Ethereum’s Pectra Upgrade Fails to Boost Network Activity as ETH Accumulation Trend Emerges
Despite high expectations for Ethereum’s Pectra upgrade, network activity has not seen the anticipated surge. According to Glassnode, key metrics indicate subdued user engagement, with new and returning wallet activity declining post-upgrade. However, an 8.5% improvement in user retention suggests holders may be accumulating ETH rather than transacting. As of May 21, 2025, ETH is trading at 2555.28 USDT, reflecting a cautious market stance amid these developments.
Ethereum Network Activity Fails to Surge Post-Pectra Upgrade
Ethereum’s much-anticipated Pectra upgrade has yet to catalyze increased network activity, according to blockchain analytics firm Glassnode. Key metrics show user engagement remains below 2024 levels despite technical improvements.
New and returning wallet activity has declined since the upgrade, though user retention improved by 8.5%. The data suggests holders are accumulating ETH rather than transacting—a trend that could reflect either upgrade anticipation or broader market conditions.
Glassnode’s May 20 report highlights declining transaction volumes among first-time ethereum users. The divergence between improved retention and muted activity creates uncertainty about whether network effects will materialize.
Société Générale’s SG Forge to Launch First Bank-Issued Dollar Stablecoin on Ethereum
SG Forge, the blockchain subsidiary of Société Générale, is set to introduce the first bank-issued dollar stablecoin on the Ethereum network. This landmark move targets European institutional investors seeking regulated access to digital assets and U.S. dollar liquidity.
The stablecoin leverages SG Forge’s e-money license, ensuring compliance across the European Union. With dollar stablecoins now accounting for nearly $250 billion of the global stablecoin market, this initiative underscores the growing convergence of traditional banking and blockchain innovation.
Initially exclusive to Ethereum, the stablecoin represents a direct challenge to crypto-native firms by a major financial institution. The launch signals broader institutional adoption of public blockchains for asset tokenization.
Ethereum Nears Key Resistance Amid Overheated Market Conditions
Ether’s rapid 55% rebound from April lows faces a critical test at the $2,500 psychological barrier as on-chain data signals speculative exhaustion. The second-largest cryptocurrency now trades near $2,540 after shaking off Q1’s 45% decline, but CryptoQuant metrics reveal troubling parallels with previous local tops.
Exchange order books show mounting sell-side liquidity at this level, with short-term holders aggressively taking profits. Such distribution patterns typically precede consolidation phases - a necessary breather after unsustainable vertical rallies. The network’s NVT ratio flashing warning signs confirms capital isn’t flowing into utility but speculative trading.
Market veterans recognize this dance: parabolic moves beget mean-reversion. Whether this manifests as a shallow 10-15% dip or deeper retracement depends on Bitcoin’s stability and institutional ETH accumulation patterns during pullbacks. The $2,200-$2,300 zone emerges as logical support if profit-taking accelerates.
Ethereum Tests Key Support Level Amid Bullish Flag Formation
Ethereum hovers at $2,544, consolidating within a $2,400-$2,750 range as traders eye a potential breakout. The formation of a bull flag pattern on daily charts suggests continuation of prior upward momentum, with technical analysts projecting a near-term target of $3,000-$3,100 should resistance levels break.
Critical support remains firm between $2,200-$2,500, though a breach below this zone could see ETH retest $1,900. Market sentiment remains bullish as the Golden Cross technical indicator reinforces positive price action expectations.
