Ethereum Pectra Arrives On May 7 With Major New Features

The Ethereum blockchain is about to undergo a major turning point with the Pectra upgrade, scheduled for May 7, 2025. Considered the most significant update since Dencun, this upgrade introduces 11 EIPs. Could this upgrade rekindle interest in Ethereum? Analysis.

Ethereum Pectra: What innovations are expected?

The Ethereum Pectra upgrade proves particularly beneficial for:

• validators;
• L2 protocols;
• holders of ETH wallets.

Among the key innovations is the EIP-7251 which multiplies Ethereum’s staking threshold by 64. In other words, validators will now be able to stake up to 2,048 ETH (compared to 32 currently). This evolution directly targets institutional actors. It indeed simplifies node management, in addition to streamlining participation in the consensus.

In addition to this:

• the EIP-6110 to accelerate crypto staking;
• proposals facilitating withdrawals with reduced risk.

Another major advance: the introduction of smart wallets via EIP-7702. Goodbye unexpected transaction fees! The embedded smart contracts will enable:

• sponsoring gas fees;
• grouping multiple actions into a single operation.

The Pectra upgrade of Ethereum is not limited to wallets. It also doubles the capacity of blobs per block (from 3 to 6) for Layer 2 projects. This facilitates data processing while reducing costs. Coupled with EIP-2537, this optimization could even boost interoperability between chains.

Despite these advancements, Ethereum is struggling to revive its on-chain activity. The crypto blockchain has generated only $20 million in fees this month.

Impact on the ETH price: a rebound on the horizon?

Certainly, the Pectra test on the Hoodi network has been a success. Nevertheless, the market remains skeptical. The proof: the price of ETH dropped to $1,774 after the announcement. This reflects persistent selling pressure.

Experts nevertheless estimate that this upgrade could:

• reduce fees for dApps;
• attract more institutions through simplified staking;
• revive adoption via more intuitive wallets.

It remains to be seen if these improvements will be enough to counter the growing competition from alternative blockchains!

The Pectra upgrade marks a key milestone for the crypto blockchain. That being said, its success will depend on its actual adoption. In the meantime, investors are watching May 7, a date that could restart (or not!) the Ethereum ecosystem.