Shock is Coming - Will Ethereum's Upgrade Today Follow Historical Trends or Exceed Expectations?

The Ethereum Pectra network upgrade is scheduled for today (Beijing Time, May 7, 2025, at 6 PM).

⚡️Historically, Ethereum upgrades have always led to a sharp drop, including the 2022 Ethereum Merge, the 2023 Shanghai Upgrade, and the 2024 Cancun Upgrade, all of which dropped sharply on the day of the upgrade.

The historical pattern is: sharp rise before the upgrade → post-upgrade recovery → decline during the upgrade.

The Pectra upgrade is like installing a "new engine" for Ethereum, making transactions cheaper, operations simpler, and staking more flexible, while also paving the way for future expansions (like sharding). It won’t cause an immediate surge in ETH prices, but it will make Ethereum more user-friendly, attracting more users and developers.

Specifically, this is the largest upgrade since the 2022 Merge -- Pectra.

1⃣ More Convenient Wallets

· Multiple transactions can be bundled into one, saving money and time (no need for separate signatures, saving gas fees)

· Wallets can be recovered even if the private key is lost

· Other tokens can be used to pay transaction fees (not just ETH, but DAI, USDC, etc.)

2⃣ More Flexible Staking

· Staked ETH can be easily removed, reducing wait times

· Increased the staking cap for ETH (from a maximum of 32 to 2048), making it more convenient for both large institutions and individuals

3⃣ Cheaper Layer 2 Transaction Fees

The blob capacity increased from 3 to 6, reducing transaction fees.

4⃣ More Efficient Network

Optimized validation nodes, introduced new data structures, reducing network congestion.