TLDR
- Investors bought over 3 million ETH in under two months as confidence grew ahead of the Pectra upgrade.
- The upgrade launches May 7, 2025 and will make wallets smarter and Layer 2s more efficient.
- Despite a 45% drop in Q1, long-term ETH holders increased their holdings by 22%.
- Some experts however say Pectra may not raise prices, but broader adoption will continue.
The Ethereum community has continued to demonstrate its unwavering commitment to the network as the countdown to the Pectra upgrade approaches.
Ethereum Accumulation Soars Ahead of Pectra Upgrade
The anticipation surrounding this upgrade has triggered a remarkable surge in investor confidence, with investors accumulating over 3 million ETH in just under two months.
On Tuesday, the official Ethereum account shared an update highlighting the significance of Pectra, emphasizing how this upgrade will unlock the true potential of Ethereum.
“Unlocking $490 billion of potential, Ethereum already secures $490 billion in assets, but too often, that value sits locked behind clunky UX. Pectra changes that. It makes those assets easier to move, use, and experience.” The account tweeted.
0/ the biggest ethereum upgrade since the merge is coming.
and this time, you’ll feel it.
it’s called pectra and here’s why it matters
a guest thread by @binji_x ↓ pic.twitter.com/xhn1kt3qgG
— Ethereum.org (@ethereum) May 6, 2025
The Ethereum network has always been known for its resilience and scalability, but with the Pectra upgrade, it is poised to redefine user experience.
“Upgrading a decentralized network that secures billions is like swapping an airplane engine mid-flight,” Ethereum.org stated, reflecting the immense challenge and the hundreds of developers working together. “Pectra is proof that Ethereum moves and it moves together. And this time, it moves for you.”
Ethereum’s upcoming transformation is not just a technical improvement but also a shift in how users interact with the network. The Ethereum team believes Pectra will be the foundation for the next era of the network, one that focuses not just on scale and resilience but also on user experience.
“The merge changed how the protocol works; Pectra changes how Ethereum feels. This isn’t just another upgrade, it’s a turning point,” the team remarked.
That said, investor behavior has reflected this optimism. According to CryptoQuant analyst Carmelo Alemán, Ethereum holders have shown remarkable resilience, with accumulating addresses refusing to sell despite market corrections. From December 16, 2024, when Ethereum hit its cycle high of $4,107, to March 10, 2025, when the price dropped to $1,866.7, long-term holders have increased their ETH exposure despite being in unrealized loss territory. In fact, the number of ETH held by these addresses increased by 22.54% from March to May, highlighting the deep faith investors have in Ethereum’s future prospects.
However, while many believe the Pectra upgrade is fueling this accumulation, some analysts remain cautious. Edward Chen, co-founder of Parataxis Capital, warned that the upcoming upgrade might not lead to a significant surge in ETH prices.
“Ethereum needs to find incentives for further adoption, as well as reasons for investors to hold onto the coins,” Chen said in an interview with Bloomberg. He emphasized that while the Pectra upgrade will enhance Ethereum’s efficiency and utility, broader adoption is still the key to sustained growth.
Pectra Upgrade Set to Revolutionize Ethereum’s User Experience
The Pectra upgrade, scheduled for May 7, 2025, includes several key improvements aimed at enhancing the Ethereum network’s usability. One of the most anticipated features is the integration of smart contract functionality into Ethereum wallets, making them more user-friendly and easier to restore. Additionally, Pectra will double the capacity of BLOBs, a crucial improvement for Layer 2 solutions.
Despite Ethereum’s ongoing price decline in the first quarter of 2025, falling 45% in Q1 and continuing its slide in April, many remain optimistic about its long-term potential. Analysts, including Darkfost from CryptoQuant, note that while Ethereum’s spot volume is cooling, this decline could help reduce market volatility and ease selling pressure, providing a stable foundation for future growth.
ETH spot volume is cooling
“Ethereum spot volume is cooling off, and that might actually be a good sign… This could also potentially ease the selling pressure that's been weighing on the market.” – By @Darkfost_Coc pic.twitter.com/xVXqT5oLry
— CryptoQuant.com (@cryptoquant_com) May 6, 2025
The Ethereum team has already set its sights on the next upgrade, Fusaka, slated for the second half of 2025. While the Pectra upgrade may not immediately drive a price surge, it represents an essential step toward making Ethereum more accessible and user-friendly, which could ultimately unlock the network’s vast potential.
At press time ETH was trading at $1,840 reflecting a 2.37% surge in the past 24 hours.
