Ethereum developers are set to launch a major Pectra update on May 7, 2025, designed to lower transaction fees and enhance blockchain functionality. This upgrade will enable users to execute complex transactions via digital wallets, greatly simplifying their interactions with the network.
While the update will improve network efficiency, Edward Chin from Parataxis Capital believes it is unlikely to have a major impact on the ETH token. The current landscape requires more measures to be taken to encourage platform usage, he says. The new staking system developed by the team aims to alleviate network congestion by attracting more support from independent nodes.
Coinbase's Tom Vieira adds that the enhanced Layer 2 bandwidth will make the Ethereum ecosystem more competitive with faster networks like Solana. It also spiffs up the wallet's smart contracting functionality, enabling the use of modern authentication techniques.