$ETH Ethereum's latest upgrade, known as "Pectra," was successfully activated on May 7, 2025. This significant overhaul combines two major improvements: the Prague execution layer hard fork and the Electra consensus layer upgrade. Together, they introduce 11 Ethereum Improvement Proposals (EIPs) aimed at enhancing the network's scalability, staking efficiency, and user experience .

Key highlights of the Pectra upgrade include:

Increased Validator Stake Limits: The maximum effective balance a validator can stake has been raised from 32 ETH to 2,048 ETH, allowing for more flexible and efficient staking strategies .

Enhanced Wallet Functionality: Account abstraction has been implemented, enabling wallets to function more like smart contracts, thereby improving usability .

Improved Speed and Cost-Efficiency: The upgrade aims to reduce transaction costs and enhance the overall speed of the network, making it more competitive with other blockchains .

Following the Pectra upgrade, Ethereum's price surged by over 50% in May 2025, reflecting increased investor confidence and renewed interest in the network's long-term potential .