Let’s talk about two important benefits that Ethereum is about to usher in.
The first is the approval of Ethereum ETF staking. This could significantly increase demand for spot Ethereum ETFs. While an ETH staking yield of around 3.2% per year may not seem like much, the fact that ETH has a lower annual inflation rate and the benefits of staking may make ETH more attractive to some institutions than BTC.
According to the SEC commissioner, Ethereum ETF staking “can always be reconsidered,” so its approval is only a matter of time.
The second positive is the release of Pectra, the next hard fork of Ethereum. This major upgrade is expected to occur by the end of the fourth quarter of this year or the first quarter of 2024.
Pectra will introduce several major changes:
1. Make Ethereum account addresses more programmable
2. Increase the maximum stake for ETH validators from 32 to 2048 ETH
By making Ethereum account addresses more programmable, Pectra will bring significant on-chain user experience improvements. For example, it will support sending transactions in batches, develop the wallet’s social recovery feature, and allow dApps to pay users for their gas fees. Experience upgrades are what cryptocurrencies need to achieve mass adoption.
