Source: coinmetrics
Compiled by: Blockchain in Plain Language
Key Points:
Ethereum's Pectra upgrade launched on May 7, increasing the maximum effective balance for validators from 32 ETH to 2048 ETH (EIP-7251) and doubling blob space to support Layer-2 scalability (EIP-7691).
Over 11,000 validators have completed merging, with the number of active validators decreasing by about 16,000, while the total staked ETH remains constant, and the average amount staked per validator increases to about 32.4 ETH.
The number of blobs released on Ethereum increased from about 21,000 to 28,000, but rollup demand still falls short of the new target of 6 blobs per block.
As blob fees approach zero, Layer-2 transaction volumes are increasing, and transaction costs are decreasing. If blob demand increases, fees may rise.
Introduction
Ethereum's Pectra hard fork successfully launched on May 7, bringing multiple improvements for validator operations and staking flexibility, enhancing user experience (UX) through smart accounts, and supporting Layer-2 scalability. Pectra includes 11 EIPs (Ethereum Improvement Proposals) and is another significant milestone on Ethereum's roadmap following the Beacon Chain, The Merge, Shapella, and Dencun.
In this issue (Coin Metrics Network Status), we analyzed the early impacts of Pectra, focusing on how increasing the maximum effective balance and doubling blob space affect staking dynamics and the Layer-2 ecosystem, while highlighting key changes in relevant Ethereum metrics post-upgrade.
Staking and Validators
A primary goal of the Pectra upgrade is to optimize validator operations and provide users participating in Ethereum's Proof of Stake (PoS) system with more flexibility. EIP-7251 increased the maximum effective balance for validators from 32 ETH to 2048 ETH, a change that could reshape the network's economy. Stakers can now add stakes to existing validators or merge multiple validators into one to more efficiently earn compound rewards.
Maximum Effective Balance Increase (EIP-7251)
To understand the impact of this change, let's look at the actual operational flow of validator merges:
Update Withdrawal Credentials: Update withdrawal credentials to type 0x02, indicating support for validator merges.
Select Validators: Determine the source validator (to be merged) and target validator (to receive effective balance).
Submit Merge Request: After submitting the request, the source validator enters the exit queue (for voluntary exit and merging) as the number of exits or merges per epoch is limited.
Complete Merge: After the source validator reaches an extractable time slot, it exits the active validator set, and its effective balance is transferred to the target validator, completing the merge.
Data Source: Coin Metrics Network Data Pro
The above chart shows the number of validators successfully merged (added to the active set) and the total ETH merged. Since the launch of the Pectra hard fork, as of May 25, a total of 11,150 validators have completed merges, merging 359,146 ETH.
Impact on Validators and Staking Economics
Due to merges and exits, the number of active validators has decreased by 16,344, reflecting a net reduction post-Pectra. This may be related to EIP-7002, which optimizes and accelerates the validator exit process. The number of active validators is starting to decouple from the total staked ETH, as staked amounts increasingly concentrate among fewer validators with higher balances.
This not only improves the capital efficiency of stakers but also reduces the network overhead and peer-to-peer communication load caused by a large number of validators.
Data Source: Coin Metrics Network Data Pro
The average ETH staked per validator has slightly increased from about 32 ETH to approximately 32.4 ETH, with most validators' effective balances still below 128 ETH. As more operators merge their stakes to increase ETH utilization, this average is expected to rise further, and the distribution of validator sizes will change accordingly.
Blob Expansion and Layer-2
Doubling Blob Throughput (EIP-7691)
Another focus of the Pectra upgrade is to support Layer-2 scalability by doubling Ethereum's blob throughput. Blobs, introduced as a cost-effective data availability solution in the Dencun upgrade, are central to Ethereum's scalability roadmap.
Through EIP-7691, the blob target increased from 3 to 6 (green line), and the cap increased from 6 to 9 (red line), effectively increasing the supply of blob space. This means Layer-2 has greater transaction capacity and lower data availability costs.
Data Source: Coin Metrics Network Data Pro
After Pectra launched, the daily blob count released by rollups increased from about 21,300 to around 28,000 (4 blobs per block). This means that the blob space used daily post-upgrade rose from 2.7 GB to about 3.4 GB. On an hourly basis, the average number of blobs per block is approaching the new target of 6, with Layer-2 transaction demand on the rise.
However, due to utilization still being below the new targets, blob fees are extremely low. Since Pectra, blob distribution shows that over 40,000 blocks did not contain blobs, while approximately 52,000 blocks contained 6 or more blobs, indicating room for growth.
Data Source: Coin Metrics Network Data Pro
When the number of blobs submitted per block exceeds the target (typically during high demand or congestion), the blob fee market will activate, leading to increased blob fees (and Layer-2 costs). Additionally, EIP-7623 implemented in Pectra incentivizes rollups to adopt lower-cost blob space by increasing calldata costs.
Impact on Layer-2
The increase in blob supply directly reduces rollup costs. Average blob fees have further decreased, becoming more predictable, making it almost free for rollups like Base, Arbitrum, and Optimism. Consequently, the total blob fees paid by Layer-2 dropped to $0.00001 (approximately 4 gwei). Lower costs yield better profit margins for Layer-2 while supporting more transactions on-chain.
Data Source: Coin Metrics Network Data Pro
Throughput for Layer-2 solutions like Base and Optimism increased, with transaction volumes soaring from 8 million to 14 million, similar to the impact observed when blobs were introduced during the Dencun upgrade in March 2024. To capture more value from blob fees, rollups need to gradually increase blob consumption, pushing towards the new threshold of 6 blobs per block.
Data Source: Coin Metrics Network Data Pro
Conclusion
Pectra is an important step for Ethereum to become a globally accessible settlement layer, reflecting the ongoing evolution of the protocol. While not as prominent as previous upgrades, this feature-rich hard fork provides greater flexibility and efficiency for the staking ecosystem, making it more future-proof and institutionally ready, while laying the foundation for improved scalability and user experience (UX).
Early indicators show that validator merges are underway, and blob usage in Layer-2 is increasing, but many anticipated economic and scalability changes will gradually emerge. Pectra may not have made headlines, but it quietly lays the groundwork for the next round of adoption and growth for Ethereum.
