No Increase in Network Participation Noted Despite Ethereum's Successful Pectra Update

Ethereum's recent Pectra upgrade, which introduced 11 Ethereum Improvement Proposals (EIPs) for better user experience and a future-proof network, has not resulted in a spike in network engagement. Data from crypto insights platform Glassnode reveals that user engagement dropped following the upgrade's implementation.

The Pectra upgrade, initially set for April 30 but delayed to May 7 due to technical issues, made significant improvements including enabling account abstraction, allowing more substantial staking of ether, and enhancing layer-1 and layer-2 chain compatibility. Furthermore, it reduced data verification costs for layer-2 rollups and allowed users to pay gas fees in crypto assets other than ETH.

Despite these improvements, Glassnode reports a decrease in new and resurrected Ethereum addresses, although Ethereum’s Realized Cap has shown a slight rise.