The Defiant

Ether Surges Past $2,000 After Successful Upgrade

Markets Rally After Data Shows US Economy Cooling

By: Owen Fernau

Ether Surges Past $2,000 After Successful Upgrade

Ether is trading above $2,000 for the first time since August 2022, a day after its heavily anticipated Shapella upgrade was executed successfully, up nearly 5% on the day.

Bitcoin has been on a roll of its own, surpassing $30,000 for the first time since June on April 11. The world’s largest digital asset is up 8% in the past week.


LDO and RPL, the governance tokens of major liquid staking providers Lido Finance and Rocket Pool, dropped significantly in the week leading up to Shapella — both are down over 5% on the week, but have bounced back in the past 24 hours.

XRD, the native token of Radix, a DeFi-focused blockchain which launched in 2021, is the top gainer among the top 100 digital assets by market capitalization, up 26% in the past 24 hours.

Solana’s SOL is outperforming among larger Layer 1 smart contract platforms — the digital asset is up over 17% on the week.


Solana’s much-hyped mobile device is launching today, which may be driving SOL price action.

Other Layer 1 tokens, like NEAR and FTM, have also posted strong weeks, with each up 9% or more in that span.

Macro Factors

Markets caught a tailwind after a report from the U.S. Department of Labor showed that initial jobless claims are at the highest levels since January 2022.

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The Consumer Price Index report also came out yesterday from the U.S. Bureau of Labor Statistics — CPI clocked in at an annualized rate of 5%.

While the figure is down from its peak of 9.1% in June 2022, the United States has still seen annualized inflation of over 5% for the past 21 months.


Annualized CPI. Source: BLS

The Fed also released the minutes from its March meeting on April 12. The statement included the prediction of a mild recession later this year.

Investors are no doubt hoping that rising unemployment coupled with cooling inflation leads the US central bank to take a more accommodative stance. However, markets still predict another 25 basis point hike when the Fed next meets on May 3.


May 3 Rate Probabilities. Source: CME FedWatch

The anticipated hike represents a reversal from last week, when traders saw a cessation of hikes as being more likely.