxy Digital are preparing for public listings in the United States. eToro made its long-anticipated debut at $52 per share, signaling renewed investor trust in crypto markets. Meanwhile, Galaxy Digital is finalizing its plans for a Nasdaq listing. Despite reporting a $295 million loss last quarter, the firm sees long-term growth due to rising demand for institutional crypto solutions. These IPOs highlight a broader trend: crypto firms are maturing and increasingly turning to public markets to raise capital and expand their visibility. The timing appears favorable, with more constructive regulatory signals emerging from the US and improving sentiment around digital assets.
Tariffs Temporarily Lowered and Inflation Eases Further
The United States and China have agreed to temporarily lower mutual trade tariffs for a 90-day period. This move is aimed at easing economic pressure and stimulating global trade flows. Simultaneously, recent data show that US inflation has cooled further, thanks in part to the tariff reductions and slower price increases in the services sector. These developments are being welcomed by financial markets. Optimism is also spreading in the crypto sector: lower inflation and trade barriers boost consumer purchasing power and create a more favorable investment climate. Historically, the crypto market tends to benefit from macroeconomic easing, which can lead to increased capital inflows.
Citi Bank Projects Stablecoins to Reach $3.7 Trillion by 2030
According to a new report from Citi Bank, stablecoins could grow into a $1.6 to $3.7 trillion market by 2030. Currently, the market stands at around 240 billion. The forecast reflects the rapidly expanding use of stablecoins beyond traditional crypto trading, such as in international payments, e-commerce, and digital identity solutions. Citi expects stablecoins to become increasingly embedded in the mainstream financial system over the coming years, supported by rising regulatory clarity and institutional adoption. Currently, stablecoins represent a relatively small share of the overall crypto market, but their transparency, speed, and low transaction costs make them attractive to both businesses and governments. Citi’s projection underscores the idea that stablecoins are evolving from digital cash for traders into foundational infrastructure for the financial system of the future.
In other digital assets news
- The Czech National Bank is considering adding Bitcoin to its reserves.
- Trump’s stablecoin “USD1” has grown to a $2 billion market cap within just two months.
- Citi and SDX collaborate on tokenizing the $75 billion private pre-IPO market.
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