Ethereum has surpassed $2.200 following the arrival of the Pectra upgrade, which improves efficiency, security, and scalability on the mainnet.
The price of Ethereum is booming following the activation of the long-awaited Pectra update on May 7, which has propelled the cryptocurrency, the second most capitalized after Bitcoin, to surpass $2.200. It is important to note that These price levels have not been seen since February, which highlights the importance of this technical update.
TRADE WITH ETH ON BIT2MEBut, in addition to Pectra's arrival on the Ethereum mainnet, the cryptocurrency's price is also rising in a context where the proposed migration of projects like Sei to the Ethereum Virtual Machine (EVM) standard and a favorable macroeconomic environment strengthen confidence in the crypto ecosystem in general.
Pectra: The update that redefines Ethereum architecture
The Pectra upgrade, launched on May 7, represents a deep integration of two key improvements: Prague, which focuses on the execution layer, and Electra, which optimizes the consensus layer. This set of changes incorporates eleven Ethereum Improvement Proposals (EIPs), which address key aspects to improve user experience, validator performance, and network scalability.
As reported by this media, among the innovations Most notable is the implementation of smart wallets, which allow traditional accounts to execute contractual functions, facilitating more flexible operations and innovative payment models. Additionally, the maximum staking limit for validators has been increased from 32 to 2.048 ETH, a measure that allows large investors to consolidate their funds under a single entity, reducing fragmentation and improving the security and efficiency of the validation system.
Another crucial improvement is the ability to pay gas fees using stablecoins, simplifying interaction for new users and reducing barriers to adoption on Layer 2 and Layer 3 platforms. Optimizing data storage in blobs also allows for publishing a higher volume of Layer 2 transactions without increasing costs on the main network, driving a more diverse and scalable ecosystem.
ACCESS CRYPTO WITHOUT HASSLEThese technical advances have had a tangible impact: the circulating supply of ETH has decreased to 120,69 million, its lowest level in 18 days, due to increased token burns associated with rising usage fees. A record 474.044 unique active addresses have also been registered over a monthly period, reflecting increased activity and confidence in the Ethereum network.
Efficiency and scalability: keys to Ethereum's next phase
Historically, Ethereum has faced significant challenges in terms of efficiency and scalability compared to competing blockchains. Pectra addresses these limitations with a set of technical enhancements that optimize the user experience and network operational capacity.
The increase in the staking limit to 2.048 ETH allows validators to accumulate larger amounts under a single entity, reducing node fragmentation and automating rewards. This consolidation strengthens the network's security and decentralization, improving its resilience against attacks and failures.
On the other hand, the introduction of EIP-7702, which allows external accounts to temporarily function as smart contracts, is another significant advancement of the update. This functionality enables, for example, third parties to cover gas fees or payments with tokens other than ETH, facilitating sponsored payment models and more flexible operations for users and developers.
BUY AND SELL ETHEREUM HEREIn terms of scalability, blob storage optimization increases the capacity to publish Layer 2 transaction data without increasing costs on the main network, driving mass adoption of decentralized applications (DApps) and decentralized finance (DeFi). For experts, this represents a fundamental step toward overcoming congestion and reducing fees, issues that limited Ethereum's previous growth.
Together, these improvements position Ethereum for a more efficient and scalable future, capable of handling a much larger volume of transactions with greater security and lower costs, strengthening demand and confidence in ETH.
Sei's migration to EVM and its impact on Ethereum
In addition to the activation of Pectra on mainnet, a recent and highly relevant development, which is also positively impacting the price of ETH, is the Sei's proposal to fully migrate to the Ethereum Virtual Machine (EVM) model as the only compatibility. This move means that Sei will deploy its architecture exclusively on EVM, abandoning its previous dual model based on the Cosmos SDK.
The development team reported that this proposal seeks to simplify development, unify tools, and reduce operating costs for users and developers, thus strengthening the Ethereum-led ecosystem.
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A more favorable macroeconomic environment
Beyond technical improvements and ecosystem dynamics, the current global macroeconomic environment is another key factor driving the price increase of Ethereum and other cryptocurrencies.
The decline in inflation and the US Fed's monetary policies have increased confidence in digital assets as investment alternatives and stores of value. Furthermore, Bitcoin's rally, which hovers around $102.000 with bullish forecasts for the year ahead, reinforces overall confidence in the crypto market. This macroeconomic context, coupled with internal technical improvements, positions Ethereum on the cusp of a new technological and financial revolution.
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