Ethereum has activated its Pectra upgrade, a long-anticipated network change that is already being reflected in on-chain activity. Early data cited by The Block shows a sharp rise in Layer 2 transactions following the rollout, suggesting users and developers are quickly testing the upgraded network.

The launch also coincided with a notable drop in Ethereum gas fees. Average fees fell below 1 gwei for the first time since 2024, easing the cost of sending transactions on the base layer. Lower fees can make the network more accessible for routine transfers and help improve the experience for users who have been priced out during periods of heavy demand.

Pectra is part of Ethereum’s broader effort to improve scalability and usability as competition among blockchain platforms intensifies. While the long-term impact will depend on sustained adoption, the early reaction points to stronger activity across Layer 2 networks, which are designed to reduce congestion on Ethereum’s main chain.

Market watchers will now be looking at whether the upgrade delivers lasting gains in efficiency and user growth. For Ethereum, the first signals from Pectra suggest the network is moving toward cheaper transactions and higher throughput, two metrics that remain central to its appeal.

Pectra upgrade

Ethereum’s Pectra upgrade goes live as L2 activity hits a record