According to jesse.base.eth, the Ethereum Pectra upgrade has successfully doubled blob capacity and enabled smart wallet functionality for every user wallet, with the upgrade executed flawlessly (source: @jessepollak, May 7, 2025). This development directly increases network throughput and efficiency, which can lower transaction costs and benefit DeFi and NFT traders. Looking ahead, the Ethereum team targets a more than 10x blob capacity increase and over 2x L1 capacity boost by year-end, potentially positioning Ethereum as the leading onchain platform for high-volume trading and institutional adoption. Traders should closely monitor Ethereum ecosystem assets and layer-2 solutions for increased activity and volatility as these upgrades roll out.

According to Vitalik Buterin, Ethereum's Layer 1 is undergoing significant scaling improvements, including the development of EIP-4444 for history expiry, advancements in statelessness with a new binary tree EIP, and client efficiency upgrades. These enhancements aim to support higher L1 gas limits while maintaining decentralization.