🌎 Ethereum Pectra Upgrade Launches April 8

Ethereum’s Pectra Upgrade Set to Launch on April 8

Ethereum developers have announced the highly anticipated Pectra upgrade, scheduled to launch on April 8. The launch date was disclosed during the All Core Developers Execution (ACDE) Call #205 on February 13.

Testnet Launch Precedes Mainnet Activation

According to Tim Beiko, Ethereum Foundation Protocol Support Lead, the Pectra upgrade will first go live on the Holesky testnet on February 24 and Sepolia on March 5. On April 8, the upgrade will be completed when Pectra is activated on Ethereum’s mainnet.

Key Improvements in Pectra Upgrade

The Pectra upgrade brings several significant improvements to the Ethereum network. One of the most notable changes is the increase of Ethereum’s blobspace from three to six blobs in each block. This enhancement will increase Layer 2 data availability, further lowering costs and congestion.

Additionally, the upgrade will include execution-layer enhancements aimed at improving network performance. By accelerating the rate at which Ethereum burns, Pectra will also reinforce Ethereum’s deflationary model.

Ethereum’s Burn Mechanism and Ultra Sound Money

The London hard fork was the first to implement Ethereum’s burn mechanism, which permanently removes a percentage of ETH transaction fees. However, ETH burning was slightly decreased by the Dencun upgrade’s addition of blobspace. Pectra’s decision to double the blobspace limit is anticipated to increase burned Ethereum.

According to Justin Drake, an Ethereum researcher, the burn mechanisms can help Ethereum regain its position as “ultra sound money.”

Potential Impact on ETH Price

While the Pectra upgrade might have a positive impact on ETH price, investors are advised to remain cautiously optimistic. The price of ETH has fluctuated since falling below the psychological $3,000 mark.

On-Chain Metrics and Investor Interest

On-chain metrics show a different trend. In January, Ethereum’s total value locked reached its highest level since 2022. ETH could benefit from the rising on-chain activity.

Ethereum ETFs continue to attract a lot of investor interest. Net inflows into ETH ETFs have reached $3.14 billion as of February 13. Furthermore, after Cboe BZX filed a 19b-4 with the SEC to allow staking for the 21Shares Core Ethereum ETF, Ethereum may experience a rise in demand.