On October 18, 2024, Ethereum developers announced plans to implement Ethereum Improvement Proposal (EIP) 7742 during the upcoming Pectra fork, aimed at enhancing network scalability.
The proposal will allow the Ethereum consensus layer to dynamically adjust blob gas targets and maximum values, addressing the current limitations of blob capacity, which Ethereum co-founder Vitalik Buterin warned could soon hinder scalability.
As part of the upgrade, a potential increase in the blob count is expected, although significant changes to gas limits or slot times are unlikely. The Pectra upgrade is projected for late 2024 or early 2025.
However, the shift towards cheaper layer 2 transactions has drastically reduced Ethereum's share of total network revenue, now at a 10:90 ratio favoring layer 2s, as noted by VanEck's Matthew Sigel. This trend has led to a revision of Ether's price predictions, with the target potentially dropping from $22,000 to $7,330 if the current revenue split persists.
As of now, Ether is trading at $2,615, reflecting a 0.5% decrease over the last 24 hours.