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Ethereum raises staking cap to 2,048 ETH

Ethereum raises staking cap to 2,048 ETH

GrafaGrafa2025/05/12 13:30
By:Mahathir Bayena

The recent Pectra upgrade on Ethereum (CRYPTO:ETH) raised the maximum staking limit for validators from 32 ETH to 2,048 ETH, a 64-fold increase designed to simplify staking operations, especially for institutional participants.

Mallesh Pai, senior research director at Consensys, stated that the upgrade is essentially a cleanup of background tasks performed by validators and does not grant larger validators any new advantages.

“Rewards continue to be proportional to the amount of ETH you have. […] it's not the case that if you're a big validator, you somehow have any more advantages than you did before,” Pai said.

He explained that many large validators already operate multiple virtual keys from single physical machines, and Pectra allows consolidation of these keys, potentially reducing the validator count to around 30,000 without harming decentralisation.

Pai added that this consolidation reduces auxiliary work and lets network participants focus on core issues like lowering gas fees.

The upgrade also introduces EIP-7702, enabling wallets to function like smart contracts, allowing users to pay fees in tokens other than ETH and batch transactions for improved user experience.

Artemiy Parshakov, vice president of institutions at staking service P2P.org, noted that the increased staking cap makes institutional staking easier and less risky.

This change could facilitate integration of Ether staking within exchange-traded funds (ETFs), a topic of interest in 2025, with firms like BlackRock advocating for staking-enabled Ether ETFs.

However, the U.S. Securities and Exchange Commission has yet to approve staking amendments for these ETFs.

Bloomberg analyst Eric Balchunas commented that staking approval might have “a little impact” on ETF inflows, but broader Ethereum performance challenges remain.

At the time of reporting, the Ethereum (ETH) price was $2,530.51.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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