Ethereum News
Pectra upgrade testnet shifts and validator changes
Ethereum developers moved the Pectra upgrade testing to the Hoodi testnet after the Holesky and Sepolia testnets encountered configuration issues. The Holesky testnet failed to reach finality following the Pectra activation, which prevented transaction confirmation. Developers also saw empty block generation in the Geth client during Sepolia testing in March 2025. These technical failures forced a shift in the deployment timeline.
The Pectra upgrade combines the Prague execution layer updates and the Electra consensus layer improvements. It includes 11 Ethereum Improvement Proposals (EIPs) that change how the network handles data and staking.
Technical specifications for Pectra
The upgrade modifies validator limits and data capacity to manage network load. EIP-7251 raises the maximum effective staking balance from 32 ETH to 2,048 ETH. This change allows large holders to use fewer validators, which reduces the number of signatures the network processes per epoch. EIP-7691 increases the average blob capacity per block from 3 to 6, while the maximum capacity rises from 6 to 9.
| Feature | Previous Limit | Pectra Limit |
|---|---|---|
| Max Validator Stake | 32 ETH | 2,048 ETH |
| Average Blobs per Block | 3 | 6 |
| Maximum Blobs per Block | 6 | 9 |
| Validator Deposit Delay | 2048 blocks | ~13 minutes |
EIP-7702 introduces account abstraction by letting externally owned accounts use smart contract logic during transactions. This allows users to pay gas fees with tokens other than ETH, such as USDC. EIP-7002 lets stakers initiate exits using withdrawal keys rather than active signing keys. EIP-6110 moves validator deposits to the execution layer to reduce activation wait times. EIP-7623 increases the cost of using calldata to encourage more use of blobs.
Staking concentration and issuance risks
Staking rates continue to rise, with Jerome de Tychey noting that staking exceeded one-third of the total supply in April 2026. Approximately 1.75 million more ETH enter the staking system every month. If these trends continue without changes, staked ETH could exceed 70 million by January 1, 2028, representing over 55% of the total supply. Proponents of EIP-8361 argue that high staking rates create dilution costs for non-staking investors and concentrate power in custody companies.
The current reward curve maintains yields even if all circulating ETH is staked, but developers propose reducing staking returns linearly by 50% once staking reaches certain levels. This aims to limit ETH issuance and preserve monetary neutrality. Critics argue that increasing the staking limit to 2,048 ETH favors wealthy participants and threatens decentralization. Will the concentration of validators under institutional control weaken the social layer’s ability to intervene during a fork?
Testnet migrations and future forks
The Ethereum Foundation scheduled the Pectra mainnet target for May 7, 2025, following successful tests on the Hoodi testnet. This follows the decision to move application developers to Sepolia and staking providers to Hoodi. The Holesky testnet began its sunset process after the Fusaka upgrade finalized on its network on October 1, 2025. Developers plan to support the existing Holesky testnet until September 2025.
Fusaka will follow Pectra, roughly six months after the Pectra deployment. Developers aim for an early November launch for Fusaka, targeting the window before the Devconnect event in Buenos Aires. Fusaka includes 11 EIPs, such as EIP-7825 for security and scalability. Developers excluded EIP-7907 and the EVM Object Format from the Fusaka release to streamline the development process. The next major milestone involves Glamsterdam, where developers consider a proposal to halve block time from 12 seconds to six seconds.
