Ethereum is ready to become smarter, faster, cheaper: Will the new upgrade boost its price?
Subscribe to newsletter
Insights
->
Crypto Industry
,

Ethereum is ready to become smarter, faster, cheaper: Will the new upgrade boost its price?

May 5, 2025
Ethereum is ready to become smarter, faster, cheaper: Will the new upgrade boost its price?Ethereum is ready to become smarter, faster, cheaper: Will the new upgrade boost its price?Video Thumbnail

Ethereum, the world’s leading smart contract platform, is set for a major technical overhaul. On May 7, the highly anticipated Pectra upgrade (a fusion of the Prague and Electra proposals) will go live, marking Ethereum’s most significant upgrade since early 2024. Focused on improving speed, scalability, and user experience, this update could be a bullish catalyst for Ether investors.

What to expect from Ethereum’s big upgrade 

Ethereum secures its network through staking, a process where users lock up their Ether to help validate transactions and maintain blockchain security. In return, validators earn rewards for their participation.

With the upcoming upgrade, Ethereum will raise the staking cap from 32 Ether to 2,048 Ether per validator. This change is designed to streamline operations, enable auto-compounding of rewards, and reduce wait times for new validators to come online.

Moreover, wallets will temporarily gain smart contract capabilities, enabling features like gas (fee) payments in stablecoins, transaction bundling, and Web2-style account recovery using familiar tools like social media logins.

Additionally, Ethereum’s data capacity is doubling from 3 to 6 blobs per block, reducing fees for rollups like Base and encouraging more efficient data usage.

Why Ethereum’s upgrade matters to investors

Higher staking rewards and streamlined validator operations could incentivize more Ether to be locked up, tightening supply and driving price appreciation, which is good news for investors. 

Meanwhile, lower fees are poised to expand Ethereum’s ecosystem by enabling new use cases previously constrained by cost, boosting both utility and developer activity.

Moreover, wallet improvements and user-friendly recovery options remove key adoption hurdles for mainstream users.

All together, these upgrades reinforce Ethereum’s position in the blockchain race, strengthening its infrastructure while setting the stage for future innovations and keeping it competitive against rivals like Solana.

The bottom line 

Pectra is a smart, targeted upgrade focused on fixing some of Ethereum’s friction points. By improving staking, making wallets easier to use, and cutting costs on Layer 2s, Ethereum is doubling down on practical progress.

This upgrade brings long-awaited usability improvements, like lower fees and smarter wallet features. With Pectra, Ethereum is making itself more accessible to everyday users, especially those new to crypto, while quietly building a stronger, more efficient network for the future.

‍

For skeptics: Watch whether adoption metrics (active wallets, developer activity) actually respond - technical upgrades don’t guarantee usage. Either way, Pectra proves Ethereum’s focus on sustainable evolution over revolution.

‍

This report has been prepared and issued by 21Shares AG for publication globally. All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however, we do not guarantee the accuracy or completeness of this report. Crypto asset trading involves a high degree of risk. The crypto asset market is new to many and unproven and may have the potential not grow as expected.

Currently, there is relatively small use of crypto assets in the retail and commercial marketplace in comparison to relatively large use by speculators, thus contributing to price volatility that could adversely affect an investment in crypto assets. In order to participate in the trading of crypto assets, you should be capable of evaluating the merits and risks of the investment and be able to bear the economic risk of losing your entire investment.

Nothing herein does or should be considered as an offer to buy or sell or solicitation to buy or invest in crypto assets or derivatives. This report is provided for information and research purposes only and should not be construed or presented as an offer or solicitation for any investment. The information provided does not constitute a prospectus or any offering and does not contain or constitute an offer to sell or solicit an offer to invest in any jurisdiction. The crypto assets or derivatives and/or any services contained or referred to herein may not be suitable for you and it is recommended that you consult an independent advisor. Nothing herein constitutes investment, legal, accounting or tax advice, or a representation that any investment or strategy is suitable or appropriate to your individual circumstances or otherwise constitutes a personal recommendation. Neither 21Shares AG nor any of its affiliates accept liability for loss arising from the use of the material presented or discussed herein.

Readers are cautioned that any forward-looking statements are not guarantees of future performance and involve risks and uncertainties and that actual results may differ materially from those in the forward-looking statements as a result of various factors. This report may contain or refer to material that is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would subject 21Shares AG or any of its affiliates to any registration, affiliation, approval or licensing requirement within such jurisdiction.

‍

Market Updates

See all

Crypto Industry

See all
Documents
Prospectus
Final Terms
Key Information Documents
EMT Download
Factsheets
Issuer Specific Summary
Legal
Notice
Disclaimer
Privacy Policy
Terms of Use
ETH Simulator Terms of Use
Company
About Us
Careers
Press
Contact
Contact Us
21Shares AG
Pelikanstrasse 37
8001 Zurich,
Switzerland
+41 44 260 86 60

© 2024 21Shares AG. All rights reserved.

21Shares is a part of

The material contained on this website is for informational purposes only and 21Shares AG, and its affiliates, is not soliciting any action based upon such material. The material is not to be construed as an offer or a recommendation to buy or sell a security nor is it to be construed as investment advice. Additionally, the material accessible through this website does not constitute a representation that the investments described herein are suitable or appropriate for any person. Past performance is not an indication of any future performance. For the complete terms and condition, as well as the privacy policy, please see English version. In case of discrepancy, the English version shall prevail.

Welcome to 21shares
Country of residence
Exchange
Investor Type
Retail Investor
Qualified Investor
Choose your investor type to continue.

General Disclaimers

This website belongs to and is issued by 21 Shares (consisting of 21Shares AG and itsaffiliates). 21Shares publishes this website solely to provide information on 21Shares and itsproducts. This website does not constitute a public offering of financial products. Nothing on thiswebsite should be considered advice or a recommendation to any person to subscribe for financialproducts or investment services and activities. No information published on this website constitutes a solicitation, offer or recommendationto buy or sell any investment instruments or to conclude any other transactions or any legal actswhatsoever.The website may contain forward-looking statements. 21Shares makes no assurance that productsbased on crypto currencies, digital assets and indices referencing them will provide positiveinvestment returns. Do not invest before carefully considering the risks associated with investing insuch products and read in detail all pre-contractual documentation and periodic reports. Refer to thesection entitled “Risk Factors” in the relevant Prospectus (consisting of all its Supplements) and theFinal Terms for details on the risks associated with an investment in the products offered by theissuers before investing. Seek your own independent investment advice on all applicable legalrequirements, exchange control regulations and taxes in your jurisdiction.Charts and graphs are provided for illustrative purposes only and past performance is not anindication or guarantee of future results. The investment performance of any security referred to onthis website can be volatile and can go up or down in value and you can lose your entire investment.Exchange rates may affect the value of investments. Investments in foreign currencies areadditionally subject to exchange rate fluctuations and therefore carry a higher level of risk.Therefore, 21Shares cannot guarantee that any capital invested will maintain its value or increase invalue.21Shares does not guarantee the accuracy, completeness, timeliness or availability of the websiteinformation and will not be responsible for any errors or omissions, regardless of the cause, for theresults obtained from the use of the content. 21Shares will not be liable for damages (includingdamages for loss of earnings, business interruption, loss of information or other economic losses ofany kind whatsoever) arising from the use, in any form or for any purpose, of the data andinformation contained on the website.The entire content of the website is protected by copyright, with all rights reserved by 21Shares. Youmay save or print individual pages or sections of the website only if copyright and proprietary noticesremain intact. Any saving or copying of data acknowledges that copyrights and ownership rightsremain with 21Shares. The website does not grant any license or right to use images, trademarks,logos, or software, and downloading or copying any part does not transfer title.This website and the materials herein are directed only to certain types of investors in certainjurisdictions in which 21Shares’ products may be distributed. Accordingly, the website is notdirected at any person in any jurisdiction in which (by reason of that person's nationality, taxresidence or otherwise) publication of or access to the website is prohibited. Persons in respect ofwhom such local restrictions apply must not access the website.

Agree and continue