Pectra upgrade launches on May 7 with 11 major EIPs.
Wallets become smarter, making staking more flexible.
Layer 2 throughput doubles, reducing transaction fees.
Ethereum is preparing for its biggest upgrade since The Merge in 2022. On May 7, 2025, the network will officially activate the Pectra upgrade, a combined initiative involving the Prague (execution layer) and Electra (consensus layer) updates. The goal: improve speed, wallet usability, and staking efficiency for millions of users worldwide.
Pectra incorporates 11 Ethereum Improvement Proposals (EIPs) and promises a smoother blockchain experience. “Update your nodes,” urged Ethereum developer Parithosh Jayanthi after announcing the upgrade’s readiness following successful testing on three major testnets: Mekong, Holesky, and Hoodi.
Smarter Wallets and Simpler Staking
A major highlight is EIP-7702, which brings account abstraction to Ethereum wallets. This lets users pay gas fees in tokens like USDC, batch transactions, and use “session keys” for dApps, making DeFi, gaming, and payments far more user-friendly. Staking also sees big changes with EIP-7251, which raises the staking cap from 32 ETH to 2,048 ETH. Large validators can now streamline their operations, while EIP-7002 allows easier exits and faster withdrawals. While these updates help simplify staking, concerns about centralisation have emerged.
Scaling Up for the Future
Ethereum is boosting Layer 2 throughput with EIP-7691, doubling data blobs per block from 3 to 6. This could raise transaction speeds to 420 TPS, cutting fees for chains like Arbitrum and Optimism. Further improvements are planned for the Fusaka upgrade later in 2025.
With Pectra, Ethereum positions itself for broader adoption while preparing for its next leap: the Fusaka upgrade. As of early May 2025, Ethereum (ETH) is trading below $2,000, having experienced a decline of over 40% from its 2024 highs. The market remains cautious amid broader crypto volatility, but optimism is growing around Pectra’s potential. Analysts suggest that the upgrade’s improvements to wallet usability, staking, and scalability could enhance user experience and drive renewed investor interest. If successful, Pectra might provide the momentum Ethereum needs to reclaim higher valuations in the months ahead.