Exciting news for Ethereum in 2025 as developers will release the Pectra upgrade

Ethereum’s upgrades set the bar high for blockchain development. The Merge ensured the consensus migration from proof-of-work PoW to proof-of-stake (PoS), while Shapella allowed users who staked their Ether to withdraw it. The latest upgrade, Dencun, managed new data storage capabilities and lowered fees within the Layer-2 ecosystem.

These updates contributed considerably to Ethereum’s increasing value and pioneering nature, eventually impacting the ETH coin price as well. For example, Ether rallied during the Merge time frame due to bullish investor sentiment, as Ethereum proved to become a digital asset that brings long-term value.

The following updates also had an impact on Ethereum’s brand image and importance as a blockchain technology. But this is only the beginning, as 2025 will bring newness with the Pectra update. Here’s what it’s about.

What’s the Pectra update about?

The Pectra upgrade consists of several Ethereum Improvement Proposals (EIPs) that will tackle subjects like wallet user experience, speed, and efficiency. For example, through the EIP-7702, wallets will become programmable like smart contracts, simplifying the process of account abstraction on Ethereum.

Pectra also includes EIP-7251, through which validators will be able to stake from 32 to 2,048 ETH. This will strengthen network security and streamline the process of setting up nodes. Considering that developers decided to split the update into two main packages, the first will include eight EIPs and is supposed to be released in Q1 2025.

The fork update split is established to reduce deployment risk since Pectra is a highly complex update. Therefore, the second part of the update is expected to settle in 2026, where technical improvements will be targeted. Smart contracts will become more efficient, the EVM Object Format (EOF) will be introduced, and Layer 2 scalability will receive a major boost in performance.

On Verkle trees and PeerDAS

Since the final update includes a vast array of improvements, more aspects of the network will be in development. For example, Verkle trees will help with Ethereum’s scalability, verification process and compact proofs.

Verkle trees require less blockchain data to be stored by nodes, pushing for fast network speeds. Therefore, data management will improve in consideration of its continuously growing volume and security needs.

The Pectra update will also work on the Layer 2 solutions, often triggering congestion and high gas fees through the PeerDAS (Peer Data Availability Sampling). This technology will help L2 technologies handle data for affordable and fast transactions.

What will be the benefits for users?

Besides superior network efficiency, all Ethereum users will take advantage of Pectra. For example, regular users will be able to expand their token use for dApps and use their ETH for more than just gas fee payments.

On the other hand, validators and stakers will be more efficient in managing massive amounts of ETH since the limit for staking ETH has increased. Groups of validators will merge to decrease computational burdens and improve network efficiency.

Finally, developers will access a superior version of the Ethereum Virtual Machine (EVM), meaning smart contracts will improve. Therefore, it will be easier for developers to write and release contracts, possibly putting the base for a flow of dApps in the future.

What follows after Pectra?

While the end of the Pectra update has to wait, we’re wondering what follows next. Ethereum’s creator, Vitalik Buterin, envisioned the roadmap development to happen sometime between five and ten years, meaning we’re only at the start of things.

Every part of the roadmap has a main goal, such as:

• The Merge strived for a robust and decentralized PoS consensus;
• The Surge could achieve 100,000 transactions per second (TPS);
• The Scourge mitigates centralization concerns in MEV and liquid staking;
• The Verge simplifies block verification;
• The Purge eliminates technical debts;
• The Splurge will deal with all minor remaining issues;

Each category expands across multiple aspects, so developers must ensure all updates are deployed without exposing the network to security concerns. When the Merge was introduced, many doubted its security, believing that PoS mechanisms weren’t as secure as PoW. However, the update only strengthened the network’s trust.

How do Ethereum updates affect prices?

As the network develops and more technology is added to the blockchain, investors’ interest in Ethereum’s potential peaks. In comparison with Bitcoin, which is only a store of value assets, Ethereum focuses more on its technical contribution to the crypto ecosystem.

This continuous strive for improvement made Ethereum a trustable source even for centralized companies, such as Visa. The giant payment brand now allows banks to leverage the Ethereum network to issue fiat-backed tokens, with an upcoming project to be released in 2025 by the Spanish bank BBVA.

Ethereum is getting closer to adoption as a technology, meaning its value will benefit from the increasing usage. The blockchain could be an efficient tool for healthcare data management, education, and supply chains, and cryptocurrency could become an instrument that bridges the gaps between decentralization and traditional systems.

So, will the price of Ethereum surge in 2025?

While price predictions are made with thorough market analysis based on technical and sentiment aspects, experts believe 2025 will be a lucrative year for Ethereum. The supposition is made in consideration of the staking services offered by banks, so users will be able to stake ETH more easily.

Moreover, the new US administration is likely to offer improved regulation on cryptocurrencies, which means fewer limits for investors, developers and entrepreneurs. The Securities and Exchange Commission (SEC) might also see some replacements, which may bring new ideologies to the table, as opposed to Gary Gensler’s view on cryptocurrencies.

Ethereum will receive a new update in 2025

Ethereum is on a roll and continues to improve by adding a new update to the portfolio. The Pectra upgrade is expected to be a major change to the network since the Merge, approaching issues like staking limits and MEV challenges. The update will be split into two parts, with the second part to be deployed sometime in 2026. The 2025 category will include several EIPs, contributing to a new era of Ethereum for investors and developers.