Ethereum News: Hoodi Testnet Launched for Pectra Upgrade, Gas Fees Drop Significantly

Ethereum continues to make strides in its development with the launch of the Hoodi Testnet for the Pectra upgrade, aiming to enhance staking mechanisms and improve wallet user experience. Meanwhile, gas fees have plunged significantly since the Dencun upgrade.

Ethereum Launches Hoodi Testnet for Pectra Upgrade Testing

Ethereum has unveiled the Hoodi Testnet to test the Pectra upgrade, which introduces key Ethereum Improvement Proposals (EIPs) to enhance staking mechanisms and improve wallet user experience. The Sepolia testnet upgraded to Pectra a week ago, and Mekong testnet was launched in November to preview Pectra fork updates. These tests ensure seamless upgrades and mainnet launches.

Ethereum Gas Fees Plunge by 95% Since Dencun Upgrade

A significant shift in the Ethereum ($ETH) ecosystem has resulted in a 95% decrease in gas fees since the launch of the Dencun upgrade on March 13, 2024. According to Satoshi Club, the average gas fee has dipped from 72 gwei to only 2.7 gwei over the year. The purpose of the upgrade was to improve scalability and minimize transfer costs in L2 networks.

Ethereum Faces ETF Outflows, But Staking Hits New High

Despite a 30% price drop, Ethereum’s staked ETH climbed to 33.98 million, indicative of strong investor confidence in its long-term potential. However, ETH ETFs saw over $524 million in outflows over the past three weeks, raising questions about short-term price trajectory. Staking activity increased despite price weakness, revealing a divergence between price and staking.

Ethereum (ETH) Falling Without Major Liquidations

The price of ether (ETH) has been steadily declining for months, with a recent worsening of the plunge. However, unlike previous events, the latest dip did not trigger significant liquidations, according to market intelligence firm IntoTheBlock. The moderate liquidations can be attributed to a decline in high-risk loans across lending platforms, as investors adopt a risk-averse stance due to macro concerns regarding potential global tariff tensions.