Ethereum Pectra: Next Big Upgrade in Early 2025

Following Dencun (March 2024), Ethereum’s Pectra update combines Prague (execution) and Electra (consensus) improvements.

Key Changes:
- EIP-7702 (Account Abstraction): Turns EOAs into contract accounts temporarily. Benefits: batch transactions, gas sponsorship via ERC-20, and limited-use keys (e.g., 5% daily spend cap).
- EIP-7251 (Validator Consolidation): Raises validator max balance from 32 ETH to 2048 ETH. Reduces network load, simplifies staking (e.g., 40 ETH vs. 2x32 ETH).
- EIP-7742 (Data Optimization): Enhances blob management post-Dencun, preparing for future blob limit increases.

Ethereum Foundation Moves:
- $81.6M ETH in Aave (20.8k ETH main, 10k ETH Aave Prime).
- $26M ETH in Spark (MakerDAO).
- $11.2M ETH in Compound.

Boosts ETH yield without selling, supporting long-term holders.

Conclusion:
Pectra enhances efficiency, scalability, and usability. Next up: Fusaka (data availability focus). Stay tuned—details may shift!