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Pectra Upgrade Goes Live, Yet ETH Price Remains Stagnant

Ethereum’s recent Pectra upgrade failed to boost its price significantly, with only a 5% increase observed since its launch. Factors like macroeconomic headwinds and lagging user growth compared to competitors may be to blame. Despite leading in Total Value Locked, Ethereum needs clear signs of user adoption for its price to rally.

The recent launch of the Pectra upgrade on Ethereum (ETH) has not triggered the expected price surge, as many in the market would’ve hoped. In fact, after the upgrade went live on May 7, there was minimal movement in ETH’s value—it actually fell slightly by about 2% on that day, only to recover a bit later to about $1,936. Overall, this tricky situation has resulted in just a 5% increase since the upgrade’s launch.

Some believe that the muted market response to Pectra can be linked to larger macroeconomic issues, including ongoing global trade uncertainties related to the tariff war. But the signs were there before this turmoil, as ETH’s price had already shown weakness in comparison to other cryptocurrencies. It appears that Ethereum has struggled in user growth against competitors, especially other layer 1 blockchains, for several months now.

When we check the numbers from July 2023 to April 2025, ETH’s active addresses have mainly fluctuated between 400,000 and 600,000. This is significantly lower compared to rivals like Tron (TRX), which achieved over 2.5 million active addresses, and Ton (TON) that hit a peak of 3.6 million active addresses. They have shown much more robust user activity during this period. So, one might question why Ethereum is lagging behind despite its well-known potential.

Despite these challenges, it’s worth noting that Ethereum continues to lead in Total Value Locked (TVL), holding a hefty $52.6 billion. This reflects ongoing confidence from institutional investors in the network’s reliability and future. However, the poor activity at the address level hints at a waning interest from retail investors, which is usually crucial for driving the price upwards during bullish trends.

The Pectra upgrade definitely delivered some useful improvements, like reduced blob fees and a more user-friendly wallet experience. However, it hasn’t tackled a key issue that seems to hinder user growth—bridging assets and data across Ethereum’s somewhat disjointed Layer 2 system, which is a significant hurdle.

As far as the ETH price is concerned, it appears that investors are on the lookout for tangible signs of increased network adoption, which would reflect user growth—not just a pile of TVL that remains locked away. Without addressing the bridging problem, it’s tough to see substantial price movement ahead.

Shanice Murray is a dynamic multimedia journalist with a passion for storytelling through various platforms. Originally from Jamaica, she completed her studies at the University of the West Indies before relocating to the United States to further her career in journalism. With over 10 years of experience in both print and digital media, Shanice has earned multiple awards for her innovative approaches to reporting on cultural issues and human interest stories.

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