Ethereum

New Era

2024

Galaxy

<p>The Ethereum network is about to reach a new critical milestone in its evolution. The upcoming Pectra fork, scheduled for late 2024 or early 2025, aims to optimize transaction fees for layer 2 (L2) scaling solutions. This update could well redefine the network’s economy and accelerate crypto adoption.</p>
<h2 id="h-un-ajustement-technique-pour-des-gains-concrets">A technical adjustment for tangible gains</h2>
<p>The core of Pectra lies in the implementation of EIP-7742, an improvement proposal that will revolutionize the management of “blobs.” These temporary data blocks, introduced in March 2024 with the <a href="https://www.cointribune.com/en/ethereum-the-dencun-upgrade-is-finalized-fees-will-drastically-decrease/" target="_blank" rel="noopener noreferrer nofollow">Dencun update</a>, play a key role in reducing L2 transaction costs.</p>
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<p>EIP-7742 will allow Ethereum’s consensus layer to dynamically adjust target and maximum values of “blob gas.” In concrete terms, this means that the network will be able to adapt in real-time to demand, thereby optimizing resource use.</p>
<p>Christine Kim, Vice President of Research at Galaxy Digital, <a href="https://cointelegraph.com/news/ethereum-devs-add-blob-upgrade-to-pectra-fork" target="_blank" rel="noopener noreferrer nofollow">points out</a> that this increased flexibility should “increase the number of blobs,” currently limited by a fixed capacity.</p>
<p>This technical evolution addresses a pressing need. <a href="https://www.cointribune.com/en/vitalik-buterin-launches-a-rescue-plan-for-the-ethereum-crypto/" target="_blank" rel="noopener noreferrer nofollow">Vitalik Buterin</a>, co-founder of Ethereum, recently warned about the limits of the current system, which risked hindering the network’s scalability. Pectra thus appears as a strategic response to maintain Ethereum’s competitiveness against rival blockchains.</p>
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<h2 id="h-un-impact-economique-a-surveiller-de-pres">An economic impact to monitor closely</h2>
<p>While Pectra’s technical benefits seem obvious, its economic repercussions raise questions. Matthew Sigel, Head of Digital Asset Research at <a href="https://www.cointribune.com/en/?p=725559" target="_blank" rel="noopener noreferrer nofollow">VanEck</a>, warns of a potential decrease in the main Ethereum network’s revenue in favor of L2s.</p>
<p>This trend, already observed for several months, could be accentuated with Pectra. Sigel has revised his price forecasts for Ether downward, from a target of $22,000 to $7,330 by 2030 if the current revenue distribution between Ethereum and L2s (10:90) remains the same.</p>
<p>In short, the Pectra fork promises to be a major turning point for the crypto ecosystem. By optimizing transaction fees, it could accelerate the adoption of L2 solutions and redefine the economic balance of the <a href="https://www.cointribune.com/ethereum/" target="_blank" rel="noopener noreferrer nofollow">Ethereum network</a>. Investors and developers will need to closely monitor these changes to seize all the opportunities.</p>

Ethereum: A New Era With Pectra, What Are The Implications For The Price?

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