Ethereum's Pectra upgrade, set to launch on May 7, aims to enhance staking efficiency and user experience, potentially reigniting interest in the network. Trading at $1,813, ETH has struggled to reclaim its all-time high of $4,870 from 2021 and has underperformed compared to rivals like Solana and BNB. The upgrade includes EIP-7702, which allows regular user wallets to temporarily mimic smart contracts, improving user accessibility and enabling gas sponsorship. Other proposed changes simplify validator onboarding and expand staking capabilities, which could attract institutional investors. Pectra's goal is to increase ETH demand by improving usability and reducing its available supply through enhanced staking and increased transaction activity, which could raise its burning rate. However, similar upgrades in the past have resulted in temporary price spikes rather than sustained momentum. History suggests that the timing of the Pectra upgrade could coincide with broader market trends, possibly marking a turning point for ETH's price trajectory.

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