Ethereum’s Pectra Upgrade Triggers Surge in Network Activity and Token Burn
Following the May rollout of Ethereum’s Pectra upgrade, the network has witnessed a sharp spike in transaction volume and ETH burn rate. Daily ETH burn, which had averaged around 1,000 ETH, skyrocketed to over 110,000 ETH in a single day post-upgrade — sparking renewed interest in Ethereum’s supply dynamics and deflationary potential.
Pectra focused on enhancing user experience and transaction efficiency without fundamentally altering the underlying network architecture. The upgrade led to a significant increase in transaction frequency, which in turn contributed to a surge in gas fee-based ETH burns. A key driver of this behavior is the implementation of EIP-7702, which has made account abstraction and smart contract interactions more seamless for users.
The Ethereum Foundation has continued to monitor the network closely to ensure post-upgrade stability. The next planned upgrade, Fusaka, is expected to introduce even more substantial improvements to the Ethereum protocol.
As a result, analysts suggest that Ethereum’s structural refinements could support long-term fundamental growth, while also providing a bullish narrative for ETH’s price action — especially in a market environment where supply constraints are increasingly important.
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