Hey Edge readers,

Crypto markets are still facing turbulence, and with many projects struggling to regain momentum, it’s easy to get caught up in the bearish sentiment. But amidst the volatility, Ethereum’s builders keep shipping. This week, we’re diving into Ethereum’s upcoming Pectra upgrade, a major overhaul that promises to make the network faster, cheaper, and more user-friendly. We’ll break down Pectra’s key improvements, how it enhances staking and Layer-2 scalability, and what users and developers can expect as Ethereum continues to evolve.

Stay sharp. 🫡

-The Exponential team

Ethereum’s Pectra upgrade: What you need to know

Ethereum is gearing up for its next major upgrade, Pectra, set to go live on mainnet in 2Q 2025. This upgrade combines improvements to both Ethereum’s execution layer (“Prague”) and consensus layer (“Electra”), aimed at improving ease of use for both users and node operators of the network.

What is Pectra?

Pectra is a new Ethereum upgrade that arrives a year after the Dencun upgrade. It combines two separate updates: Prague and Electra. Prague is focused on improving the network’s execution layer, while Electra is focused on enhancing the consensus layer. Pectra introduces a range of Ethereum Improvement Proposals (EIPs) designed to make the network more efficient and user-friendly, including upgrades to wallets, staking, transaction fees, and overall performance.

Key upgrades

Who benefits from Pectra?

• Users: Lower fees and a smoother experience, especially on Layer-2s. Wallets will become more user-friendly with features like auto-payments and social recovery.

• Developers: More powerful smart contract capabilities, better cryptography tools, and improved infrastructure for building scalable apps.

• Validators: Higher staking limits, reduced overhead, and a simpler exit process, making staking more efficient and flexible.

Pectra is one of Ethereum’s biggest upgrades, improving scalability, usability, and security. It sets the stage for a faster, cheaper, and more accessible Ethereum. With these improvements, the network is better positioned to support growing demand and future innovations in decentralized applications.

In the news 🗞️

• Trump establishes US Bitcoin reserve. President Trump signed an executive order creating a Strategic Bitcoin Reserve, marking a pivotal step toward integrating Bitcoin into the US financial system. The reserve will initially include cryptocurrency forfeited in government criminal cases. The move signals Bitcoin’s growing role in global finance, with further details expected at the upcoming White House Crypto Summit on March 7.

• Bitwise enters DeFi with Maple Finance partnership. Crypto asset manager and ETF provider Bitwise has made its first allocation into DeFi by partnering with Maple Finance. The move marks a major step toward institutional adoption of on-chain credit, with Maple highlighting the unique yield opportunities in DeFi that don’t exist in traditional finance. Bitwise underwent a year-long due diligence process before making the allocation, signaling growing institutional confidence in DeFi lending markets.

• SSV Labs proposes decentralized staking module for Lido. Clusterform, a subsidiary of SSV Labs, has proposed a permissionless staking module for Lido, leveraging SSV Network’s Distributed Validator Technology (DVT) to expand node operator participation. If approved, this would be the first third-party module for Lido’s Staking Router, enhancing decentralization and security for Ethereum staking. The proposal follows the launch of Lido V3 and aligns with growing institutional interest in Ether staking.

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