Ethereums Pectra upgrade set to go live on May 7

Ethereum developers have locked in May 7, 2025, as the launch date for the networks next major upgrade, Pectra.

The decision was made during a core developer call on Apr. 3, following a successful test on the Hoodi testnet, Pectra upgrades third and final dry run. The Hoodi testnet is now ready to go live on mainnet after developers fixed bugs that caused delays earlier.

Pectra combines two significant upgrades, Electra and Prague, into a single release. It features 11 Ethereum (ETH) Improvement Proposals, which will help to improve the networks speed, security, and user experience. Ethereum wallets will be able to use smart accounts thanks to one major update. Smart wallets are easier to use and recover if users lose access.

Another notable improvement is EIP-7251, which raises the staking limit per validator from 32 ETH to 2,048 ETH. This update is expected to simplify staking for institutions and large holders by reducing the need to run multiple validator nodes.

It also introduces other important features such as Peer Data Availability Sampling, which allows nodes to validate transaction data without storing everything, and Verkle Trees, which help the network to store data more effectively.

Although Ethereum is making progress in its development, its market performance has been poor. As of this writing, ETH is trading at $1,804 after a 45% in the first quarter of 2025.

Revenue from transaction fees fell from $142 million in January to just $21 million in March, as per DefiLlama data. In addition, Ethereums burn rate has dropped to its lowest point since August 2021, and since the EIP-1559 upgrade, the overall supply has grown by 3%.

Despite these declines, Ethereum surpassed BNB Chain (BNB) and Solana (SOL) in March in terms of decentralized exchange volume, recording $64 billion. Developers believe that the Pectra upgrade will help the network attract new users and boost market confidence.