Ethereum is entering an important testing phase with the Hooli testnet, paving the way for the Pectra upgrade – one of the largest improvements in Ethereum since The Merge. If all goes smoothly, Pectra could officially launch on the mainnet on April 25.
However, despite this event, the price of ETH has not fluctuated much, only increasing slightly by 0.5% in the past 24 hours, currently trading at over 1,900 USD, according to data from CoinGecko.
Pectra: What Improvements for Ethereum?
The upgrade #pectra focuses on three main factors:
Scaling and optimizing transaction fees: Pectra helps layer-2 networks store data more efficiently, contributing to reduced gas fees on Ethereum.
Increasing flexibility for staking: The staking limit will increase from 32 ETH to 2,048 ETH, allowing validators to stake more and improve their ability to withdraw staked ETH.
Supporting flexible gas fee payments: Users can pay gas fees with various tokens, including stablecoins like USDC. At the same time, Pectra allows third parties to cover gas fees, which is crucial for layer-2 scaling solutions.
Improved wallet security: Introducing the 'social recovery' feature, allowing users to rely on a trusted contact list to recover their wallet if they lose access keys.
Hooli Testnet: Hope to Resolve Old Issues
Before Hooli, #Ethereum tested Pectra on two other testnets, Holesky and Sepolia, but both faced technical issues. Holesky even experienced an increase in invalid blocks, forcing the development team to seek alternative solutions.
Hooli will officially launch on March 17, aiming to test and optimize Pectra before deploying it to the mainnet. If the test results are promising, Ethereum could proceed with the upgrade on the mainnet by the end of April.
ETH Price Left Behind, While Rivals Rise
Although Pectra is considered one of the most important upgrades in Ethereum's history, the market seems less than enthusiastic. While ETH fell 13.3% in the past week, partly due to macroeconomic pressures from President Trump's trade war, other competitors have made significant advances.
According to data from TradingView, over the past year, Ethereum has lost 52% of its market share in total market capitalization, creating opportunities for coins like XRP to increase by up to 258.98%.
This has divided the crypto community, with one side arguing that Ethereum is developing too slowly, while supporters believe that 'slow and steady wins the race.'
The Future of Ethereum: Breakthrough or Continued Lag?
Ethereum remains the largest smart contract platform today, but its slow development pace and stagnant ETH price are raising significant questions in the community.
If the Hooli testnet is successful, Pectra could help Ethereum compete more strongly with other blockchains by reducing transaction fees and enhancing the staking experience. However, if Ethereum continues to miss deadlines or faces technical issues, this could pave the way for rival blockchains like Solana or Avalanche to surge ahead.
With the current testing schedule, the answer will be clearer after April 25. Can Pectra help Ethereum regain its position, or will it continue to be criticized for its slow progress?
