The Ethereum Pectra upgrade introduces EIP-7251, raising the validator staking cap from 32 ETH to 2,048 ETH. This allows consolidation of multiple validators into one, reducing the total number of validators and network overhead. While enhancing staking efficiency and reward compounding, it may increase centralization risks, as larger stakeholders could dominate. The upgrade mitigates this with a lower slashing penalty (1/4,096 vs. 1/32) for high-balance validators, encouraging participation without disproportionate risk. However, fewer validators might concentrate control, potentially impacting decentralization. The community must monitor validator distribution to maintain Ethereum’s ethos.