The development team for Ethereum (ETH) has reorganized and is once again working on the much awaited Pectra update.
The network’s core development team has decided to build a fresh testnet to show the code update one last time before attempting to deploy it again after two unsuccessful tests of the Pectra upgrade. The Ethereum Foundation announced on social media that the test chain will be updated to the latest version of Ethereum on March 26 and its stability and performance assessed.
Developers will be able to attempt implementing the Pectra update, which contains a number of code modifications intended to make Ethereum faster, more effective, and easier to use, once more if the test in late March is successful. Most significantly, it is anticipated that the Pectra update would include “smart contract” capability and enable users to pay transaction fees using cryptocurrencies other than Ethereum.
It is currently anticipated that the Pectra improvement would be finished by the end of April or the beginning of May this year. The Pectra enhancement issues occur at a challenging moment for Ethereum. Declining pricing and a change in leadership at the Ethereum Foundation are putting strain on the network.
Other blockchains like Solana (SOL) are also becoming a bigger threat to ETH. Nevertheless, Pectra is expected to be among the most significant updates to the Ethereum blockchain to date. Ethereum has dropped 45% over the past 12 months and is now trading at $1,930.
Is ETH a Good Investment?
Since the majority of Wall Street businesses do not provide Ethereum ratings or price projections, we will instead examine the cryptocurrency’s performance over the last three months. The price of ETH has dropped 53% over the past 12 weeks, which is a significant drop, as the figure below illustrates.
FAQ
The Pectra upgrade is a major Ethereum update designed to improve network speed, efficiency, and usability. It introduces several code modifications, including enhanced smart contract functionality and the ability to pay transaction fees with cryptocurrencies other than ETH
The upgrade faced two unsuccessful testnet deployments, prompting Ethereum developers to reorganize and create a new testnet. The latest test is scheduled for March 26 to ensure stability before the final rollout.
If the upcoming test is successful, the Pectra upgrade is expected to be completed by late April or early May 2025
The upgrade aims to enhance transaction efficiency, reduce fees, and make Ethereum more competitive with other blockchains like Solana. Users will also gain more flexibility in transaction fee payments.
Ethereum has experienced a 45% decline over the past year and a 53% drop in the last three months. While the Pectra upgrade could boost its long-term value, investors should consider market trends and risks before making decisions.
