Ethereum developers have confirmed plans for a major network upgrade, tentatively named EIP-7890, aimed at enhancing Layer 2 scalability. The upgrade will focus on reducing gas fees and improving transaction speeds, making Ethereum more efficient for users and developers.
The Pectra upgrade, scheduled for May 7, 2025, will introduce several Ethereum Improvement Proposals (EIPs) designed to optimize staking, enhance user experience, and improve network performance.
It combines elements from two previously planned updates—Prague and Electra—into a single release. It includes 11 major EIPs, each addressing different aspects of Ethereum’s functionality.
Testing and Deployment Timeline
The Pectra upgrade underwent extensive testing on multiple Ethereum testnets, including Holesky, Sepolia, and Hoodi. While initial testnet rollouts encountered minor bugs, developers successfully stabilized the upgrade, leading to its final approval for mainnet activation on May 7, 20253. The decision was confirmed during the All Core Developers Consensus (ACDC) call on April 3, 2025, ensuring that all major Ethereum clients are Pectra-compatible.
Market Implications and Future Outlook
Ethereum’s transaction fee revenue has declined in recent months, dropping from $142 million in January to $21 million in March, according to DeFiLlama data. Developers hope that the Pectra upgrade will attract new users, improve network efficiency, and restore investor confidence. Additionally, Ethereum continues to outperform competitors like BNB Chain and Solana in decentralized exchange (DEX) volume, processing $64 billion in trades in March.
Shogun Lin
