AAVE Co-Founder Makes ETH Prediction: Watch This Development!

As with every new year, analysts make predictions about different assets in the cryptocurrency ecosystem. Predictions are usually based on technical analysis, past precedents, and ongoing market dynamics. However, the Aave co-founder made an unusual prediction for #Ethereum .

In a post on X, Stani Kulechov highlighted some important developments to watch out for in the Ethereum Blockchain. The AAVE co-founder particularly drew attention to the upcoming Pectra upgrade. He expressed his views that this upgrade will boost price action in 2025. He insists that Pectra, which will be implemented in the first quarter, can improve the scalability, user experience, and security of the network.

Kulechov emphasizes that Pectra will enable externally owned accounts (EOAs) to function like smart contracts. EOAs, like regular wallets, have limited functionality when sending and receiving funds. They cannot execute complex logic or interact like smart contracts. However, the Pectra upgrade will help the protocol overcome these hurdles. This will improve interaction with decentralized applications (dApps) and provide stronger security. It will also improve the user experience.

Additionally, Ethereum’s introduction of “blob spaces” will change the dynamics around boundaries at the Consensus Layer, allowing for efficient data storage. This will benefit not only the Ethereum mainnet, but all of Layer 2. It will develop a more efficient network that can process more transactions at a lower cost.

These points emphasized by the $AAVE co-founder will position Ethereum for wider adoption and performance in 2025 and beyond. Further adoption could spark a price rally for the altcoin, which is already gaining traction among institutional investors. However, Kulechov’s prediction remained silent on possible price projections for $ETH .