Ethereum’s 2025 Pectra upgrade enhances staking efficiency, with 34.7 million ETH (28% of supply) staked, yielding 3.2% APR. This locks supply, supporting ETH’s $3,600 price, with a $4,495 target by Q4. The Merge (2022) and EIP-1559 burned 4.62 million ETH, creating deflationary pressure during high DeFi activity. Unlike Bitcoin’s scarcity-driven model, ETH’s utility drives demand, with $80 billion TVL in DeFi. Staking rewards attract institutional validators, but high gas fees ($3–$10) hinder retail adoption. ETH’s price resilience (50% surge in Q2) reflects upgrade optimism, though volatility risks remain if upgrades falter.

Explore the EIPs / ERCs mentioned in this cast: