🔧 What is the Pectra upgrade?
Pectra combines two key upgrades:
• Prague: a hard fork of the execution layer.
• Electra: an improvement in the consensus layer.
Together, they incorporate 11 Ethereum Improvement Proposals (EIPs), the largest number implemented in a single upgrade to date.
🧩 Key improvements
• Reduction in transaction costs: an estimated decrease of approximately 20%, making Ethereum more attractive for decentralized finance (DeFi) applications.
• Improvements in user experience: smart contract functionalities have been introduced in wallets, making them easier to use and recover.
• Increase in staking participation limit: the limit per validator was raised from 32 to 2,048 ETH, allowing large participants to operate more efficiently.
📈 Impact on ETH price
After the upgrade, the price of ETH has shown an upward trend. As of May 10, 2025, ETH is trading around $2,500 with a 4.2% increase in the last 24 hours. This increase also coincides with a surge in the altcoin market, where Ethereum has gained 13% and other cryptocurrencies like Solana (SOL) and Cardano (ADA) have also shown significant gains.
🔮 Future outlook
Although the Pectra upgrade has improved the network's efficiency and usability, some experts believe it will not be enough to drive an immediate increase in the price of ETH. However, it is expected to lay the groundwork for more significant future improvements.