Matrixport: Vitalik’s Bitcoin-Like Simplification of Ethereum Drives 60% ETH Surge Amid Pectra Upgrade

EIP-4850 and EIP-7691 spark protocol efficiency and value capture as ETH climbs; liquidations hit $221MAccording to a new chart report from Matrixport, Ethereum's over 60% price rally can be largely attributed to Vitalik Buterin’s vision of simplifying Ethereum’s architecture into a more Bitcoin-like model, as the Pectra upgrade continues to gain traction. But while the performance of ETH is undeniably strong, Matrixport warns there are underlying variables worth monitoring.Key Takeaways:Vitalik Buterin is guiding Ethereum Layer 1 toward a simplified architecture, emphasizing security and clarityETH has risen over 60%, partially driven by protocol simplification and EIPsEIP-4850 introduces revenue-sharing between Ethereum and Layer 2sEIP-7691 reduces L2 transaction fees by increasing blob capacityEthereum liquidations spiked to $221 million, an unusual event during a rallyVitalik's Simplified Vision for EthereumOn May 3, 2025, Ethereum co-founder Vitalik Buterin proposed a restructured Layer 1 model focused on minimalism, enhanced security, and long-term scalability. This shift mimics Bitcoin’s leaner architecture, aiming to reduce technical complexity while improving reliability.Vitalik’s proposals include:Protocol simplificationReduction of redundant computation at the base layerImproved synergy with Layer 2 solutionsThe Impact of EIP-4850 and EIP-7691Two key Ethereum Improvement Proposals (EIPs) are playing a critical role in boosting the ecosystem’s utility and investor confidence:🔸 EIP-4850Implements a revenue-sharing mechanism with Layer 2 networksHelps Ethereum retain economic value from off-chain activity🔸 EIP-7691Expands data block capacity (blobs) to lower Layer 2 feesEncourages more transactions to return to Ethereum mainnetImproves on-chain efficiency and throughputThese upgrades make Ethereum more attractive to both developers and institutional investors, supporting its bullish price action.