In May 2025, Ethereum is set to launch one of its most anticipated upgrades: Pectra. This implementation, which combines the technical advances of the Prague and Electra versions, aims to take the network to a new level of scalability, efficiency, and security.

The big question looming over the market is: Will this technical improvement finally boost the price of ETH?

What is the Pectra upgrade?

Ethereum has been the leading network for smart contracts for years, but not without challenges: high fees, slow speeds during times of high demand, and a less-than-smooth user experience. The Pectra upgrade aims to address these pain points with a series of key improvements:

  • Sharding: it will allow the network to be divided into smaller parts (shards), facilitating the parallel execution of transactions and increasing the total processing capacity.

  • Layer-2 Solutions (Rollups): by moving some transactions off the main network, rollups help to unclog Ethereum, reducing costs and speeding up the system.

  • Improvements in Proof of Stake (PoS): the consensus mechanism implemented with The Merge will be refined with cryptographic enhancements, reinforcing the security and efficiency of the network.

The goal is clear: a more agile, cheaper, and attractive network for users and developers.

How could this impact the price of ETH?

Although the crypto market shows signs of recovery in 2025, ETH remains lagging. In May, it was trading around USD 1,800, far from its peak of over USD 4,000 reached in previous cycles.

Analysts debate whether Pectra will be the key factor to reverse this trend. Two elements could play in its favor:

  • Increase in demand: if the network improves its experience, it could attract new users, increasing transaction volume — and with it, the demand for ETH.

  • Reduction in supply: by incentivizing staking, Pectra can remove ETH from circulation, creating upward pressure due to lower available supply.

What do experts say?

There is no consensus. While some analysts believe that Pectra will not generate immediate impacts on price, others consider that it could mark a turning point if the macroeconomic context also supports it.

It is worth noting that past upgrades, such as The Merge or Shapella, generated temporary spikes. The difference now is that the market seems more mature and open to recognizing or punishing technical deliveries based on their real impact.

And how does Pectra compare with other blockchains?

Solana, BNB Chain, and other networks have gained ground due to their low cost and high speed. Pectra aims to close that gap, especially through L2 solutions and improvements to PoS.

If Ethereum can deliver a competitive experience, it can regain ground against these platforms, especially in sectors like DeFi, RWAs, and gaming, where it still maintains a solid base.

A new cycle for Ethereum?

If all goes well, Ethereum will not only become more efficient but could also consolidate itself as the central infrastructure for Web3 development. Improvements in scalability and usability not only address the current pain points of the network but also allow for the building of more advanced, accessible, and efficient decentralized applications (dApps). This, in turn, could increase its market value as more projects and users adopt the network.

Additionally, with the growing interest in Real World Assets (RWAs) and the rise of decentralized finance (DeFi), Ethereum is poised to take advantage of this trend, especially if improvements in its Layer-2 solutions allow for greater flexibility and increased transaction capacity. Strengthening the network would also facilitate mass adoption of smart contracts, something that has been limited by high gas fees and network congestion in the past.

That said, the behavior of the ETH price also depends on a series of external factors such as global monetary policies, institutional adoption, and market risk appetite. The evolution of Ethereum will be influenced not only by its technical evolution but also by the economic context and the response of the global market.

Will Pectra be the start of a new phase for Ethereum?

The answer to this question will likely take some time, but it is clear that Ethereum is taking solid steps toward greater efficiency and scalability, which could give it a significant competitive advantage in the race to dominate the crypto ecosystem. If Pectra manages to deliver the promised improvements, it is possible that ETH will regain its prominence and enter a new phase in its history, similar to the periods of great boom it experienced in previous years.

The adoption of Ethereum by major investors and developers could increase significantly, especially if the network facilitates the creation of new projects in emerging areas such as artificial intelligence, DeFi, tokenization of real assets, and other innovations within Web3.

With all this in mind, Ethereum faces a promising future, but it depends on maintaining its course and continuing to adapt to an increasingly competitive market. As other platforms continue to evolve, Ethereum will need to demonstrate that it is not only capable of technological improvement but also of remaining relevant in a mass adoption environment. If it achieves these goals, ETH could return to a path of sustained growth that ensures its place in the future crypto ecosystem.

#Ethereum #pectra #ETH #PectraUpgrade

---

Image available on Freepik