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What happened?
Ethereum developers have scheduled the launch of the Pectra upgrade mainnet for May 7, 2025. The upgrade combines previous enhancements, Electra and Prague, to improve scalability, wallet functionality, and transaction processing. This development marks a significant advancement for Ethereum, addressing previous testing issues and introducing new features like smart accounts.
Who does this affect?
This upgrade affects Ethereum users, especially those involved in staking and using Ethereum wallets. Institutional investors can now participate more significantly due to the increased staking cap, while casual users will benefit from improved wallet recovery options. Developers and projects on the Ethereum network will also be impacted as they adapt to and utilize the enhanced scalability and new functionalities.
Why does this matter?
The Pectra upgrade could have significant market impacts by potentially attracting more institutional capital into Ethereum through increased staking limits. Although the ETH price has dropped recently, the upgrade promises improvements that might boost investor confidence and stimulate a price recovery. Market sentiment might also be influenced by the global impact of political events, such as tariffs, which have previously affected Ethereum’s value.
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