In the next two days, Ethereum will witness one of its most significant technical upgrades in history: PECTRA.
This upgrade introduces a total of 11 EIPs (Ethereum Improvement Proposals), setting a historical record, covering key areas such as account abstraction, Rollup optimization, and staking mechanism improvements.
This article will break down the technical logic behind each EIP and its potential impact on the Ethereum ecosystem and the $ETH market.
📌 One, EIP-7702: EOA Wallet Account Abstraction
EIP-7702 allows regular wallets (EOA) to have smart contract capabilities, introducing the following features:
Transaction Batching
Gas Sponsorship
Session keys and account recovery mechanisms
Supports Passkey login (i.e., biometrics and other WebAuthn)
📈 Impact Analysis:
This is an important step towards driving large-scale Web3 applications. It greatly lowers the barrier to using DApps, paving the way for experiences like 'gasless transactions' and 'one-click payments', directly boosting user growth and retention rates.
📌 Two, EIP-7691: Blob Expansion, Reducing Rollup Costs
This proposal increases the maximum number of blobs per block from 3 to 6-9, further reducing Layer 2 gas fees.
📉 Short-term impact:
Although friendly to L2 users, the fee revenue and ETH burn rate on the Ethereum mainnet (L1) will decline, potentially exerting deflationary pressure on the $ETH price in the short term.
📌 Three, EIP-7251: Increase Staking Cap to 2048 ETH
Stakers can increase from a maximum of 32 ETH to 2048 ETH, significantly reducing the number of validating nodes.
⚖️ Risks and Opportunities:
Although it improves staking efficiency and reduces network congestion, it also introduces centralization risks, favoring large staking platforms like Lido.
📌 Four, EIP-7623: Encourage Rollups to Fully Transition to Blobs
By increasing the cost of using traditional calldata, it guides Rollups to switch to blobs, reducing the burden of permanent on-chain data storage.
📉 Short-term impact:
Will accelerate Ethereum's transition to a 'modular architecture', but will also reduce L1 revenue, forming a deflationary weakening effect on $ETH.
📌 Five, EIP-7002: Execution Layer Control of Staking Withdrawals
Allows smart contracts to trigger staking withdrawals without the need for the validator to act personally.
🔁 Impact:
Increases automation and programmability of staking, particularly benefiting liquid staking protocols and restaking infrastructure.
📌 Six, EIP-7685: Enhance Communication Capability Between EL and CL
Enables smart contracts to send structured requests to the consensus layer (CL), bridging the data barrier between execution and consensus layers.
⚙️ Significance:
While it does not affect user experience in the short term, it paves the way for future restaking, modular validation, and other advanced features.
📌 Seven, EIP-2537: Native Support for BLS Signatures
Makes zk proofs, cross-chain bridges, and other operations faster and more efficient, enhancing cryptographic capabilities.
⚡ Long-term benefits:
Promotes the development of zkRollups and privacy applications, enhancing Ethereum's core competitiveness.
📌 Eight, EIP-2935: Increase Block History Access Capability
Allows contracts to query historical data from 8192 blocks ago, instead of the current limit of 256.
🔍 Impact:
Supports more complex light clients, cross-chain bridges, voting mechanisms, and other advanced use cases, enhancing ecosystem resilience.
📌 Nine, EIP-6110: Enhance Staking Entry Speed
Directly packages staking requests through system contracts, reducing validator entry waiting times.
📈 Potential Impact:
Increases staking participation, beneficial for ETH lock-up amounts to rise, indirectly supporting ETH prices.
📌 Ten, EIP-7549: Reduce Signature Data Volume
Optimizes the structure of validator signature messages, reducing network burden and improving zk verification efficiency.
🌐 Technical Significance:
Improves Ethereum's overall scalability, having a far-reaching impact on the Rollup ecosystem.
📌 Eleven, EIP-7840: Standardize Blob Management
Provides unified blob processing configuration for the execution layer, optimizing cost estimation and upgrade deployment.
🧰 Developer Benefits:
Improves the development experience for Rollups, increasing the predictability and security of upgrades.
Summary conclusions:
The PECTRA upgrade is a decisive step for Ethereum towards modularity, user-friendliness, and efficiency.
Although in the short term, due to decreased on-chain fees and a slower ETH burn rate, there may be some selling pressure on the ETH price. However, from a medium to long-term perspective, it lays a solid foundation for the following trends:
Widespread true account abstraction
Lower-cost L2 trading experience
Automated, efficient, and programmable staking system
More flexible infrastructure support
As these technologies gradually release value, the long-term growth foundation for ETH will become more solid. Short-term corrections are a prelude to long-term breakthroughs. Only investors who truly understand the underlying technical logic deserve the dividends of the next cycle.
