Why are Ethereum updates like Pectra as pivotal as the halving update in Bitcoin?
In the world of Bitcoin, halving is a massive economic moment. Every four years, the number of bitcoins distributed to miners is cut in half, creating a 'supply crisis' that drives the price up. Simply put, every halving opens a new market cycle, attracts institutional attention, and re-prices the asset.
As for In Ethereum, there is no automatic halving. But there are pivotal moments of a different kind: updates that reshape the network from within.
The most notable of these was:
The Merge (2022): Transitioning the network from proof of work to proof of stake.
Shanghai (2023): Enabling the possibility of withdrawing stakes.
Dencun (2024): Reduced layer two fees through proto-danksharding technology.
And today, on May 9, 2025, it is Pectra's turn.
Pectra: A turning point for the market
After the successful live test on Gnosis at the end of April, the Pectra update was activated on the Ethereum network with no reported glitches. Trust immediately increased, and the market clearly responded: the price of $ETH rose to $2490.
This update combines 11 major improvements including network implementation and compatibility. The most important among them:
EIP-7702: Regular wallets can now temporarily act as smart contracts, with the ability to pay gas in stablecoins like USDC.
EIP-7251: Increased the deposit limit to 2048 ETH per validator, reducing the number of nodes and lowering operating costs.
EIP-7594: Doubled the size of blob data, reducing layer two fees.
EIP-7002 and EIP-6110: Withdrawing stakes has become faster and more flexible.
Why is this update really important?
The technical success in the Gnosis test gave developers the green light, after the Sepolia and Holesky networks stumbled.
The markets got the message: the update improves network efficiency without affecting liquidity as happened after the Shanghai update.
But the most important thing is that the user experience has fundamentally changed:
There is no longer a need to own ETH to pay gas fees. This feels more like a Web2 experience than ever before, opening new doors for broader adoption.
Immediate effects:
DeFi: Smart wallets will proliferate more, opening new opportunities for Web3 platforms.
Staking: Consolidating balances reduces costs and increases efficiency.
Layer twos: Lower fees enhance competition to attract users and developers.
What to watch for in the coming days:
Support for smart wallets like Safe and Argent for EIP‑7702.
Response of LST protocols like Lido and Rocket Pool to raise the upper limit of validators.
The evolution of layer two network fees after the update was applied.
Just as halving changes the supply dynamics in Bitcoin... Ethereum updates change the entire operating logic.
But if paying fees in stablecoins becomes the norm... are we approaching a network where no one needs to own ETH at all?