Ethereum's Comeback Story?
The hype is real. Ethereum, the second largest cryptocurrency after Bitcoin (BTC), whose blockchain powers a large chunk of the crypto world, recently rolled out its latest big update called Pectra.
Ethereum's Mainstream Moment
So, is all the fuss worth paying attention to?
Sean Sanders, CFA Charterholder and CEO of Cape Town based alternative investing platform Altify, answers: 'Yes — this could be Ethereum's mainstream moment, similar to how streaming services like Netflix made movies accessible on demand in every home, moving beyond physical rentals or broadcast schedules. This upgrade lays crucial groundwork for Ethereum's future growth and its role in the wider financial world.
Using crypto and decentralised applications has felt far too technical for most. Pectra and the other upgrades to come are all about smoothing out those rough edges, making Ethereum much simpler and more powerful for everyone, not just crypto enthusiasts.'
To celebrate this milestone, Altify's offering fee-free Ethereum (ETH) investing for the next week. You can invest any amount with zero fees. Be sure to read the Terms & Conditions at the bottom of this article.
So, What Does Pectra Actually Do for You?
Blockchains are software, so you can think of this like a big operating system update for your phone that makes everything smoother, quicker, and more secure. That's Pectra for Ethereum. It focuses on several key areas to genuinely improve how you use the network, delivering smarter, more intuitive wallets, lower transaction fees for all popular Ethereum apps, and a more powerful backbone for the entire system.
Why is This Important?
Financial products, like stocks and bonds, and real-world assets (RWAs), like property title deeds or commodities that exist in the physical world can have their ownership rights represented as a digital token on a blockchain.
While Artificial Intelligence (AI) has been a major trend for the past few years, the rise of asset tokenisation isn't far behind.
The chart below shows how quickly tokenised real-world assets (not including stablecoins — digital tokens that are backed by regular money, often a so-called fiat currency like the US dollar) have grown. They've seen an explosive 85% year-over-year increase, reaching $15.2 billion by December 2024. If you include stablecoins the total tokenised market jumps to over $217.26 billion.
Larry Fink, the CEO of BlackRock, one of the world's largest investment firms, has spoken extensively about the future of finance and the role of tokenisation. He believes that 'the next generation for markets, the next generation for securities, will be tokenisation of securities'. He has also stated that 'every stock or bond will be on one general ledger, and every investor will have their own identification'. This vision, shared by millions of industry professionals, exists because tokens digitise and automate processes, reduce costs tied to middlemen, while offering transparency, programmability, and 24/7 transferability.
Ethereum is the foundational infrastructure for tokenisation, and that's no accident. Unlike Bitcoin, Ethereum's blockchain has 'smart contracts.' These are like built-in agreements that let people create, manage, and send all kinds of digital tokens. The more these tokenised assets are created and are transferred on Ethereum, the more useful and valuable the network becomes. This, in turn, boosts the value of Ethereum's own cryptocurrency, called Ether (ETH).
Its established infrastructure, widespread developer ecosystem and proven security have made it by far the market leader, commanding $134 billion or 61.75% of the tokenised real-world asset market. It also handles the vast majority of stablecoin volume, making it a significant part of the digital economy.
Ethereum is set to play a central role in how traditional finance and real-world assets merge with the digital asset world.
The Market is Taking Notice
The market has reacted positively since the Pectra upgrade was completed in early May. Over $205 million has been invested into Ethereum's listed investment products. This shows growing confidence in Ethereum's future, particularly from larger institutional investors. They see these upgrades making the network more professional and predictable.
However, ether (ETH), Ethereum's native cryptocurrency, hasn't kept pace with Bitcoin in performance. Bitcoin has led the way over the last four years, providing investors a remarkable 170% return, while Ethereum had a 6% drop over the same period.
This is all while Bitcoin has experienced minimal technological developments while Ethereum has rolled out numerous upgrades and improvements.
Bitcoin vs Ethereum
The ratio of Ethereum's price to Bitcoin's price (the ETH/BTC ratio) in the chart below represents the amount of Bitcoin it takes to buy 1 Ether. When the ratio rises, Ether is outperforming Bitcoin – and when it falls, Ether is underperforming.
Ethereum's price performance has disappointed with the ETH/BTC ratio reaching near five-year lows before Pectra, but has since seen a notable rebound.
Ethereum's Comeback Story?
Ethereum's up over 50% over the last month, ahead of Bitcoin and major other cryptocurrencies, suggesting renewed interest in Ethereum's 'catch-up' trade.
While Bitcoin has had its moment in the spotlight over the last few years, savvy investors look ahead. Ethereum is well-positioned to keep growing and gain market share in the coming 1, 3, 5, or even 10 years.
The stage is set for Ethereum. With foundational upgrades making the network more powerful, the rapid rise of real-world asset tokenisation, and its established dominance in tokenisation and stablecoins, Ethereum has the potential to evolve from a promising technology into the technological backbone of financial markets.
Ready to Explore Ethereum?
Altify is running a limited time, fee-free promotion on all Ethereum (ETH) investments. All you need to do is sign up and invest in Ethereum with as little as R150.
To get started and take advantage of Altify's fee-free offer:
Sign Up
Download the Altify mobile app (Apple or Android) and verify your account.
Fund Your Account
Deposit at least R150 via bank transfer.
Invest
Take advantage of the Altify fee-free promotion and sell out whenever you wish. DM
Risk Disclosure
Altify SA Capital (Pty) Ltd (FSP 52727) and Altify SA DAS (Pty) Ltd (FSP 53289) are both authorised financial services providers (FSPs).
This article is provided solely for informational purposes. The opinions expressed herein do not constitute investment advice or recommendations, nor should they be regarded as such. This document does not represent an offer to buy or sell, or a solicitation of an offer to buy or sell, any of the investments mentioned. Altify operates as a brokerage service facilitating the reception and transmission of crypto asset orders, without providing investment advice or personalised recommendations. While Altify advocates for the broader accessibility of cryptocurrencies, they may not be suitable for every investor. It is important to consider your investment goals, experience level, and seek independent financial advice where necessary. Altify strongly recommends conducting comprehensive research before investing in cryptocurrencies.
Investors are solely responsible for their own investment decisions. Considering the high volatility associated with cryptocurrencies, please evaluate your financial circumstances carefully before engaging in transactions. Cryptocurrencies carry a high risk, with potential for both significant gains and losses. Investing in cryptocurrencies may lead to a total loss of capital. Past performance is not indicative of future results, and returns cannot be guaranteed as cryptocurrency values fluctuate based on market supply and demand. Do not invest more than you can afford to lose and seek professional guidance if you are unsure about the suitability of a cryptocurrency investment for your specific situation.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
IOL News
a day ago
- IOL News
Global crypto payment acceptance surges past Visa, Mastercard
Bitcoin. No longer a niche, crypto payments have demonstrably cleared a critical mass, with stablecoin adoption and usage outpacing traditional payment services in many regions. Image: Reuters The crypto payment landscape has crossed the chasm, surging past early adoption into the mainstream of global commerce as US dollar (USD)-backed stablecoins out-performed Visa and Mastercard in all four quarters of last year and continued their dominance in Q1 2025. No longer a niche, crypto payments have demonstrably cleared a critical mass, with stablecoin adoption and usage outpacing traditional payment services in many regions. According to a report by crypto exchange global stablecoin transfers reached $27.6 trillion in 2024, outpacing Visa and Mastercard's combined transaction volume by 7.68%, In response, both Visa and Mastercard are rolling out stablecoin services to get a share of the payment action. Mastercard recently partnered with MoonPay to enable stablecoin payments across 150 million merchants, which follows earlier deals with OKX, Nuvei, and Circle, while Visa is piloting stablecoin services in six Latin American countries. This means acceptance of blockchain-based digital assets as a legitimate means of exchange is not only growing; it has already hit the mainstream. Other service providers like Bitpay are also enabling wider adoption. The cryptocurrency payment processing company has 250,000 large customers that accept crypto, with leading global companies such as Microsoft, Burger King, adidas, AT&T, and PayPal having integrated cryptocurrencies into their payment systems, enabling consumers to use the asset class for everyday transactions. Interestingly, the rates of adoption and usage of cryptocurrency as a means of exchange are growing fastest outside the developed world. According to Chainalysis's 2024 Global Adoption Index, the Central and Southern Asia and Oceania (CSAO) region leads the world in terms of global cryptocurrency adoption, with seven of the top 20 countries located in the area. The report also found that decentralised finance (DeFi) services increased significantly in Sub-Saharan Africa, with South Africa emerging as a major hub for cryptocurrency payments within the retail sector in 2024. The use of cryptocurrency as a payment method is gaining momentum in South Africa following two significant developments. Pick n Pay, one of the country's largest supermarket chains, announced a partnership with MoneyBadger to begin accepting Bitcoin payments at over 2,200 stores nationwide, enabling customers to pay for daily essentials with the cryptocurrency stored in a range of Bitcoin wallets. More recently, a prominent crypto exchange integrated with Zapper, allowing users to make seamless cryptocurrency payments at a growing number of retailers. This development marks a significant step in South Africa's embrace of digital assets, further bridging the gap between cryptocurrency and everyday commerce. According to MoneyBadger stats, South Africa's crypto users per capita are among the highest globally at 12%, ranking the country 14th globally in cryptocurrency payment acceptance. Payment acceptance is growing as the integrated ecosystem around blockchain-based digital assets evolves in lockstep with progressive regulatory reforms and licensing from the Financial Sector Conduct Authority (FSCA), which has approved the use case. The FSCA officially declared crypto assets as a financial product in terms of the Financial Advisory and Intermediary Services Act (FAIS) in October 2022. The Bitcoin Lightning network enables instant, secure, low-cost Bitcoin transactions that happen faster than bank transactions, with credit card payments often taking a day to clear. Retailers can also save on the merchant fees and costs that come with accepting credit cards, explains Olivier, as the economies of scale achieved on the Lightening Network or either second-layer applications or side chains support more transactions on a single contract, effectively reducing fees. As more players enter the market, fees will come down further as the decentralised nature of cryptocurrency payments do not require interbank settlement, and the customer pays some part of the transaction cost. In addition, a retailer can get cost-effective and near-instant clearance when accepting crypto payments on the Lightening Network or other side chains or second-layer applications. The ability for large retailers to receive the payment faster has massive implications for the business, shifting cash flow from a month-to-month to a day-to-day basis. This value proposition is compelling for retailers. However, while there are more major retailers adopting cryptocurrency as a valid form of payment, we need to see mass adoption to achieve the scale necessary to drive the network effect and spur usage. A major challenge creating a sticking point for mass adoption is consumers' unwillingness to part with their cryptocurrency. There are 5.8 million South Africans who own cryptocurrency, suggests data from the South African Revenue Service (SARS), with a Statista Market Forecast predicting that this number will reach 6.05 million by the end of 2024, with $388.3 million in unspent cryptocurrency assets. However, the average consumer is not using cryptocurrency as a means of exchange. Instead, they view cryptocurrencies as an investment opportunity or store of value. While crypto was initially designed to facilitate secure decentralised peer-to-peer (P2P) payments, it has since evolved into a speculative asset class with the rise of crypto exchanges and the exponential rise in cryptocurrency values. The key to boosting usage is shifting consumers from this speculative mindset, but this cannot happen if retailers wait for usage to increase. We need to see more widespread acceptance by more big-name physical and e-commerce retailers to realise the network effect that will start driving usage and promote spending from consumers. The local industry has the ecosystem in place to support mass adoption by retailers and usage by consumers. While concerns exist around crypto payment integration into ERP systems due to the complexity this can introduce, the industry has the skills and expertise to make this happen. Businesses can also access advice and solutions to hedge against cryptocurrency volatility, ensuring every eventuality is covered, whether they want to accept crypto payments as a valid form of tender, which is converted instantly to fiat currency, or retain the cryptocurrency on balance sheet. Wiehann Olivier, a Partner and FinTech & Digital Assets Lead and Dinesh Gurlal Director, IT Assurance at Forvis Mazars in South Africa. Dinesh Gurlal Director, IT Assurance at Forvis Mazars in South Africa Image: Supplied. Wiehann Olivier, a Partner and FinTech & Digital Assets Lead Image: Supplied. BUSINESS REPORT Visit:
Daily Maverick
3 days ago
- Daily Maverick
Bitcoin nears R2m as crypto goes mainstream — but don't get too excited just yet
In case you missed it last week, bitcoin hit almost R2m. This wasn't just another crypto bro celebration moment either — it goes deeper. Bitcoin's breakthrough last week to past $111,000 (R1,966,480 for those keeping track) has been hailed as a genuine turning point for digital assets, coming at a time when traditional tech stocks were having what can only be described as a tantrum. 'Bitcoin hitting a new all-time high above $111,000 marks a major milestone for the crypto industry,' said Hannes Wessels, the general manager of Binance South Africa. 'It reflects growing global confidence in digital assets, driven by strong institutional demand and regulatory progress.' Translation for the rest of us: Big money is finally taking crypto seriously, and governments are starting to figure out how to regulate it without completely breaking it. When trading goes nuclear The bitcoin surge wasn't happening in isolation. On 19 May, crypto wallet platforms recorded the kind of trading volumes that would make the JSE weep with envy. Binance Wallet alone hit over $5-billion in daily trading — that's roughly R88-billion changing hands in a single day on one platform. To put it in perspective, that's more than the entire market capitalisation of Shoprite, and it happened in 24 hours on a platform most South Africans probably haven't heard of. This trading frenzy suggests something fundamental is shifting in how people interact with cryptocurrencies. Gone are the days when crypto was just about buying bitcoin and hoping for the best. Users are becoming more sophisticated, seeking out early opportunities and engaging with what the tech crowd calls 'Web3' — think of it as the internet's awkward teenage phase, where everything becomes decentralised and confusing. The early bird gets the (digital) worm Much of this activity revolves around platforms that let users get in on cryptocurrency projects before they hit the big exchanges. These early-access platforms have become incredibly popular by offering exclusive token generation events and airdrops. Since December 2024, Binance Alpha has featured 18 tokens that eventually got listed on major exchanges — a 43% success rate that would make any venture capitalist jealous. Here's where it gets interesting for regular investors: participants in these early events bought tokens at prices averaging eight times lower than their opening day values. That's the kind of return that makes property investment look like a savings account. But — and this is a big but — this is also where things get properly risky. Don't fall for the Fomo trap Before you start liquidating your unit trust to chase crypto dreams, let's talk reality. Getting early access to cryptocurrency projects is like being invited to a high-stakes poker game where half the players are card sharks and the other half are algorithms. Yes, the potential returns are eye-watering. But so are the risks: Regulatory roulette: Governments worldwide are still figuring out how to handle crypto. Rules can change overnight, potentially making your investment illegal or inaccessible. Hacker heaven: Crypto platforms are magnets for cybercriminals. When they succeed, your money disappears into the digital ether with zero chance of recovery. Volatility on steroids: Traditional shares can be volatile, but crypto makes the JSE look like a lazy Sunday afternoon. Prices can swing 50% in a day just because someone influential tweeted something. Liquidity nightmares: Sometimes you can't sell your tokens even if you want to, because there aren't enough buyers or the trading volumes are too low. Technical meltdowns: When platforms crash or have bugs, your investments can be stuck in digital limbo. When courts get crypto reality The legal system is slowly catching up with crypto reality, and the results are sobering for investors who think digital assets are a guaranteed path to riches. A recent UK Court of Appeal case involving Bitcoin SV investors provides a masterclass in crypto reality checks. These investors sued Binance and other exchanges for $13.4-billion (yes, billion), claiming that delisting their favourite token prevented it from becoming the next bitcoin. The court's response was, essentially, 'Nice try, but no.' The judges ruled that cryptocurrencies are 'by their nature, volatile investments' and should be treated like shares or other financial instruments. More importantly, they rejected the idea that investors could claim damages based on what their tokens might have been worth in some hypothetical future. As the court put it: 'It would be unthinkable for the holders of freely tradeable shares, whose value had been reduced by tortious conduct, to be able to claim more than the current value of those shares to compensate them for the prospect that their value might have substantially increased in the future.' This ruling could reshape how crypto disputes are handled globally, establishing that digital assets don't get special treatment just because they're digital. The regulatory maze Meanwhile, regulators worldwide are creating a patchwork of rules that would make a tax consultant weep. The European Union's new crypto regulations are so strict that Tether — the company behind the world's most popular stablecoin — simply refused to comply. This has led to major exchanges delisting USDT (a dollar-pegged cryptocurrency) for European users, creating a fragmented market where your access to certain digital assets depends entirely on your location. In Nigeria, tensions have escalated dramatically, with authorities seeking $79.5-billion from Binance in alleged damages, plus another $2-billion in back taxes. What this means for you For South African investors watching this unfold, the message is clear: crypto is maturing, but it's maturing into something complex and regulated, not the Wild West of easy money that early adopters experienced. The good news is that institutional money is flowing in, providing stability and legitimacy. The bad news is that with legitimacy comes regulation, compliance costs, and the kind of complexity that makes traditional investments look simple. Bitcoin's march toward R2-million represents genuine progress for digital assets, but it's progress that comes with grown-up responsibilities and grown-up risks. Keep it tidy The cryptocurrency market is undoubtedly entering a new phase of maturation, with unprecedented trading volumes, institutional adoption and regulatory clarity. But this maturation cuts both ways — while it brings legitimacy and stability, it also brings complexity and risk that many retail investors aren't prepared for. For South Africans considering crypto investments, the advice remains unchanged: only invest what you can afford to lose, understand the risks, and remember that past performance — even R2-million Bitcoin — is never a guarantee of future returns. DM
Daily Maverick
3 days ago
- Daily Maverick
Ethereum's Comeback Story?
The hype is real. Ethereum, the second largest cryptocurrency after Bitcoin (BTC), whose blockchain powers a large chunk of the crypto world, recently rolled out its latest big update called Pectra. Ethereum's Mainstream Moment So, is all the fuss worth paying attention to? Sean Sanders, CFA Charterholder and CEO of Cape Town based alternative investing platform Altify, answers: 'Yes — this could be Ethereum's mainstream moment, similar to how streaming services like Netflix made movies accessible on demand in every home, moving beyond physical rentals or broadcast schedules. This upgrade lays crucial groundwork for Ethereum's future growth and its role in the wider financial world. Using crypto and decentralised applications has felt far too technical for most. Pectra and the other upgrades to come are all about smoothing out those rough edges, making Ethereum much simpler and more powerful for everyone, not just crypto enthusiasts.' To celebrate this milestone, Altify's offering fee-free Ethereum (ETH) investing for the next week. You can invest any amount with zero fees. Be sure to read the Terms & Conditions at the bottom of this article. So, What Does Pectra Actually Do for You? Blockchains are software, so you can think of this like a big operating system update for your phone that makes everything smoother, quicker, and more secure. That's Pectra for Ethereum. It focuses on several key areas to genuinely improve how you use the network, delivering smarter, more intuitive wallets, lower transaction fees for all popular Ethereum apps, and a more powerful backbone for the entire system. Why is This Important? Financial products, like stocks and bonds, and real-world assets (RWAs), like property title deeds or commodities that exist in the physical world can have their ownership rights represented as a digital token on a blockchain. While Artificial Intelligence (AI) has been a major trend for the past few years, the rise of asset tokenisation isn't far behind. The chart below shows how quickly tokenised real-world assets (not including stablecoins — digital tokens that are backed by regular money, often a so-called fiat currency like the US dollar) have grown. They've seen an explosive 85% year-over-year increase, reaching $15.2 billion by December 2024. If you include stablecoins the total tokenised market jumps to over $217.26 billion. Larry Fink, the CEO of BlackRock, one of the world's largest investment firms, has spoken extensively about the future of finance and the role of tokenisation. He believes that 'the next generation for markets, the next generation for securities, will be tokenisation of securities'. He has also stated that 'every stock or bond will be on one general ledger, and every investor will have their own identification'. This vision, shared by millions of industry professionals, exists because tokens digitise and automate processes, reduce costs tied to middlemen, while offering transparency, programmability, and 24/7 transferability. Ethereum is the foundational infrastructure for tokenisation, and that's no accident. Unlike Bitcoin, Ethereum's blockchain has 'smart contracts.' These are like built-in agreements that let people create, manage, and send all kinds of digital tokens. The more these tokenised assets are created and are transferred on Ethereum, the more useful and valuable the network becomes. This, in turn, boosts the value of Ethereum's own cryptocurrency, called Ether (ETH). Its established infrastructure, widespread developer ecosystem and proven security have made it by far the market leader, commanding $134 billion or 61.75% of the tokenised real-world asset market. It also handles the vast majority of stablecoin volume, making it a significant part of the digital economy. Ethereum is set to play a central role in how traditional finance and real-world assets merge with the digital asset world. The Market is Taking Notice The market has reacted positively since the Pectra upgrade was completed in early May. Over $205 million has been invested into Ethereum's listed investment products. This shows growing confidence in Ethereum's future, particularly from larger institutional investors. They see these upgrades making the network more professional and predictable. However, ether (ETH), Ethereum's native cryptocurrency, hasn't kept pace with Bitcoin in performance. Bitcoin has led the way over the last four years, providing investors a remarkable 170% return, while Ethereum had a 6% drop over the same period. This is all while Bitcoin has experienced minimal technological developments while Ethereum has rolled out numerous upgrades and improvements. Bitcoin vs Ethereum The ratio of Ethereum's price to Bitcoin's price (the ETH/BTC ratio) in the chart below represents the amount of Bitcoin it takes to buy 1 Ether. When the ratio rises, Ether is outperforming Bitcoin – and when it falls, Ether is underperforming. Ethereum's price performance has disappointed with the ETH/BTC ratio reaching near five-year lows before Pectra, but has since seen a notable rebound. Ethereum's Comeback Story? Ethereum's up over 50% over the last month, ahead of Bitcoin and major other cryptocurrencies, suggesting renewed interest in Ethereum's 'catch-up' trade. While Bitcoin has had its moment in the spotlight over the last few years, savvy investors look ahead. Ethereum is well-positioned to keep growing and gain market share in the coming 1, 3, 5, or even 10 years. The stage is set for Ethereum. With foundational upgrades making the network more powerful, the rapid rise of real-world asset tokenisation, and its established dominance in tokenisation and stablecoins, Ethereum has the potential to evolve from a promising technology into the technological backbone of financial markets. Ready to Explore Ethereum? Altify is running a limited time, fee-free promotion on all Ethereum (ETH) investments. All you need to do is sign up and invest in Ethereum with as little as R150. To get started and take advantage of Altify's fee-free offer: Sign Up Download the Altify mobile app (Apple or Android) and verify your account. Fund Your Account Deposit at least R150 via bank transfer. Invest Take advantage of the Altify fee-free promotion and sell out whenever you wish. DM Risk Disclosure Altify SA Capital (Pty) Ltd (FSP 52727) and Altify SA DAS (Pty) Ltd (FSP 53289) are both authorised financial services providers (FSPs). This article is provided solely for informational purposes. The opinions expressed herein do not constitute investment advice or recommendations, nor should they be regarded as such. This document does not represent an offer to buy or sell, or a solicitation of an offer to buy or sell, any of the investments mentioned. Altify operates as a brokerage service facilitating the reception and transmission of crypto asset orders, without providing investment advice or personalised recommendations. While Altify advocates for the broader accessibility of cryptocurrencies, they may not be suitable for every investor. It is important to consider your investment goals, experience level, and seek independent financial advice where necessary. Altify strongly recommends conducting comprehensive research before investing in cryptocurrencies. Investors are solely responsible for their own investment decisions. Considering the high volatility associated with cryptocurrencies, please evaluate your financial circumstances carefully before engaging in transactions. Cryptocurrencies carry a high risk, with potential for both significant gains and losses. Investing in cryptocurrencies may lead to a total loss of capital. Past performance is not indicative of future results, and returns cannot be guaranteed as cryptocurrency values fluctuate based on market supply and demand. Do not invest more than you can afford to lose and seek professional guidance if you are unsure about the suitability of a cryptocurrency investment for your specific situation.
