The Pectra upgrade of Ethereum is expected to boost the network's scalability

According to PANews, the Bollinger Bands indicator for the ETH/BTC exchange rate has tightened to the narrowest level since June 2020, indicating potential market volatility. This technical signal appears just before the scheduled Pectra upgrade of Ethereum on May 7, aimed at enhancing network scalability and the efficiency of validators. This upgrade will increase the maximum staking limit for each validator from 32 ETH to 2048 ETH and expand the number of 'blob' data units per block from 3 to a maximum of 9. Additionally, Pectra will introduce the EVM Object Format (EOF) to optimize smart contract structure.

The analytics company Nansen emphasizes that the Pectra upgrade will provide significant benefits to Layer 2 networks by expanding blob capacity, reinforcing Ethereum's role as a data provision layer, and enhancing the scaling strategy focused on Rollup. Sectors such as DeFi, NFTs, and blockchain gaming are also expected to benefit from this upgrade.