- The Pectra upgrade of Ethereum brings smart accounts together with sponsored gas functionality.
- During this update, the validator staking limit grew from 32 ETH to 2,048 ETH.
- More data blobs per block boosts Layer-2 scalability according to EIP-7691
The Pectra upgrade launched on Ethereum’s Epoch 364032 on May 7, 2025. The Pectra upgrade incorporated three essential Ethereum Improvement Proposals (EIPs), delivering Layer-2 improvements, smarter accounts, better validator operations, and scalability options.
Pectra includes EIP-7702, EIP-7251, and EIP-7691. These proposed changes work together to transform Ethereum user interfaces through lower costs and expanded transaction possibilities.
The EIP-7702 feature provides an external account system that enables smart contract behavior from managed user wallets. EIP-7702 enables payment of transaction fees using alternatives to Ether through non-Ether tokens.
Through EIP-7251, the validator staking cap has been substantially increased from 32 ETH to 2,048 ETH; thus, validating operations can employ fewer nodes. Implementing EIP-7691 enables blockchain operations at lower costs while speeding up Layer-2 functions through enhanced data blob capacity.
How Smart Wallets and Sponsored Fees Will Change Ethereum for Users
Protocol-level features accompanied by the upgrade provide tailored capabilities for individual retail and institutional users. Integrating smart account functionality into protocol-level architecture has made new user tools possible. However, the upgrade enables three main features: smart wallets and batch transaction processing supported by smart sessions. Smart contracts equipped with sponsored gas let users access transaction fee coverage provided by third-party sponsors.
During a developer session, Pedro Gomes from WalletConnect stated that implementing smart accounts would simplify access to decentralized application penetration. In addition, end users will have better access to Web3 services with reduced cost restrictions. The adjustments are predicted to reduce mainnet friction and heighten network activity.
Decentralized exchange aggregator 1inch reports that Ethereum’s functionality received improvements. The implementation of ETH 2.0 includes embedded native capabilities, which were previously accessible only through multiple smart contracts. Development teams can construct applications utilizing better transaction efficiency, which results from deploying this update.
Blobs, Burns, and Better Fees: What the Data Reveals After the Upgrade
Ethereum’s Blob transactions show continuous growth in usage levels. The pre-upgrade usage of blobs consumed 84 to 100 ETH daily. EIP-7691 enables Layer-2 chains to handle more data by reducing their associated fees. With this update, it can expand its processing capabilities without compromising security protocols.
However, the key reason behind ETH fee burns is that Blob-based transactions dominate fee consumption. The upgrade will motivate Layer-2 networks to return their workload to Ethereum’s mainnet. Ethereum’s competitive advantage against competing networks grew stronger after the upgrade introduced features to decrease costs.
Ethereum Price Movement Cools as Traders Eye New Market Signals
Ethereum moved to $1,823.80 per token during the upgrade with a 0.07% dip. Blockchain trading activity decreased, which led to reduced market volatility. Analytical experts observe the reduced market movement as an indication that selling momentum may weaken.
The Relative Strength Index showed a reading of 37.01 while approaching the “oversold” level. The cross of the MACD line under the signal line showed that the upward price momentum was waning.
