Several events from various ecosystems have made it to this week's major cryptocurrency news list. Key highlights include the Ethereum Pectra upgrade that has garnered expectations and the FOMC (Federal Open Market Committee) meeting.
This week, traders and investors looking to leverage event-specific volatility should pay attention to the following headlines.
Ethereum Pectra Upgrade
On May 7th, the Ethereum network is set to activate the highly anticipated Pectra upgrade, with 11 Ethereum Improvement Proposals (EIPs) to be implemented.
Key features include EIP-7251, which is expected to raise the staking limit from 32 ETH to 2048 ETH. The Pectra upgrade also includes improvements for user-friendly wallets, offering enhanced UX, easier recovery, and eliminating the need for ETH during transactions.
"Ethereum is conducting its biggest upgrade this month," shared by DeFi researcher hodl on X (Twitter).
These changes could promote Staking participation and dApp adoption, potentially increasing ETH demand and Ethereum price.
However, exchanges may temporarily suspend ETH trading during deployment, which could cause short-term volatility.
A smooth rollout could create a positive atmosphere and strengthen Ethereum's dominance, but technical issues could undermine trust and put pressure on ETH price.
Meanwhile, Ethereum's Pectra upgrade has already been delayed multiple times. This is mainly to ensure smooth operation before mainnet launch through pre-checks like Holesky and Sepolia testnet.
Sonic Summit
Before the Pectra upgrade, an important Sonic Summit for the Fantom ecosystem begins on May 6th. The event will be held in Vienna for three days.
The event will showcase the development of an EVM-compatible blockchain boasting high throughput. Reports suggest the focus will be on Fantom's second-level transaction completion, dApp scalability, and potential partnerships.
"Did you buy summit tickets? Meet the pioneering teams leading the DeFi scene at Sonic." Posted by Sonic Labs on X.
New project or integration announcements could spark interest in Sonic's (formerly Fantom) S Token, potentially triggering speculative trading and price surges.
The summit's focus on developer tools and enterprise use cases could attract institutional interest and promote long-term adoption. However, if major announcements are lacking, the market might show minimal reaction or see profit-taking.
Polkadot App Launch
Adding to this week's major cryptocurrency news, Polkadot plans to launch an app that enables Staking, shopping, and savings on a single platform.
The planned Polkadot app aims to simplify user interaction with interoperable blockchain ecosystems. The all-in-one approach could attract retail users, promote adoption, and increase DOT Token demand.
Staking incentives could lock supply, potentially supporting price appreciation. Meanwhile, shopping and savings features could bring real-world use cases and enhance Polkadot's utility.
The app's success depends on user experience and security. Vulnerabilities could undermine trust. If Polkadot gains attention, competitors like Cosmos might face pressure.
Hyperliquid New Fee Structure and Staking Tiers
The Hyperliquid ecosystem unveiled a new fee system and Staking tiers on Monday, May 5th. With this product launch, those Staking HYPE, the token of the decentralized derivatives platform, will receive trading fee discounts.
"...the new Hyperliquid fee system is now activated. This means futures and spot fees are now different (spot fees are calculated with double the volume) and Staking HYPE trading fee discounts are now officially activated." – Highlighted by Steven.hl on X.
These measures aim to encourage Staking and reduce circulating supply. They could support HYPE price stability and potentially trigger a surge.
It will be interesting to observe the revenue trend in the coming weeks. The tiered structure could attract high-volume traders, increasing platform activity and revenue.
Despite the launch, the impact on the HYPE Token was minimal. It declined by 1.42% in the past 24 hours. At the time of writing, HYPE was trading at $20.58.
FOMC Meeting...Powell Press Conference
One of the US economic indicators affecting cryptocurrencies this week is the FOMC meeting and Federal Reserve Chair Jerome Powell's press conference, which is considered one of the major cryptocurrency news stories this week.
On May 8th, the Federal Reserve will announce its next interest rate decision. This is a crucial event for the cryptocurrency market. High interest rates typically reduce risk appetite and can trigger Bitcoin sell-offs. Conversely, an interest rate freeze or cut could spark a rally, as seen in previous dovish signals.
"This Wednesday, May 7th, an FOMC Fed press conference rate cut is not expected... But will they end quantitative tightening?" – Trader Ozzy asked.
Arthur Hayes, co-founder and former CEO of BitMEX, recently predicted that the Fed's potential shift to quantitative easing (or ending quantitative tightening) could drive Bitcoin prices to $250,000. Other analysts are also supporting this transition, citing the MOVE index and global market instability as triggering factors.
Berachain Buyco Unlock
Berachain's Buyco fund is scheduled to unlock on May 6th, with a significant amount of token supply to be released. Specifically, approximately $2.7 billion in Total Value Locked (TVL) will be unlocked from Berachain's Buyco vault on Tuesday.
As one of the largest unlocks, this event could cause dramatic liquidity shifts and high volatility.
Langerius, founder of Hunters of Web3, explained that over $2 billion is ready to be released, and expectations for this event are causing BERA sell-offs.
"Over $2 billion is waiting. That's why BERA is falling quickly. Whales seem to be farming this and moving on." – Langerius said.
Unlock events often trigger sell-offs as early investors or insiders cash out. The market should prepare for volatility, and traders are likely to trade ahead of the unlock.
However, Berachain was the worst-performing blockchain last month, and some analysts suggest the BERA token price has already bottomed out.
"I strongly believe BERA has bottomed out now... And with that much liquidity being unlocked, I hope to see at least a $5 price." – A user expressed.
Coinbase Earnings
Another notable cryptocurrency news this week is the earnings announcement from Coinbase exchange. This announcement will provide insights into the US-based exchange's performance for Q1 2025 and serve as an indicator for the cryptocurrency industry.
Strong revenue from trading fees or growth in institutional services can indicate market health and create a positive sentiment for cryptocurrencies. Conversely, poor results or regulatory concerns could trigger a bearish response, with Coinbase's stock price often correlating with cryptocurrency prices.
The market will closely examine trading volume, user growth, and guidance on Web3 initiatives like the Base blockchain. Positive surprises could drive speculative buying, while disappointing metrics might trigger selling.
Coinbase's performance often sets the tone for exchange tokens like BNB. Traders may position themselves before the announcement, with volatility expected afterward. Past performance exceeding expectations suggests potential upside, though macroeconomic headwinds could temper optimism.
"FOMC and Coinbase earnings. A volatile week for the cryptocurrency market." – Analyst CrypNuevo mentioned.
