$5,000 Calling: Will Pectra Lift Ethereum To Its Next All-time High?
After losing more than half its value for the year-to-date, sagging Ethereum (ETH) could be readying for a resurgence.
On May 7th the number two blockchain’s long-awaited Prague-Electra (Pectra) upgrade will leave the testnet and move to go-live. It promises to improve user experience, enhance network efficiency, lower gas fees and make life easier for institutions looking to bring assets and services into the DeFi ecosystem.
Removing barriers to entry for TradFi is crucial. Pectra accommodates bigger staking positions by reducing the need for multiple network nodes. With a less onerous process, Ethereum caretakers hope to create stronger liquidity lockups and an environment conducive to whale movement.
If institutional investors can reduce cost/effort and the overall user experience improves, on-chain activity should rise, lifting Ether’s price in the process.
Or so the thinking goes. Will Pectra’s improvements return ETH to its all time high of $4,700 – and beyond? Ethereum’s post-upgrade price curve will be one of 2025’s crypto market metrics to watch.
Understanding Pectra
Ethereum’s latest re-tooling activates 9 individual Ethereum Improvement Proposals (EIPs) wrapped together in two packages called Prague and Electra.
The EIPs in Prague focus on Ethereum’s execution layer, while Electra’s package of changes address the consensus layer.
Together they build on previous attempts at enhancing network efficiency via ‘danksharding,’ a mechanism for improving scalability, and rollups, …
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