Pectra is Boosting Ethereum Network, Pushing the Price Toward $2,000
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The latest upgrade to Ethereum, Pectra, implemented on May 7, has begun to influence the dynamics of supply on the network.
On-chain data shows a significant contraction in the supply of Ethereum in circulation, which is currently at an 18-day low of approximately 120.69 million ETH.This decline is due to increased user activity on the first layer network.
Glassnode reported that on May 7, the number of unique active addresses reached a 30-day high of 474,044, signaling a resumption of user activity.
The surge in activity also affected the burn rate of ETH. According to Etherscan, the daily amount rose to its highest level since early May, further tightening the supply in circulation.
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Although these developments suggest potential upward pressure on the price of ETH, market analysts advise caution.
In summary, the Pectra upgrade has led to increased network activity and reduced circulating supply, factors that could influence Ethereum’s price trajectory. However, broader market conditions and investor sentiment will play a decisive role in determining the extent of price movements.
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