Ethereum receives large upgrade on March 5: What does this mean for the race?

Ethereum has had an eventful month. In February, Ether lost more than 32%, with the price falling to a low point of $ 2,073 – the lowest level in more than two months. However, since the announcement of an American crypto reserve, the price has been restored to around $ 2,500. Nevertheless, Ethereum lies behind Bitcoin, which recovered stronger.

However, there is light at the end of the tunnel. The long-awaited pectra upgrade will be launched on 5 March, an important development that can strengthen the Ethereum network. This upgrade would not only improve the efficiency and scalability of Ethereum, but possibly also lay the foundation for a new growth phase in the Cryptomarkt cycle of 2025.

Pectra upgrade brings important network improvements

Ethereum’s Pectra upgrade, which will be launched on March 5, could relieve the ongoing sales pressure and possibly give a positive boost to sentiment among investors. According to Gabriel Halm, research analyst at Blockchain analysis company Intothlock, this upgrade is an important step in the further development of the Ethereum ecosystem:

“Although the pectra upgrade will not immediately cause a price rise, it is a crucial progress in the continuous improvements to Ethereum. By lowering the consensus burden and increasing the scalability of Layer-2 solutions, the network capacity is expanded and Ethereum strengthens its competitive position. ”

One of the most radical changes is Ethereum Improvement Proposal (EIP) -7251, which increases the limit for validator strike from 32 ETH to 2,048 ETH. This makes it easier to reinvest their merits, which can reduce sales pressure on the market in the long term.

Ethereum Foundation announces new leadership structure

While the community remains critical of the Ethereum Foundation, some users call for an improvement of Ethereum’s position in the market. They state that Ethereum loses ground due to the rise of faster block chains and Layer-2 solutions, which would make the main network less relevant.

In response, the Ethereum Foundation has announced a new leadership structure. As of March 17, HSiao-Wei Wang and Tomasz Stańczak will take the lead as co-directors. Wang has been a researcher at the Ethereum Foundation for seven years, while Stańczak has led the CEO of Nethermind to one of the largest implementation clients on Ethereum.

This change comes at a crucial moment, now that concerns about the impact of Layer-2 solutions are increasing. To cope with these challenges, Vitalik Buterin presented a strategy on January 23, in which he proposes, among other things, to increase the number of ‘blobs’. This would increase the transaction supply and encourage layer-2 networks to pay part of their income to the basic layer of Ethereum.

With the Pectra upgrade and a renewed leadership structure, Ethereum once again positions itself as the leading smart contract platform, despite increasing competition in the sector.

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