How Ethereum Is Faring Since Its Major Pectra Upgrade
The Pectra upgrade on Ethereum has enhanced the network's capacity for handling "blobs," which are units of ephemeral data storage, improving scalability and reducing transaction costs. The upgrade has enabled layer-2 networks and rollups, such as Base, Arbitrum, and Optimism, to process thousands of transactions for minimal fees. Blob costs have dropped significantly, with daily transactions costing just a fraction of a penny compared to $16,000 before the upgrade. Blob usage increased by 33% since Pectra's launch, reaching approximately 28,000 daily purchases. However, this has increased the data burden on validators, leading to consolidation among smaller validators into larger operations. Despite concerns about centralization, this may enhance decentralization within Ethereum. Ethereum's price surged from around $1,800 to nearly $2,800 in May, currently sitting at $2,510, reflecting a 27% increase over the month.
