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coinpedia 2025-02-04 08:24:29

Ethereum’s Pectra Upgrade Set to Boost Layer 2 Capacity, ETH Price Jump By 10%

Ethereum’s Pectra Upgrade Set to Boost Layer 2 Capacity, ETH Price Jump By 10%

The post Ethereum’s Pectra Upgrade Set to Boost Layer 2 Capacity, ETH Price Jump By 10% appeared first on Coinpedia Fintech News Ethereum, one of the leading blockchain networks, is gearing up for its next big upgrade, Pectra, scheduled to launch in March. In a recent tweet post Co-founder Vitalik Buterin recently shared exciting details about this update, highlighting a key change that could significantly boost the network’s efficiency. Meanwhile, Ethereum ETH price recovered from its recent drop & now trading around $2711 reflecting a rise of 10% in day. Ethereum’s Pectra Upgrade Layer 2 solutions , which help Ethereum handle more transactions at lower costs, rely on “blobs” – temporary data storage units. By doubling the blob target from 3 to 6, Ethereum will be able to process more transactions smoothly, reducing congestion and fees. Pectra, expected in March, will increase the blob target from 3 to 6, doubling the capacity of L2s. IMO we should make the blob target also staker-voted, so that it can increase in respose to technology improvements without waiting for hard forks. — vitalik.eth (@VitalikButerin) February 4, 2025 This is a big win for decentralized finance (DeFi) platforms, gaming applications, and other services built on Ethereum, as it makes the network more scalable and user-friendly. Flexible Network Upgrades Alongside this upgrade, Buterin also proposed a fresh idea to improve how Ethereum handles future upgrades. Instead of relying on traditional hard forks, which require broad consensus and take time to implement, he suggested letting Ethereum stakers vote on blob capacity changes. This approach would make the network more flexible, allowing it to adapt quickly to new technological advancements. It also aligns with Ethereum’s vision of decentralization, giving validators a stronger voice in shaping the network’s future. Debates Over Gas Limit Increase The Pectra upgrade comes at a time when the Ethereum community is actively discussing other improvements, such as increasing the gas limit. According to Gaslimit.pics , a platform tracking validator sentiment, 52% of validators support raising the gas limit. While some believe this could lower transaction fees, others worry about potential risks to network stability. ETH Price Surges Meanwhile, Ethereum’s price has been making headlines too. After a recent market dip, ETH surged from 2,300 to over 2,900 in less than 24 hours, partly fueled by news around U.S. President Donald Trump holds tariff plans. Adding to the buzz, Eric Trump tweeted bullish sentiments about Ethereum, calling it a “great time to add $ETH.” His comments sparked curiosity, though it remains unclear whether he was addressing individual investors or making a broader statement.

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