Ethereum’s groundbreaking Pectra upgrade successfully launched on May 7, 2025, marking a significant milestone for the network. The upgrade activated key features, including smart account functionality, that promise to enhance user experience and drive scalability within the ecosystem. The activation marks the start of a new era for Ethereum, with potential implications for market behavior and various sectors connected to the platform. Pectra introduces smart accounts at a deeper protocol level, improving Ethereum’s overall scalability by utilizing layer-2 solutions. 1inch co-founder Sergej Kunz commented that ‘Pectra introduces ‘smart account’ functionality at deeper protocol levels and improves Ethereum’s scalability through layer-2 solutions.’ The upgrade is anticipated to have a positive impact on DeFi sectors and staking platforms as well.