In the ever-changing world of cryptocurrencies, Ethereum is about to welcome a critical moment—on May 7, 2025, the highly anticipated Prague upgrade will officially go live on the mainnet.
This news hit the market like a boulder thrown into a calm lake, stirring up waves. Back in March, due to testing errors, Ethereum's price once plummeted to $1380, like a kite with a broken string, severely triggering the market's sensitive nerves.
And now, with the launch date already set, cryptocurrency enthusiasts and investors are holding their breath, waiting for this upgrade to bring innovation to Ethereum and the entire crypto ecosystem.
Upgraded Ethereum: Speed has increased, but can it surpass Solana?
Ethereum has always stood firm in the blockchain forest with its strong decentralization features, but this has also somewhat limited its transaction speed.
In this Prague upgrade, developers have meticulously optimized transaction processing, with the implementation of proposals like EIP-7623 and EIP-7691, leading to a significant increase in transaction speed. However, when we turn our attention to Solana, the blockchain platform known for its speed, Ethereum still appears slightly inferior.
Solana's validator node layout tends to be more centralized, allowing it to excel in transaction speed. However, Ethereum's commitment to decentralization results in higher security and broader global trust.
Can this trade-off strike a perfect balance between performance and security for Ethereum after the upgrade, or will users continue to have regrets about speed?
Gas fee payment innovation: stablecoins entering the scene, is ETH's status impacted?
For a long time, ETH has been the only currency for paying Gas fees on the Ethereum network, and its status seemed rock solid. However, with the implementation of the EIP-7702 proposal, the realization of account abstraction has brought about a revolutionary change in Gas fee payments.
Now, users can choose to pay Gas fees using stablecoins USDC or DAI.
This change undoubtedly lowers the barrier to entry for new users, allowing more people to easily step into the Ethereum ecosystem. However, this has sparked intense debate in the market, with some cheering that this will attract a massive number of new users, thriving the Ethereum ecosystem;
Meanwhile, another group of people is worried that this will weaken the demand for ETH as the network's native token, thereby affecting its price trend. So, is the innovation in Gas fee payment a boost or a hindrance for ETH?
Staking limits surge: a feast for large stakers?
In the staking field, the Ethereum Prague upgrade has also brought remarkable changes.
In the past, stakers could stake a maximum of 32 ETH at a time, but now the single staking limit has surged to 2048 ETH.
This giant leap is undoubtedly great news for large stakers and institutional investors. The simplified management process not only reduces their operational costs but also allows them to achieve higher returns from staking.
But does this mean ordinary stakers will be marginalized? Moreover, with the increase in staking limits, the number of validators is expected to decrease, what subtle impact will this have on the decentralization of the Ethereum network?
Gas fees decrease: a crisis for Layer 2?
For a long time, Layer 2 solutions like Arbitrum and Optimism attracted a large number of users with lower transaction fees, becoming an indispensable part of the Ethereum ecosystem.
However, the Prague upgrade further reduced Ethereum's mainnet Gas fees by optimizing data processing. This is undoubtedly a boon for ordinary users and developers, as transaction costs decrease and the user experience improves. But for Layer 2, the situation becomes delicate.
If the transaction fees on the mainnet are similar to those of Layer 2, will users still choose to use Layer 2?
Has the recent slump of ARB and OP been a precursor to the market's response to this change? How should Layer 2 ecosystems respond to this 'price war' from the mainnet?
Vitalik's original intention: a steadfast commitment to decentralization
From the many contents of this upgrade, we can easily see Vitalik Buterin's original intention— to build a truly decentralized financial network.
He has always placed network security and long-term development above short-term price fluctuations or speed improvements. The Prague upgrade vividly embodies this philosophy, as it pursues performance improvements while never abandoning the commitment to decentralization principles.
But in the profit-seeking environment of the market, can this adherence to original intentions lead Ethereum to stand out in fierce competition and write a new legend in the blockchain field?
The curtain for the Ethereum Prague upgrade is about to rise, with significant changes in speed, Gas fees, staking, and other aspects, triggering a series of chain reactions in the Ethereum ecosystem and the entire cryptocurrency world, like a domino effect.
Is this upgrade truly a magnificent transformation, or is it an adventure filled with unknown risks? Let us witness Ethereum's new journey together after May 7.
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