The recently held Ethereum Pectra update, launched on May 7, 2025, led to a record price increase of $ETH by 20% — the largest one-day jump since 2021! The price of Ether rose above $2,200, signaling a restoration of investor confidence in the project.

What is the Pectra update?

Pectra is the most ambitious Ethereum update since the transition to Proof-of-Stake in 2022. It combines the Prague hard fork at the execution level and the Electra update at the consensus level. This is the 16th major update of the network and the first after Dencun (March 2024).

Key improvements in Pectra:

1. Revolution in staking (EIP-7251)

  • Increase of staking limit from 32 to 2048 ETH

  • Instead of managing multiple validators, funds can be consolidated in one node

  • Optimization for institutional investors and staking providers

2. Smart accounts through EIP-7702

  • Regular wallets (EOA) gain smart contract functions

  • Ability to pay fees in stablecoins instead of ETH

  • Restoration of access to the wallet in case of key loss

  • Automatic payments and transaction delegation

3. Increased throughput for L2 solutions

  • Increase in the number of blobs from 3 to 6

  • Reduction in fees and increase in speed for L2 networks

  • Increased competitiveness of Ethereum against other blockchains

Impact on the market and ecosystem

After the activation of Pectra, ETH showed impressive growth, which may signal the beginning of a broader altcoin rally. According to several analysts, Ethereum is starting to catch up after lagging behind Bitcoin in the first half of the year.

"ETH is finally catching up after lagging behind BTC for most of the year. The Pectra update helped restore investor confidence," analysts note.

Prospects for Ethereum in 2025-2026

According to various forecasts, the price of Ethereum could reach $4,000-6,000 by the end of 2025. Key factors that could influence growth:

  • Increased usability due to the Pectra update

  • Increased institutional adoption due to staking optimization

  • Growing ecosystem of L2 solutions with lower fees

  • Growth in DeFi volumes and new applications on Ethereum


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How do you assess the potential of Ethereum after the Pectra update? Will you invest in $ETH in the near future?

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