Ethereum's price surged dramatically over the past week, attributed to a shift in how investors perceive the network's value. Analysts at Bernstein noted an increase in interest for layer-2 networks and the expanding role of stablecoins in cross-border payments as significant factors. Ethereum's price recently neared $2,600, marking a 42% gain over seven days, outpacing Bitcoin and other major cryptocurrencies. The recent Pectra upgrade boosted trade efficiency and speed, rejuvenating interest in the network. Additionally, as the regulatory environment around stablecoins becomes more favorable, this has prompted further investment in Ethereum, which accounts for a significant share of the stablecoin market. Companies like Robinhood aim to leverage Ethereum-based layer-2 networks for tokenized equities, potentially increasing demand for ETH as these initiatives unfold. Overall, the analysts suggest that Ethereum's strong performance is influenced by changing narratives towards institutional adoption of blockchain technology and a recovering market interest.

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