Ethereum Pectra Upgrade: A New Chapter in Stake Optimization and Layer-2 Scaling

Key Points

• On May 7th, Ethereum completed the Pectra upgrade, increasing the maximum effective balance of validators to 2048 ETH and doubling the blob space to support Layer-2 scaling.
• Over 11,000 validators have completed the merge, the number of active validators has decreased by about 16,000, but the total staked ETH remains unchanged, with the average stake rising to about 32.4 ETH.
• The daily number of blobs published has increased from about 21,000 to 28,000, but the usage demand is still below the new target of 6 blobs per block.
• The transaction volume of Layer-2 continues to grow, with total blob fees nearly zero. Future fee increases will depend on the rising demand for blobs from Rollups.

Introduction

Ethereum successfully implemented the Pectra hard fork on May 7, bringing improvements to validator operations and staking flexibility, an optimized user experience for smart accounts, and enhanced capacity for Layer-2 scaling. This upgrade includes the implementation of 11 EIPs and marks another important milestone following the launch of the Beacon Chain, continuing Ethereum's development trajectory through phases such as the Merge, Shapella, and Dencun.

This article will analyze the impact of Pectra's initial launch, focusing on the effects of the maximum effective balance adjustment and the doubling of blob space on the staking mechanism and Layer-2 ecosystem, while tracking relevant key on-chain metrics.

staking and validator optimization

One of the main goals of the Pectra upgrade is to optimize the validator operation process and enhance the flexibility of participation in the PoS system. EIP-7251 increases the maximum effective staking balance for validators from 32 Ether to 2048 Ether, which could have a profound impact on the network's economic structure. Stakers can now "top up" existing validators or merge multiple validators into one to earn compound rewards more efficiently.

Validator Merge Process

The specific steps for validator merging include:

1. Update the withdrawal receipt to type 0x02, indicating support for merge operations.
2. Choose the source validator and the target validator
3. Submit merge request, source validator enters exit queue
4. When the source validator reaches a withdrawable slot, it exits the active set, and the effective balance is transferred to the target validator.

This mechanism enhances the capital efficiency of the PoS system, allowing large stakers to participate in network maintenance with fewer validation nodes, while reducing hardware and operational costs.

Impact on the staking economy

Since the Pectra upgrade, the total number of active validators has decreased by 16,344, which may also be influenced by EIP-7002 simplifying the validator exit process. The number of active validators has begun to decouple from the total staked ETH, with an increasing amount of staking being concentrated among a few high-balance validators.

This centralization not only enhances the capital efficiency of stakers but also helps alleviate network load and peer-to-peer communication pressure. Currently, the average staking amount for each validator has increased from about 32 Ether to about 32.4 Ether, but the effective staking balance for most validators still remains below 128 Ether. It is expected that as more node operators merge their stakes to increase returns, the average will continue to rise, and the distribution structure of validator stakes will also change.

Blob Expansion and Layer-2 Development

Blob throughput doubled

Another core goal of the Pectra upgrade is to further support Layer-2 scalability. EIP-7691 raises the target number of blobs per block from 3 to 6, and the upper limit from 6 to 9, significantly increasing the supply of blob space. This means Layer-2 will have greater transaction capacity and lower costs of data availability.

After the upgrade, the number of blobs uploaded daily by Rollup increased from approximately 21,300 to 28,000 (an average of 4 blobs per block), and the blob space used increased from about 2.7 GB to around 3.4 GB. From the hourly frequency data, the average number of blobs per block is gradually approaching the new target value of 6, indicating that the demand for Layer-2 transactions is on the rise.

However, due to the usage rate not yet reaching the target, blob fees are currently at a very low level. More than 40,000 blocks did not contain any blobs, while about 52,000 blocks included 6 or more blobs, indicating that there is still room for growth.

When the number of blobs submitted per block exceeds the target value, the blob fee market will be triggered, increasing blob fees. In addition, EIP-7623 aims to combat non-optimized data storage methods by raising calldata costs, further encouraging Rollups to use blob space as a more economical data availability solution.

Impact on Layer-2

The increase in Blob supply directly affects Rollup costs. The average blob fees have further decreased, making it almost free for major Rollup projects. The total blob fees paid on Layer-2 have dropped to very low levels. Lower costs mean that Layer-2 has a higher profit margin while being able to handle more transactions.

The throughput of some Layer-2 projects has increased, with the number of transactions surging from 8 million to 14 million. This trend is similar to the situation when the Dencun upgrade first introduced blobs. If Ethereum hopes to derive more value from blob fees, Rollups need to gradually increase their usage of blobs, pushing towards new block limits.

Conclusion

Pectra is an important step for Ethereum towards the goal of a globally universal settlement layer. This upgrade introduces greater flexibility and efficiency to the staking ecosystem, making it more suitable for institutional participation, while laying the groundwork for scalability and a better user experience.

Although early data shows that the integration of validators and the usage rate of Layer-2 blobs are on the rise, many anticipated economic changes and the effects of scaling still need time to gradually manifest. Pectra may not have triggered widespread attention, but it is paving the way for the next phase of adoption and growth for Ethereum.