Anthony Joshua put his IBF, WBA, WBO and IBO belts on the line but retained his titles in style with a knockout in the seventh round.
Russian star Povetkin, who made a bright start in the opening rounds, had never before been stopped inside the distance.
Heavyweight champion Joshua grew in confidence as the fight progressed and delivered a stunning combo in Round 7 that will surely see him set up a mega-clash with the winner of Deontay Wilder vs Tyson Fury.
Following his victory, the British star said: “Povetkin is a very tough challenger, he proved that with good left hooks and counter punches.
“I came in here to have fun, and give it my best. I knew he was strong to the head but weak to the body. I was just mixing it up.
“It could have been seven, maybe nine, maybe 12 rounds to get him out of there, but the ultimate aim was to be victorious.
“And I got my knockout streak back!”
With 22 professional bouts under their belts, Wladimir Klitschko, Lennox Lewis and Mike Tyson were still chasing a world title.
Joshua, by contrast, has now defended his six times.
Anthony Joshua stopped Alexander Povetkin in Round 7
What is Anthony Joshua’s net worth?
According to Forbes, Joshua’s net worth is in the region of £30million ($39m).
The 28-year-old took home a whopping £20m following his victory over Parker and he reportedly earned a similar amount from his bout with Povetkin.
Joshua is a marketing gold mine with more than a dozen sponsorships to his name, including Under Armour, Jaguar, Beats, StubHub, Hugo Boss, Lucozade Sport and Audemars Piguet.
Joshua vs Povetkin: The British star celebrates his win
Who will Anthony Joshua fight next?
It is widely anticpated that Joshua will fight the winner from Wilder vs Fury, with their bout now confirmed for December 1.
Pushed on who he wants to fight next, Joshua admitted: “There’s no contract signed at the minute.
“My number one would be Wilder, that’s it.”
The British star has another Wembley date booked for April 13 next year.