In May 2025, the Ethereum network underwent one of the most significant upgrades in its history, the Pectra Upgrade. This update redefined staking rules, made validator operations more flexible, expanded scalability by increasing blob throughput, and laid the groundwork for future protocol transformations.
In this article, we’ll break down what exactly was included in the Pectra upgrade, which Ethereum Improvement Proposals (EIPs) were implemented, and how it impacted validators, rollup projects, institutional participants, and the decentralization of the network. We’ll also look at the economic outcomes, including lower blob costs, new rollup revenue dynamics, and staking trends.
What Is the Pectra Upgrade and Why Was It Needed?
Pectra is a comprehensive upgrade to the Ethereum network that includes 11 Ethereum Improvement Proposals (EIPs). It marks the most significant update since Ethereum transitioned to Proof-of-Stake (the Merge) in 2022.
The main goal of Pectra is to enhance the network’s efficiency, scalability, and usability. Together, these upgrades address several key challenges:
Staking Optimization
Before Pectra, validators could only effectively stake 32 ETH, regardless of how much they held. This forced large stakers to run dozens or even hundreds of separate validator nodes, complicating infrastructure. Pectra allows larger amounts to be delegated to a single validator, reducing technical overhead.
Faster Processes
Previously, new validators had to wait up to 12 hours to be activated, and exiting staking was slow and cumbersome. Pectra significantly reduces these delays, activation now takes around 13 minutes, and exits are more predictable and programmable.
Scalability Through Blobs
Ethereum could previously handle only up to 6 blobs per block, which limited the growth of rollup projects. Pectra raises these limits, making blobs cheaper and more accessible for Layer 2 solutions.
Preparation for the Future
The upgrade lays the foundation for major upcoming innovations like Verkle Trees, full danksharding, and inclusion lists technologies that will further scale and decentralize Ethereum.
In short, Pectra removes existing technical bottlenecks and propels Ethereum toward its next evolution as a high-performance global network.
How Is Pectra Different from Previous Upgrades?
- Merge (2022) was a historic milestone that transitioned Ethereum to Proof-of-Stake.
- Dencun (2024) introduced blobs for the first time (via EIP-4844), marking an important step toward danksharding.
- Pectra (2025) continues building on both fronts: it optimizes validator operations and pushes further toward scaling with expanded blob capabilities.
In essence, Pectra is a bridge between today’s Ethereum and its long-term vision.
Breakdown of All EIPs Included in Pectra
Pectra brought many changes from improved staking to network scaling. But all of this became possible thanks to 11 specific EIPs. Let’s go through what each of them means and why it matters.
- EIP-7702 – turning a regular wallet into a smart one
Previously, your wallet could only sign transactions. Now it can behave like a smart contract, but only during a single transaction. This opens up new possibilities: for example, paying gas not only in ETH, using session keys, or delegating rights to another person. All this without switching to complex smart wallets.
- EIP-7691 – more space for rollups
Ethereum adds more “space” for blob data, the kind used by rollup solutions like Optimism or Arbitrum. This means more transactions for less money. Simply put, more efficient scaling and cheaper fees.
- EIP-7251 – you can stake more than 32 ETH
Previously, one validator could hold only 32 ETH on effective balance. Now up to 2048 ETH. This allows for fewer but more powerful validators and reduces network load. It also enables auto-compounding of rewards without creating new validators.
- EIP-7623 – storing data in a transaction becomes more expensive
Ethereum is making storing regular data (calldata) more expensive. This encourages developers to use blobs, which are more efficient and cheaper. As a result, the network becomes more stable, and there’s enough block space for everyone.
- EIP-7002 – staking withdrawal directly from a smart contract
Now you can withdraw ETH after staking without intermediaries. For example, if you staked through a decentralized pool, the contract can automatically return your funds without manual interaction. This is safer and more convenient.
- EIP-7685 – direct connection between Ethereum layers
This EIP allows smart contracts to interact directly with the consensus layer. In other words: you can now write logic that takes block validation into account. This opens up a lot of new use cases for applications.
- EIP-2537 – faster cryptography
Adds a special function for fast verification of BLS digital signatures. It’s used in validators, zk-proofs, and private transactions. Less gas, faster performance, more privacy.
- EIP-2935 – more block history in the network
Ethereum now remembers 8192 previous blocks directly in the network state. This allows rollups and cross-chain protocols to access historical data without relying on external sources.
- EIP-6110 – faster staking
Previously, when you sent ETH to staking, your deposit was recorded separately. Now, directly in the blocks. Shifts deposit processing logic to the Execution Layer, significantly reducing validator activation time from ~12 hours to ~13 minutes.
- EIP-7549 – smarter validator message signing
Ethereum optimizes how validators sign messages. This reduces the size of the data they send and allows light clients to work more efficiently. It also improves zk-proofs.
- EIP-7840 – blob settings in configuration
Blobs can now be configured flexibly directly in system parameters. This simplifies future scaling and allows for better forecasting of resource needs.
Side-by-Side Comparison of Pectra Upgrade EIPs
Here is a comparison table of all EIPs in the Pectra upgrade:
| EIP | Title | What It Changes | Impact | Key Feature |
| EIP-7702 | Set Code for EOAs | EOAs can act like smart contracts | Better UX, flexible transactions | Temporary custom validation logic |
| EIP-7691 | Blob throughput increase | Expands blob data availability | Cheaper scaling for L2s | More efficient rollup transactions |
| EIP-7251 | Increase the MAX_EFFECTIVE_BALANCE | Raises validator cap to 2048 ETH | Streamlined staking | Auto-compounding without extra validators |
| EIP-7623 | Calldata Cost Increase | Makes calldata more expensive | Encourages blob usage | Frees up block space |
| EIP-7002 | Execution layer triggerable withdrawals | Enables contract-level ETH withdrawals | Better UX and automation | No manual interaction needed |
| EIP-7685 | General purpose execution layer requests | Connects smart contracts to consensus | New logic for dApps | Enables block-aware contract behavior |
| EIP-2537 | BLS Precompile | Adds fast BLS signature verification | Faster cryptography | Efficient zk, validator, and privacy operations |
| EIP-2935 | Historical Block Hashes | Stores recent block hashes on-chain | Data access for rollups | Easier historical queries |
| EIP-6110 | EL Deposits | Shifts deposit handling to Execution Layer | Faster validator onboarding | From 12 hours to ~13 minutes |
| EIP-7549 | Optimized Validator Signatures | Reduces validator message size | Lighter clients, better zk | Efficient proof generation |
| EIP-7840 | Blob Parameterization | Makes blob configuration flexible | Better scaling planning | Dynamic blob handling |
These EIPs are not just “new features”. They change the very logic of how Ethereum works: making it faster, more scalable, and more convenient for users and developers. And most importantly, they prepare the network for a new era focused on the rollup ecosystem and Account Abstraction.
The Blob Market After Pectra
Blobs are separate “containers” for storing data that do not enter Ethereum’s main state but remain accessible for use. Their main purpose is to provide a cheap and scalable space for publishing large amounts of data, primarily for Layer 2 solutions like zk-rollups and optimistic rollups.
Blobs were first introduced to Ethereum in March 2024 with the Dencun upgrade (via EIP-4844), marking an early step toward full danksharding. Thanks to blobs, rollup projects can now publish data to Ethereum far more cheaply than using standard L1 transactions.
As part of Pectra (via EIP-7691), the limits on blobs per block were increased, from a target of 3 and a maximum of 6, to a target of 6 and a maximum of 9 blobs. This significantly expanded Ethereum’s data capacity for rollups and reduced pressure on the main layer of the network.
Blob Economics After the Upgrade
Pectra had a noticeable impact on the blob market, both in usage and pricing:
- Blob usage increased by 21%: from ~21,200 blobs/day before the upgrade to ~25,600 after. This reflects higher demand from rollups.
- Blob pricing dropped to near-zero: the average blob now costs around $0.00000000035 (1 wei), and daily blob expenses for a typical rollup are about $0.00001 ( practically free).
- ETH burn decreased: due to cheaper blob fees, daily ETH burn fell from 11.22 ETH to 3.26 ETH is a 71% drop.
- Rollup profitability surged: with lower data costs, most L2s now operate with 95–99% margins. Top performers include Base and Linea.
In short, blobs became a near-free, ultra-efficient data channel, fueling even faster rollup ecosystem growth.
Technical Impacts
- Increased node load: the amount of blob data stored by consensus nodes rose from ~40–44 GB to ~60 GB, and could reach 95–100 GB with full usage.
- Improved blob efficiency: average blob fill rate increased from 82% to 86%, indicating more efficient use of each blob’s 128 KB capacity
What Are Potential Risks?
- Extremely low blob costs may enable spam attacks targeting node storage.
- New approaches to blob archiving and data pruning will be needed to prevent excessive node strain.
What’s Going On with Validators?
Since the Pectra upgrade, the validator landscape has shifted significantly. While EIP-7002 initially made it easier for validators to exit, leading to a temporary drop of over 16,000, but the trend has since reversed. At the moment of writing, the number of active validators has now surpassed pre-Pectra levels, and the total amount of staked ETH has also increased.
Validator balances are becoming more concentrated. The average stake per validator has grown from around 32 ETH to approximately 32.6 ETH, and this trend is expected to continue. The network is evolving toward a more optimized and scalable structure, even as participation grows.
While this trend may raise concerns about centralization, it does offer some practical benefits:
- Improved capital efficiency for stakers.
- Lower networking overhead: fewer validators means less peer-to-peer traffic and reduced load on the consensus layer.
Internal research by Everstake’s Data Science team supports this shift. The study compared two validator groups with equal total stake: one with stable 64+ ETH validators, the other with randomly selected 32 ETH validators. The findings confirm that higher validator balances do not negatively affect execution layer rewards.
Ethereum’s validator set is entering a new phase: fewer, more efficient operators running higher balances. It’s a natural outcome of protocol improvements, one that will likely shape the next chapter of Ethereum staking.
What Institutional Players Gained
The Pectra upgrade significantly improved the environment for institutional participants, including custodial services, large stakers, and professional validators.
- Fewer Validators, Less DevOps Overhead: Thanks to EIP-7251, institutions can now consolidate up to 2,048 ETH per validator instead of running dozens or hundreds of separate 32 ETH nodes. This reduces infrastructure and operational complexity.
- Faster Entry and Exit from Staking: EIP-6110 and EIP-7002 reduced validator activation times and streamlined the exit process. Institutions can now scale their staking operations quickly or adjust their activity in response to market conditions.
- Lower Slash Penalties for Large Validators: The new slashing framework significantly reduces penalties for high-balance validators, for example, a 2,048 ETH validator now faces a much smaller slashing penalty compared to the previous 32 ETH setup.
- Improved Risk and Compliance Control: The ability to submit deposit and exit transactions via the Execution Layer paves the way for automated staking strategies and better alignment with legal and compliance frameworks.
These improvements make Ethereum a more accessible, manageable, and predictable ecosystem for institutional staking.
For a broader perspective on how the Ethereum community views Pectra and the network’s evolution, we recommend to read Conversation with Ethereum Foundation ecosystem experts, conducted by the Everstake team.
What’s Coming with Fusaka
Pectra is a major leap but Ethereum’s scaling story doesn’t end there. Fusaka is Ethereum’s next scheduled upgrade, expected in late 2025. It builds on the foundation laid by Dencun and Pectra, further preparing the network for full danksharding and broader scalability.
One of the main step toward full danksharding and rollup scalability is the introduction of PeerDAS (Peer Data Availability Sampling). This mechanism will allow validators to sample small parts of blob data instead of downloading entire datasets, which will make data handling more efficient and open the door for larger blob limits in the future.
The Fusaka upgrade is currently being tested on Devnet-2, launched in June 2025. Depending on the results, additional features such as Verkle trees may be considered in future testnets. These trees could eventually enable stateless clients and reduce the storage requirements for node operators. While some proposals, like the EVM Object Format (EOF), were removed from Fusaka due to complexity.
Bottom Line
Pectra updated key technical elements of Ethereum, making the network more flexible, faster, and better prepared for future developments. Changes in staking now allow larger amounts to be consolidated under a single validator, simplifying infrastructure. Rollup solutions benefit from increased data space and lower costs, boosting their growth.
The number of validators is growing and overall efficiency is rising. Research, including that from Everstake, confirms that increasing validator balances does not reduce their profitability. This enables network optimization without losses for users.
Pectra is not a final destination and part of a larger journey. Ethereum is gradually moving toward more scalable solutions, especially with the upcoming Fusaka upgrade.
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