Ethereum Smashes Barriers: Over One-Third of All Ether Now Staked Following Recent Update
The Pectra upgrade for Ethereum, activated on May 7, 2025, has brought about significant improvements in both staking efficiency and network security. This upgrade, implemented through the Prague and Electra forks, has optimised staking mechanics, enhanced scalability, and bolstered developer tooling.
One of the key benefits of Pectra is the optimisation of staking mechanics. By making validator activity more efficient and reducing overhead in the consensus process, it helps maintain network security by strengthening validator incentives and uptime.
Another significant aspect of the upgrade is the dual-layer hard fork, which combines improvements from both the execution and consensus layers. This integration allows smoother coordination between transaction processing and block validation, enhancing the reliability and security of staking activities.
The upgrade also includes EIP-7702, an account abstraction feature that allows externally owned accounts to temporarily execute smart contract code. This innovation enables functionalities like gas sponsorship and transaction batching, making wallet interactions more flexible and less error-prone, thereby bolstering user security in staking and other interactions.
Pectra also builds on prior upgrades like Dencun, which introduced EIP-4844, blob transactions. This leads to faster transaction throughput and reduced network congestion, indirectly supporting staking network health by preventing performance bottlenecks that could jeopardise validator participation and consensus security.
The upgrade provides improved tooling for developers, fostering a healthier ecosystem which attracts more validators and node operators, thus decentralising and reinforcing network security.
Since the Pectra update, Ethereum staking has seen a rapid growth. The percentage of Ethereum supply in staking shot up to a historic record of 29.5% in July 2025, marking a significant turnaround from the decline observed earlier in the year. The staking proportion was below 28.1% at the beginning of 2025 and dropped to 27.2% in March.
The increase in staked Ether makes the network more secure against malicious attacks due to increased difficulty and cost. Experts see this achievement as a growing confidence in the protocol and a key step forward in staking efficiency and profitability.
Pectra has made staking much more profitable and simple for both large institutional players and small users. It also allows validators to merge numerous nodes into fewer, more powerful and efficient validators.
The Ethereum community is developing incentives and mechanisms to diversify operators and ensure decentralization. The Pectra upgrade has undoubtedly contributed to greater staking efficiency by streamlining validator operations and enabling smart wallet features, while strengthening network security through improved consensus finality, scalability, and reduced transaction complexity. These advancements are expected to support Ethereum's growth and dominance as a secure, decentralized smart contract platform.
- Given the bolstered network security and enhanced scalability provided by the Pectra upgrade, the integration of safety-focused technology like EIP-7702 account abstraction feature further bolsters user security in staking and other interactions.
- The dual-layer hard fork within the Pectra upgrade, which combines improvements from both the execution and consensus layers, is designed to enhance security and reliability, not only of staking activities, but also of the entire network.
