Why the Ethereum Ecosystem Soared on Friday

The Ethereum (CRYPTO: ETH) cryptocurrency posted big gains on Friday, accompanied by similar price increases in the supporting ecosystem. As of 3:10 p.m. ET, the Ether coin was up by 13.4% in the last 24 hours.

Wrapped Ethereum (CRYPTO: WETH) had also gained 13.4%, reflecting Ether's real-time price as expected. The reward-oriented Lido Staked Ether (CRYPTO: STETH) also rose 13.4% at the same time, once again mirroring the price and performance of the underlying Ether coin. The iShares Ethereum Trust (NASDAQ: ETHA) may be lower-priced, trading at $17.60 per share instead of $2,341 per coin, but it still follows Ether's every move.

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These tightly related investment vehicles had many reasons to rise. Let's take a look at the three most important price-boosters.

The fuel for Ethereum's fires

The most obvious price booster was a general feeling of relief across the cryptocurrency market. The American economy showed faint signs of recovery today, based on trade talks between Washington and London. This foundation of economic optimism lifted many altcoins sharply higher, but provided less support for the big names. Bitcoin, for example, only posted a 1.5% gain over the same period.

Ether and its Ethereum-based siblings had other growth drivers, though.

Image source: Getty Images.

The Ethereum blockchain got a long-awaited technology upgrade earlier this week. The Pectra upgrade is more than a quick bug-fixing release. As an important part of the Ethereum 2.0 redesign, Pectra boosted the Ethereum blockchain's security and introduced several new features that simplify the development of Ethereum-based applications. Furthermore, it raised the limit of the number of coins that can be staked in a single account -- making Ethereum easier to manage in large-scale investment accounts.

That's still not all. The Coinbase Global cryptocurrency trading platform just introduced 24/7 trading of Bitcoin and Ethereum futures. It wasn't exactly news, since Coinbase announced this plan when it bought the cryptocurrency options exchange Deribit in March, but it's different when you finally see these bullish features in action.

Non-stop futures trading could help stabilize the Ethereum and Bitcoin markets in the long run, especially since a large name like Coinbase is running the service.

Can the Pectra upgrade change Ethereum's gloomy narrative?

Ethereum has underperformed Bitcoin over the last year. Many crypto investors have abandoned this coin due to the rise of competing smart contract systems and a perceived lack of Ethereum innovation. Friday's Pectra upgrade could change that narrative, as long as the Ethereum developer community continues to deliver significant technical improvements. The platform is still seen as slower and less efficient than Solana or Avalanche, for instance.

Time will tell how the blockchain-based programming market works out. Meanwhile, innovative bursts like the Pectra upgrade can remind investors that Ethereum is a serious cryptocurrency with a vibrant community. Whether you're investing directly in Ether coins, in interest-generating Staked Ether tokens, or the lower-priced iShares Ethereum ETF, the long list of planned upgrades should deliver some shareholder-friendly returns over the next couple of years.

Should you invest $1,000 in Ethereum right now?

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Anders Bylund has positions in Bitcoin, Coinbase Global, Ethereum, Solana, and iShares Ethereum Trust-iShares Ethereum Trust ETF. The Motley Fool has positions in and recommends Avalanche, Bitcoin, Coinbase Global, Ethereum, and Solana. The Motley Fool has a disclosure policy.