🧐 Cognitive blockchain, you must understand: Pectra is a 'structural upgrade', not a 'narrative upgrade' | ETH's deep waters have begun—— preface: I thought Ethereum, in an era of multi chain, modularity, and data sovereignty, was the "law+land+currency" of a modular world, not just a simple L1, but a "digital financial sovereignty layer". Pectra upgrade is about to go live—— The Pectra upgrade integrates two upgrade plans, "Prague" and "Electra", aimed at improving network efficiency and security. It includes 11 Ethereum Improvement Proposals (EIPs), with a focus on scalability, staking optimization, and smart wallet functionality. The key upgrades include introducing an account abstraction mechanism (EIP-7702), increasing the upper limit of validators (EIP-7251), and doubling the throughput of data chunks (Blob) (EIP-7691) to reduce Laver2's transaction costs. one ️⃣ The core highlights of Pectra upgrade—— 1) EIP-7251: Increase the maximum pledge limit for validators; Raise the staking limit for each validator from 32 ETH to 2048 ETH, significantly optimizing staking efficiency. Beneficial for simplifying management of large nodes/institutions, improving the balance between network decentralization and security. 2) EIP-3074: Enhance EOA functionality and improve wallet programmability; Enable traditional wallets to have advanced operations such as batch execution and signature authorization, just like smart contract accounts. To pave the way for the subsequent "Account Abstraction (ERC-4337)". 3) Preliminary preparation work for Verkle Tree; Although Verkle Tree has not been directly launched, laying a foundation will greatly improve data compression efficiency in the future and be friendly to running nodes. 4) Subsequent optimization of Proto danksharding (EIP-4844); Pectra will continue to lay the foundation for L2 optimization and promote the macro strategy of "Ethereum as the settlement layer". two ️⃣ Possible impact on the market and prices—— In the short term, Pectra may not necessarily trigger a major market trend (unlike The Merge, which has a direct deflationary logic), but in the medium to long term: ✅ Positive factors: Staking efficiency improvement → More ETH locked up, reduced circulation; Enhanced account abstraction → lowered usage threshold, conducive to user growth, especially for L2 wallet; L2 ecological benefits → reducing gas burden and enhancing scalability; Improved infrastructure → institution friendly, with clearer long-term investment value for ETH. ⚠️ Risk or neutral factors: Insufficient narrative and flat market expectations; The price of ETH is already dominated by macro factors such as Federal Reserve interest rates and risk asset preferences; The tipping point for larger bull markets such as Verkle Tree and PBS is still in the later round (expected to be 2026-2027). three ️⃣ My judgment on the future trend of ETH (combined with Pectra)—— In my previous article, I also wrote that ETH is evolving from an "asset" to an "infrastructure protocol", and Pectra is a key link in this evolution, similar to "quietly burying the wire, igniting in the future". In 2025, ETH will still lean towards a structurally volatile market, and Pectra is more like an ambush point rather than a market explosion point; The real outbreak may occur when the next bull market comes along with the upgrade of Verkle Tree+PBS+Rollup fusion. Write at the end—— In summary, Pectra is a 'structural upgrade' rather than a 'narrative upgrade', and its true meaning lies in building the future operating system for ETH, rather than creating short-term hype. It may not be the climax of the market, but it is likely to be one of the underlying turning points for the future outbreak of the ETH ecosystem. Ethereum was initially just a vision for a 'decentralized world computer'. But now, it is gradually becoming a "global consensus layer+settlement layer+status layer+modular ecosystem center" In other words, the value of ETH itself is not only the payment currency of gas fees, but also a "backbone protocol of financial and data sovereignty", just like TCP/IP to the Internet today. If you are a long-term advocate, the main value line of ETH is not "how much U it is worth", but "in an era of multi chain, modular, and data sovereignty, it is the" law+land+currency "of a modular world, not just L1, but the" digital financial sovereignty layer ". It is not like BTC becoming a narrative symbol, but more like the truly 'used soil' in the Web3 world. It is becoming the financial hub, legal foundation, and operating system of the entire multi chain era.