Typical of every New Year, analysts predict different assets in the cryptocurrency ecosystem. Usually, the projections rely on technical analysis, historical precedence and ongoing market dynamics. However, Ethereum (ETH) has received an unusual prediction that anticipates a bullish 2025 for the altcoin.
Pectra upgrade: Leap in functionality and efficiency
Stani Kulechov, co-founder of Aave, highlighted some key developments to watch out for in the Ethereum blockchain in a post on X. Notably, Kulechov believes the coming Pectra upgrade could enhance price action in 2025.
Ethereum will have a great start for 2025.
The Pectra upgrade will enable EOAs to function like smart contracts, making smart wallets scalable and bringing better UX and safety for users.
The introduction of blob spaces will significantly enhance scalability. These will… pic.twitter.com/x1IFUgTlzJ
— Stani (@StaniKulechov) January 1, 2025
He insists that Pectra, whose implementation would commence this first quarter, could enhance the network’s scalability, user experience and security.
Kulechov emphasizes that Pectra will allow externally owned accounts (EOAs) to function like smart contracts. EOAs, like regular wallets, have limited functions when sending and receiving funds. They are unable to execute complex logic or interact like smart contracts.
However, the Pectra upgrade would help the protocol overcome these hurdles. This will improve interaction with decentralized apps (dApps), provide stronger security and improve user experience.
Additionally, Ethereum’s introduction of “blob spaces” will shift the dynamics regarding limits on the Consensus Layer, allowing for efficient data storage. This will benefit not only the Ethereum mainnet but all Layer 2. It will enhance a more efficient network capable of handling more transactions at lower cost.
Vision for broader Ethereum adoption
These points highlighted by Kulechov will position Ethereum for broader adoption and performance in 2025 and beyond. More adoption could ignite a price rally for the altcoin, which is already gaining traction among institutional investors.
Kulechov’s prediction, however, was silent on possible price projections for ETH.
As of this writing, ETH trades at $3,334.55, a 2.55% decline in the past 24 hours. While many are indecisive about how Ethereum’s price could turn out, Mike Novogratz’s Galaxy Research predicts the coin could soar to $6,000 this year.
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