New Test Environment Clears Major Hurdle Ahead of Network Upgrade
Developers activated the latest upgrade, called Pectra, on a fresh test environment named Hoodi this week, pushing it one step closer to a full rollout across the main network.
After previous attempts on other testing networks ran into issues, Hoodi finalized the upgrade in just 30 minutes, offering a much smoother process. It’s now positioned to fully replace Holesky, which is set to be phased out later this year.
This test is designed to give developers and staking teams a clear window to examine upcoming protocol changes, including enhanced wallet capabilities, bigger validator limits, and improved data efficiency for rollups.
If all goes well, the main upgrade could go live within a month, but core contributors may still take additional time to let participants get fully up to speed.
Network Activity Sees a Cooldown
Activity across the network is also slowing, with the number of tokens removed from circulation dropping to the lowest level since the burn system launched back in 2021.
Over the weekend, only around $100K worth of assets were burned in a day, a stark contrast from peak periods. Transaction fees have followed the same path, now averaging less than 50 cents.
This trend comes alongside falling engagement numbers, fewer new users, lower trading volumes, and quieter transaction flow. At the same time, rival chains and layer 2 platforms are offering cheaper and faster experiences, drawing attention away.
Meanwhile, some analysts are dialing back their expectations. A recent report from a major bank revised its 2025 forecast downward, pointing to rising adoption of alternative scaling solutions within the broader ecosystem.
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