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Ethereum developers have implemented the Pectra upgrade, introducing major developments on the network.
Ethereum has announced the launch of its long-awaited “Pectra” upgrade, which combines the “Prague” and “Electra” improvements. This update aims to make the network faster, smarter, and more scalable. The Pectra upgrade was applied at epoch 364032 on May 7, 2025.
Key Technical Improvements
At the heart of the upgrade are three core Ethereum Improvement Proposals (EIPs, with EIP-9698 yet to be launched:
- EIP-7702 introduces smart account functionality. This means regular crypto wallets can work like smart contracts, allowing “gasless” transactions. Users can pay fees with tokens other than ETH.
- EIP-7251 raises the maximum amount validators can stake from 32 ETH to 2,048 ETH. This makes it easier for institutional validators to operate and gives them more flexibility. It also increases the time needed to join or leave the validator group.
- EIP-7691 boosts data blob capacity per block. This benefits Layer 2 (L2) networks by lowering costs and improving speed, which is crucial for Ethereum’s growth.
Why this upgrade matters
Pectra is Ethereum’s way of staying competitive against other networks. With Bitcoin becoming more popular and platforms like Solana and Base succeeding, it is important for Ethereum to keep evolving to maintain its status.
This upgrade makes Ethereum more appealing to businesses, especially those looking for better staking options and robust blockchain solutions. With the aforementioned developments, ETH has surged 2.59% with a 65.47% increase in 24-hour trading volume.
This hints at renewed market optimism as investors anticipate ETH’s growth after such a key technical update. With ETH fluctuating between $1,760 and $1,840, a rally towards $2000 and beyond could be due soon.
