- Ethereum has seen a decline in network activity since the Pectra upgrade with fewer new and returning users engaging.
- However user retention has improved as more existing users continue to stay active longer on the platform.
Despite the recent Pectra upgrade aimed at enhancing the Ethereum ecosystem, network activity remains sluggish. According to blockchain analytics firm Glassnode, the upgrade has not led to a noticeable surge in user engagement. In fact, some key indicators have declined, painting a mixed picture of Ethereum’s current state.
User Activity Slows Down After the Pectra Upgrade
Glassnode’s latest data, released on May 20, 2025, reveals that Ethereum has seen a 1.8% decline in first-time user transactions compared to the monthly average over the past year. Additionally, the number of revived wallets—those returning to activity after dormancy—has fallen by 8.4%. These figures suggest that the network is struggling to attract both new and returning users following the upgrade.
The report also notes a broader trend in the cryptocurrency space: users are holding onto their assets longer, though it’s unclear whether this behavior is directly tied to the Pectra upgrade or reflective of current market conditions.
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A Silver Lining: Fewer Users Are Leaving Ethereum
While fewer users are joining or rejoining the network, there’s some good news. User churn—the rate at which active users stop using the platform—has decreased by 8.5%. This drop means that although Ethereum isn’t seeing a major influx of new participants, existing users are sticking around longer.
This shift in behavior is visualized in a chart shared by Glassnode titled “ETH: Month-over-Month Activity Retention.” The diagram shows that from February to April, network engagement across all user categories declined. However, mid-May brought a slight rebound. Notably, the segment representing inactive users (in pink) shrank by the end of the timeline, backing the claim that fewer people are abandoning the platform.
Ethereum’s Future Hinges on More Than Just Upgrades
The takeaway from Glassnode’s analysis is clear: technical upgrades alone may not be enough to drive adoption or revive activity on the Ethereum network. While Pectra may have laid groundwork for future growth, the short-term impact on user engagement has been limited.
As Ethereum continues to evolve, its ability to attract new users and re-engage old ones will be key to sustaining long-term momentum—even if recent signs suggest the platform is currently in a holding pattern.
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