Pectra introduced significant technical improvements to the Ethereum blockchain including an increase in the number of blobs – datasets – that can be included in an ETH block.
This is a major efficiency boost for layer-2 protocols like Arbitrum as they can now offer faster transaction execution speeds at a lower cost.
Moreover, Pectra also implements automatic token burns by using a portion of the network’s collected gas fees. Supports of this technical upgrade say that this could eventually make Ethereum a deflationary token.
However, despite these positive changes to the network’s architecture, its DeFi ecosystem, the one that should benefit the most from this development, has experienced net outflows according to data from DeFi Llama.
Ethereum’s network total value locked (TVL) expressed in ETH has dropped by 15% from its April 8 peak. The total figure currently stands at 24.84 million ETH compared to 29.94 million ETH tokens back then.
