Another key change is EIP-7251, which raises the staking limit for validators from 32 ETH to 2,048 ETH—a 64-fold increase.

This adjustment streamlines staking operations for both individual and institutional validators, reducing operational complexity and encouraging greater participation in Ethereum’s proof-of-stake system.

Additionally, Pectra doubles the number of data “blobs” Ethereum can handle, building on the Dencun upgrade of March 2024 to keep transaction fees on Layer 2 (L2) blockchains affordable.

These enhancements aim to bolster Ethereum’s scalability, particularly for rollups, which are critical to the network’s Layer 2 ecosystem.

Despite a rocky development journey, including failed testnet deployments on Holesky and Sepolia due to configuration issues, the successful Hoodi testnet in March 2025 paved the way for Pectra’s mainnet launch.

Ethereum Foundation researcher Justin Drake confirmed that validators are already configured for post-Pectra efficiency measures, such as a 60 million gas limit expansion to boost transaction throughput.

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Market Impact And Investor Sentiment

The market’s response to Pectra was swift and decisive. ETH’s price, which had been trading around $1,830 before the upgrade, surged to over $2,400 on Friday morning, recording the strongest single-day increase since 2021 on Thursday.

Trading volumes spiked by nearly 46%, driven by heightened activity in the Ethereum Virtual Machine (EVM), which Pectra has made faster, cheaper, and more scalable.

The upgrade also triggered a surge in network activity, reducing ETH’s circulating supply to an 18-day low of 120.69 million ETH, creating upward price pressure.

Analysts attribute the rally to renewed confidence in Ethereum’s technical roadmap.

Posts on microblogging site X echoed this sentiment, with users highlighting Pectra’s potential to unlock mass adoption through faster transactions, lower gas fees, and improved scalability.

However, some market watchers remain cautious, noting that ETH futures premiums remained flat at 3% post-upgrade, signaling a lack of aggressive bullish bets from leveraged traders.

Additionally, Ethereum-based ETFs have seen $16.11 million in net outflows since January 2025, reflecting institutional hesitation.

Ethereum’s Upgrade Legacy

Pectra builds on a decade of Ethereum upgrades, each addressing critical limitations.

The 2022 Merge transitioned Ethereum from energy-intensive proof-of-work to proof-of-stake, slashing its carbon footprint by 99.95%.

The 2024 Dencun upgrade reduced Layer 2 transaction costs, making rollups more viable for decentralized applications (DApps).

Since its launch, Ethereum has undergone approximately 20 major upgrades, with Pectra marking a continuation of its commitment to scalability, security, and decentralization.

However, Pectra’s immediate impact on DApp interoperability remains limited.

Unlike Solana (CRYPTO: SOL) or BNB Chain (CRYPTO: BNB), Ethereum’s Layer 2 ecosystem still faces challenges in seamless asset and data bridging, which may explain why ETH has struggled to reclaim its March 2025 high of $2,200.

Analysts suggest that a surge in DApp and network activity could drive further price recovery, potentially pushing ETH toward $3,000 if bullish momentum persists.

What Lies Ahead

As Ethereum charts its path forward, Pectra sets the stage for future upgrades like Fusaka, which will further refine Layer 2 and Layer 3 scalability.

The upgrade has already spurred staking activity, with 627,000 ETH staked since mid-February 2025, reversing a pre-Pectra decline.

Companies like BTCS Inc. are leveraging Pectra to roll out initiatives like the Staker Protection Plan, aimed at improving transaction inclusion and regulatory compliance.

While Pectra’s technical achievements are undeniable, its long-term impact hinges on market adoption and developer innovation.

For now, Ethereum’s 20% surge underscores the market’s faith in its evolution as the leading smart contract platform.

As one X user put it, “Pectra is where Ethereum starts feeling like a modern network”.

Whether this upgrade marks ETH’s breakout moment remains to be seen, but for the first time in years, Ethereum is back in the spotlight.

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This article Ethereum Explodes 25% Higher To $2,400, Notches Largest 1-Day Gain In 4 Years originally appeared on Benzinga.com