$ETH Ethereum has officially rolled out its highly anticipated “Pectra” upgrade, marking a major milestone for the world’s second-largest blockchain. The update went live on May 7, 2025, at the start of epoch 364032, around 10:00 a.m. UTC, and brings transformative changes to the network — from smart accounts to enhanced scalability and validator flexibility.
This upgrade incorporates three core Ethereum Improvement Proposals (EIPs): EIP-7702, EIP-7251, and EIP-7691 — each addressing a different aspect of Ethereum's growth and user functionality.
Smart Accounts Arrive with EIP-7702
Arguably the most revolutionary feature of the upgrade is EIP-7702, which allows externally owned accounts (EOAs) — the standard type of Ethereum wallet — to temporarily act like smart contracts. This change enables wallets to sponsor gas fees or use non-Ether tokens to pay transaction costs, offering more flexibility and potentially broader adoption.
Bigger Stakes with EIP-7251
Next up, EIP-7251 addresses a long-standing limitation for validators. It raises the maximum staking limit per validator from 32 ETH to 2,048 ETH, making it much easier for large-scale stakers to manage their operations without having to run multiple validator instances. This change improves efficiency and could incentivize further institutional involvement.
Scalability Boost from EIP-7691
Finally, EIP-7691 enhances Ethereum’s layer-2 scalability. By increasing the number of data blobs per block, this proposal allows more rollup data to be included, which in turn lowers transaction fees and enhances throughput across the ecosystem. This is particularly impactful for dApps and users relying on layer-2 solutions for cheaper and faster transactions.
Community Reaction and Developer Optimism
Ethereum co-founder Vitalik Buterin and several core developers have praised the upgrade as a critical step toward Ethereum’s long-term vision. Sergej Kunz, co-founder of DEX aggregator 1inch, called Pectra a leap forward, saying it "introduces smart account functionality at deeper protocol levels and improves Ethereum’s scalability."
What’s Next?
The Pectra upgrade sets the stage for more innovation within the Ethereum ecosystem. By improving user experience, validator participation, and network efficiency, Ethereum continues to evolve in response to growing demand and competitive pressures from alternative smart contract platforms.
Whether you're an investor, developer, or everyday user, Pectra represents a powerful step toward a more scalable, user-friendly, and robust Ethereum.
