Ethereum struggles to stay on par with the market. The upcoming Pectra update may provide the spark it needs.
Ethereum’s (ETH) Pectra Upgrade, which is scheduled for this coming week, has long been on the traders’ radar. Tracy Jin, the COO at MEXC and a member of crypto.news, gave her insight on Tuesday, 5 May, regarding the potential upgrade. Jin also believes that Ethereum is a great opportunity for the market to change.
“Bitcoin’s dominance currently sits at a year-high of 63,9% while altcoins continue to struggle to capture any sustained market momentum outside trend-based and speculative movements. With investor sentiment cautious and capital concentration increasing around Bitcoin, Ethereum’s Pectra upgrade offers a rare opportunity to flip the script in favour of altcoins,” Tracy Jin MEXC
Jin believes that the upgrade will allow for the next generation Web3 innovation. The upgrade could revive Ethereum’s ecosystem by re-engaging institutional investors. Ethereum could regain dominance in the market for altcoins if activity among developers increases.
Jin thinks Ethereum can regain $2,200 if it is upgraded smoothly. The upgrade could also pave way for the emergence of a new altcoin era. But there are still risks.
“However, if the upgrade encounters technical issues or delays like previous rollouts, Ethereum risks losing further market ground to fast-rising ecosystems like Solana, and continuing its underwhelming market performance, potentially pushing the price below the $1,300 support zone,” Tracy Jin.
What changes will Pectra bring to Ethereum?
Pectra is a combination two upgrades – Prague and Electra – which bring significant changes to Ethereum’s validator system. The upgrade raises the stake for validators from 32 to 2,048 Ethereum. The upgrade will allow large validators more ease in spinning up nodes.
Upgrades to Ethereum wallets will also include features, such as account abstraction. It will also improve network scalability and enhance the capabilities of Ethereum smart contracts.
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Source: crypto.news
