Ethereum’s long-awaited Pectra upgrade has successfully launched on the Sepolia testnet. This marks a major milestone for the blockchain’s next phase. The upgrade went live on March 5 at 7:29 am UTC. It introduces key changes aimed at improving staking and wallet functionality.
However, potential delays loom. Developers are still working through issues from a previous failed test on the Holesky testnet. According to Ethereum contributor Terence, Sepolia’s rollout had a “perfect proposal rate.” But the Holesky testnet, which mimics Ethereum’s mainnet more closely, suffered a misconfiguration. This caused a chain split, making Holesky temporarily unusable. Developers will meet on March 6 to discuss the mainnet release timeline.
What’s in the Pectra Upgrade?
Pectra consists of 11 Ethereum Improvement Proposals (EIPs). One of the most anticipated is EIP-7251. It increases the maximum stake per validator from 32 to 2,048 ETH. This change streamlines Ethereum’s staking system. Validators will no longer need to split large stakes across multiple nodes.
Another major update, EIP-7702, introduces smart contract functionality for wallets. This would enable wallets to process transactions in stablecoins. It could also allow automated payments and easier account recovery. These changes move Ethereum closer to full account abstraction.
Could Pectra Help Ethereum Compete with Solana?
Ethereum has been under pressure to roll out upgrades faster. Solana has gained traction with lower fees and quicker transactions. Some investors believe Pectra could help Ethereum maintain its dominance. The upgrade aims to improve network efficiency and make staking more attractive.
Analysts are also watching Pectra’s impact on institutional adoption. According to Iliya Kalchev, a dispatch analyst at Nexo, the upgrade could “pave the way for staking to be integrated into Ethereum exchange products.” Some experts believe this could boost the chances of a staked Ethereum ETF. This is particularly relevant as the U.S. moves toward a more crypto-friendly regulatory stance.
Mainnet Launch Uncertainty Remains
Despite the excitement, a failed testnet upgrade on Holesky could cause delays. The Ethereum Foundation had planned to pick a final activation date after both Sepolia and Holesky were upgraded. But the Holesky failure forced developers to investigate issues. These include “correlation penalties” and “validator balance drains.”
Ethereum developers now estimate at least 18 more days are needed before Holesky is fully operational. At the time of writing, ETH is sitting at $2,246.92.
