#PectraUpgrade
The Ethereum Pectra upgrade, activated on May 7, 2025, marks the most significant overhaul of the Ethereum network since the 2022 Merge. This comprehensive update integrates 11 $ETH Ethereum Improvement Proposals (EIPs) aimed at enhancing scalability, user experience, and staking efficiency.
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š Key Features of the Pectra Upgrade
1. Smart Accounts (EIP-7702)
This proposal introduces "account abstraction," allowing regular Ethereum wallets (Externally Owned Accounts) to function like smart contracts during transactions. Benefits include:
Transaction Batching: Execute multiple operations in a single transaction, reducing fees and complexity.
Gas Sponsorship: Applications can cover transaction fees on behalf of users, facilitating easier onboarding.
Enhanced Security: Support for modern authentication methods like biometrics and passkeys.
Spending Controls: Set limits on application spending and daily withdrawal caps, akin to traditional banking features.
2. Increased Validator Staking Limits (EIP-7251)
The maximum stake per validator has been raised from 32 ETH to 2,048 ETH. This change streamlines staking operations, especially for large validators, by reducing the need to manage multiple validator nodes. The minimum staking requirement remains at 32 ETH, ensuring accessibility for smaller participants.
3. Enhanced Scalability (EIP-7691)
This proposal doubles the number of data blobs that can be processed per block, significantly increasing data throughput. The enhancement particularly benefits Layer-2 rollups, leading to lower transaction costs and faster processing times.
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š Impact on $ETH Ethereum's Ecosystem
While the Pectra upgrade brings substantial technical improvements, its immediate effect on Ethereum's price has been modest. ETH experienced a slight uptick of approximately 2.7% post-upgrade, trading around $1,822, but remains significantly below its all-time high of $4,105.90 reached in November 2021.
