Ethereum’s Pectra Upgrade Scheduled for March 2025
Ethereum developers aim to launch the Pectra upgrade in March 2025, following a core developer meeting on January 16. Key milestones include:
- Updated client software release in February 2025
- Hard forks on test networks Sepolia and Holesky
- Mainnet deployment expected in April 2025
The upgrade, delayed from late 2024, will enhance user experience, enable account abstraction, increase validator stake limits from 32 to 2,048 ETH, and improve deposit and exit mechanisms.
A temporary testnet named Mekong was launched in November 2024 for testing these upgrades.
Competition Analysis
Ethereum holds a total value locked (TVL) of over $68 billion but faces competition from Solana, which has seen an 83% growth in developer activity. Solana's TVL is currently $9.6 billion.
Institutional support for Ethereum remains strong, with spot Ether ETFs recording a $166 million inflow on January 16, led by Grayscale Ethereum Mini Trust with contributions totaling $565.87 million since July 2024.
As of now, Ether trades above $3,400, showing a 2% daily increase and a 3.4% weekly rise. A sustained close above $4,000 could trigger bullish momentum.
Market Sentiment
Analyst Ali Martinez suggests Ether is forming a "head-and-shoulders" pattern that may lead to significant price increases, targeting $7,000 soon. Long-term Ethereum holders are increasing their positions, contrasting with selling trends observed in Bitcoin.
Overall, the Pectra upgrade, institutional inflows, and increased confidence among long-term investors position Ethereum favorably in the blockchain sector.