Podcast

ROLLUP: ETH’s Pectra Upgrade | $2T Stablecoin Push | Apple’s Crypto Breakthrough | Coinbase Buys Deribit!

Ethereum surges ahead, regulators get crypto-curious, Apple opens the gates, and Coinbase bets big. Are we officially bullish again?

May 9, 2025 • 3 min read

This week in crypto, optimism flooded back into the markets, driven by major upgrades, regulatory pivots, and strategic acquisitions. With Bitcoin comfortably over $100K and Ethereum soaring after shipping its much-anticipated "Pectra" upgrade, it's safe to say the bulls are back in town—at least for now. Let’s unpack the biggest stories reshaping the crypto landscape this week.

Ethereum’s "Pectra" Upgrade: A Leap Forward for Layer 2

Ethereum’s latest upgrade, Pectra, has officially gone live—and the results are already impressive. Pectra introduces significant enhancements designed to improve user experience, expand scalability, and reduce transaction friction. Among its highlights:

Blob Space Doubled: Pectra effectively doubles the available space for Layer 2 solutions like rollups. This means faster transactions, lower costs, and more capacity to handle increased traffic—crucial as Ethereum continues its quest to scale sustainably.
User Experience Boosted: Account abstraction is now partially realized, enabling wallets to batch transactions, pay gas fees with stablecoins, and even let apps sponsor user fees. Goodbye annoying pop-ups, hello smoother DeFi interactions.

Yet, even amid these improvements, the community debate on Layer 1 scaling persists. Many argue Ethereum must accelerate L1 upgrades to ensure the blockchain remains attractive to Wall Street and major TradFi players who prioritize speed, security, and minimal MEV (Maximum Extractable Value).

Washington Eyes $2 Trillion Stablecoin Market

In a striking reversal, U.S. regulators, led by Treasury Secretary Scott Bessent, are setting their sights on stablecoins. The White House sees potential for stablecoins to underpin $2 trillion in economic activity—an enormous opportunity that could radically transform crypto adoption.

The Senate’s Genius Act, aiming to establish clear regulatory frameworks for stablecoins, is gaining bipartisan momentum, despite resistance from some Democratic lawmakers citing AML and national security concerns. As the regulatory dust settles, major industry players, including Tether and Coinbase, are positioning themselves to become primary issuers in this massive stablecoin market.

Apple’s App Store Monopoly Breaks Wide Open for Crypto

This week, crypto scored a landmark victory in its battle against Apple's App Store monopoly. A U.S. district court ruling forced Apple to loosen restrictive policies, allowing apps to seamlessly incorporate external payment links—bypassing the notorious 30% Apple fee.

For crypto users, this means significant changes:

NFT Marketplaces: Platforms like OpenSea can now support direct NFT buying and selling within their apps, revolutionizing mobile crypto commerce.
Crypto Payments: Mobile apps can integrate crypto payments directly, removing barriers to using stablecoins, ETH, and other tokens for everyday purchases.
Enhanced Utility: NFTs and crypto tokens can unlock gated features within apps, enhancing utility and deepening consumer engagement without restrictions from Apple.

Apple's loss in court could become crypto's massive gain, opening the door to a future of true mobile crypto adoption.

Coinbase’s $9 Billion Bet on Derivatives

In a historic crypto acquisition, Coinbase announced its intention to acquire Deribit—the largest Bitcoin and Ethereum options exchange—for $9 billion in cash and stock. The acquisition positions Coinbase as a global leader in crypto derivatives, rivaling traditional giants like CME and firmly establishing the company’s global presence.

Deribit controls roughly 90% of the global crypto options market but hasn’t been accessible to U.S. customers. Coinbase’s strategic move not only expands its product offerings significantly but also places it squarely at the center of institutional crypto trading—potentially reshaping the competitive landscape.

Are We Back in Bull Territory?

Bitcoin's leap above $100K, combined with Ethereum’s rapid post-upgrade surge and bullish macro developments, begs the question: Are we officially back in a crypto bull market?

While the bullish signs are unmistakable—strong market rallies, major regulatory advancements, and pivotal industry shifts—skepticism remains justified. Concerns linger around the economic impact of tariffs, potential recessionary pressures, and global market uncertainty, highlighted by gold’s recent all-time highs.

Yet, despite these uncertainties, crypto markets are clearly demonstrating resilience and growing maturity. Stablecoin adoption, mobile integration breakthroughs, and significant regulatory clarity could provide a sturdy foundation for sustained growth.

As always, navigating crypto requires caution—but optimism might be warranted more than ever. Are these bullish moves the start of crypto's next golden age, or just a brief surge before more volatility? Stay tuned.

Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.

Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here.

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