Key Highlights:
Ethereum’s development team has set an official launch date for the Pectra upgrade mainnet, aimed at enhancing key operational aspects such as scalability, wallet capabilities, and transaction processing. Yet, despite these promising advancements, Ethereum’s market price continues its slide, raising concerns about further potential declines, especially in light of President Trump’s newly announced “Liberation Day” tariff.
The Pectra upgrade mainnet is slated for release on May 7, 2025, as confirmed by Ethereum developers. This significant upgrade is based on 11 Ethereum Improvement Proposals (EIPs) and targets major areas, including enhancements to wallet functionality.
The Pectra Upgrade: Uniting Past Innovations
In a recent Consensus Layer Meeting call held on April 3, Ethereum’s team revealed the successful completion of the third and final dry run of the Pectra upgrade on the Hoodi testnet. This achievement is significant as it addresses earlier identified bugs that had delayed prior testing stages.
With these issues now resolved, the Hoodi testnet is prepared to transition into the mainnet phase. The Pectra upgrade is highly anticipated within the Ethereum community, as it aims to integrate two prior significant upgrades, Electra and Prague, into a single streamlined release. This consolidation is expected to enhance the network’s scalability, security, and overall user experience.
A notable feature accompanying the upgrade is the introduction of smart accounts, designed to offer Ethereum wallets enhanced recovery options for users who may lose access. Additionally, the Pectra upgrade will implement EIP-7702, introducing a new transaction type (type 4) that allows externally owned accounts (EOAs) to function as smart accounts, facilitating approvals and swaps within a single transaction.
These improvements are anticipated to make the Ethereum experience more accessible, particularly for users who may not possess technical expertise.
Enhancements to Staking and Scalability
Among the most critical features of the Pectra upgrade are changes to Ethereum’s staking model and improvements in scalability. EIP-7251 will raise the staking cap from 32 ETH to 2,048 ETH, encouraging increased institutional participation in Ethereum staking.
This elevated cap is expected to enhance liquidity within the Ethereum network, allowing institutional players to engage more meaningfully, thereby bolstering network stability.
Furthermore, EIP-7691 aims to enhance scalability, a crucial focus for Ethereum’s ongoing development. This EIP will boost the maximum blob count, which in turn will improve the performance of rollups—key mechanisms that facilitate faster and more cost-effective transaction processing while leveraging Ethereum’s inherent security.
As the Pectra upgrade approaches, developers are diligently ensuring that each aspect of the upgrade undergoes comprehensive testing prior to its launch.
Ethereum’s Price Plummets by 45% in 2025
In the current cryptocurrency landscape, positive developments often influence the price of digital assets. For instance, the introduction of Bitcoin ETFs propelled BTC prices to new heights, while the assumption of office by President Trump on January 20 saw BTC reach an all-time high of approximately $109,000, reflective of his pro-crypto campaign promises.
Conversely, Ethereum has struggled to capitalize on similar positive sentiment, with its price decreasing by 45.4% since the beginning of the year, currently trading at $1,778. This substantial drop positions Ethereum as one of the laggards among major cryptocurrencies.
Ethereum’s price has declined by 6.72% over the past week | Source: CoinMarketCap
This decline is attributed to intensifying competition from alternative smart contract platforms, such as Solana (SOL), as well as broader market dynamics influencing asset valuations. Currently, the Crypto Fear and Greed Index stands at 28, indicating a pervasive decline in investor sentiment following former President Trump’s announcement of comprehensive tariffs under the “Liberation Day” initiative. This plan implemented a baseline tariff of 10% on all imports, with higher rates targeting specific countries, including China, Vietnam, and nations within the European Union.
As anticipated by analysts, this announcement had repercussions across global markets, including the cryptocurrency sector, resulting in a 4% drop in overall market capitalization.
Nevertheless, prospects for Ethereum may not be entirely bleak. Crypto analyst and trader Big Cheds has identified the $1,200 price point as a crucial support level for ETH. He suggests that if the price rebounds from this level, there could be possibilities for a mid-term rally, potentially driving the asset towards the $3,400 range—a significant 283% increase.
This upswing could align with the rollout of the Pectra upgrade, potentially boosting ETH’s price if the anticipated improvements in scalability and functionality materialize successfully.
Frequently Asked Questions (FAQs)
Will the Pectra upgrade impact Ethereum’s energy consumption? While Ethereum developers have not indicated that the Pectra upgrade will directly address energy consumption, its scalability improvements may indirectly benefit energy efficiency.
What will be the implications of the changes in staking for smaller Ethereum holders? With the upcoming increase in the staking cap, smaller holders might encounter challenges in staking at higher levels, though the upgrade may enhance overall network security.
The post Ethereum Developers to Launch Pectra Upgrade Mainnet on May 7 appeared first on Cryptonews.
