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- Bitcoin Eyes $100K as Ethereum Gears Up for Pectra Upgrade
Bitcoin Eyes $100K as Ethereum Gears Up for Pectra Upgrade
Solana averts token theft, Alliance DAO launches accelerator, and Kaito token gains traction
Token Metrics Daily
May 05, 2025
Happy Monday, TM Family!
Welcome to the first edition of this week’s Token Metrics Daily. We are making some changes to the newsletter, where we will explore the latest developments in the cryptocurrency and blockchain space on Monday, Thursday, and Friday.
For the remaining two days, we will share insights from the Token Metrics Research team, with one ‘crypto deep dive’ report and one ‘crypto hidden gems report’ each week. Please let us know how you feel about this change and if you have any suggestions, through comments.
Let’s dive in!
In Today’s Edition
1. Bitcoin Market Update
Bitcoin is trading above $94,000, encountering resistance in the $93,000-$95,000 range. Overcoming this barrier could propel Bitcoin toward the $100,000 mark, a key psychological milestone for investors.
The Token Metrics’ trader-grade indicator for Bitcoin turned bullish on April 17th, and the Bitcoin price has already been up 10% since then.
The market is also focused on potential development in US-China trade negotiations. China’s Commerce Ministry is reviewing a US proposal to resume talks, with Polymarket estimating a 21% chance of a deal by June and a 47% chance of tariff reduction by May’s end.
The US spot Bitcoin exchange-traded funds (ETFs) continue to see robust inflows, with $1.8B recorded last week, down from $3.06B the previous week. This sustained interest represents Bitcoin’s growing appeal among institutional investors.
2. Ethereum Pectra Upgrade
The Ethereum Pectra upgrade, scheduled for May 7, 2025, is expected to enhance the network’s scalability, security, and user experience. This upgrade combines the Prague (Execution Layer) and Electra (Consensus Layer) updates, introducing several Ethereum Improvement Proposals (EIPs).
The Pectra upgrade is expected to increase the blob throughput. It raises blob data units per block from 3 to 6, with a maximum of 9, significantly benefiting Layer-2 networks. The upgrade also increases the maximum effective balance. It allows validators to stake arbitrary amounts of ETH, with rewards on every one ETH above the minimum, up from 32 ETH to 2,048 ETH.
3. Solana’s Security Fix
Solana addressed a critical vulnerability in its ZK ElGamal Proof program, part of the Token-2022 standard, which could have allowed attackers to mint or steal certain tokens. Discovered on April 16, 2025, the bug was patched by April 18, 2025, with a supermajority of validators adopting the fix. No exploitation was reported, and all funds remained secure.
The vulnerability stemmed from missing algebraic components in the Fiat-Shamir transformation, affecting confidential transfers introduced in October 2023. Solana’s rapid response, supported by security firms like Asymmetric Research and OtterSec, reinforces confidence in its network security.
4. Alliance DAO’s ALL14 Accelerator
Alliance DAO, formerly DeFi Alliance, launched its ALL14 accelerator program, selecting 20 startups from 1,700 applications. The three-month program begins with a two-week in-person phase, followed by remote mentorship lectures, weekly check-ins, and a demo day.
Each startup receives a $450,000 investment at founder-friendly terms, with a median post-program fundraising of $3.5M in the past, from notable investors like Paradigm, DragonFly, and Multicoin.
The cohort’s focus areas include AI (35% of teams) and stablecoins (30%), with Solana, Ethereum, and Base as the most-used blockchains.
5. Kaito: AI, Attention, and Capital
Kaito, an AI-driven crypto project, is gaining significant traction for its innovative approach to navigating the fragmented crypto information landscape. It has three main components, Kaito Pro, Kaito Yaps, and Kaito Connect.
Kaito Pro is an AI-powered search engine indexing thousands of sources of real-time crypto insights, from text, videos, to audio. Kaito Yaps is a tokenized attention system that rewards quality content creators via a performance-based ranking system. And Kaito Connect is an InfoFi network that ensures fair payouts for creators and transparent brand rewards.
The Kaito community is bullish, with its governance model allowing token holders to influence network decisions, enabling a transparent ecosystem.
Meme of The Day
References
That’s all for today, people. Wishing you a great week ahead, and talk to you tomorrow.
Your Friends at Token Metrics
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