Ethereum continues to refine its technology. With the upcoming Pectra and Fusaka upgrades, the network is preparing for a more scalable and user-friendly future. However, despite technical momentum, investor confidence remains stagnant. The upgrades are beneficial, but they’re not delivering what ETH holders want most—clear value accrual.
Pectra Brings Efficiency but No Boost in Revenue
Pectra is Ethereum’s next major upgrade. It focuses on increasing data availability by expanding the number of blobs that can be posted on-chain. This move is expected to lower costs significantly for layer-2 networks like Arbitrum and Optimism, which rely on Ethereum’s base layer for security.
Lower fees on rollups improve the user experience. However, they also mean fewer fees go directly to Ethereum. Instead of enhancing ETH’s value, Pectra’s success may reduce revenue at the base layer. Investors are watching Ethereum help others thrive while its native token stays under pressure.
Fusaka Strengthens Security Without Adding Value to ETH
Fusaka will follow Pectra and includes changes to Ethereum’s validator structure. Right now, validators are limited to 32 ETH, but Fusaka will raise that cap to 2,048 ETH. This helps streamline staking and reduce the complexity of validator operations. In theory, this makes Ethereum more secure and efficient.
It also includes wallet improvements to enhance usability. Yet again, these are structural improvements. They make the network better but don’t directly offer any yield or price action for ETH holders. Security is important, but it’s not enough to drive excitement among investors.
User Growth Doesn’t Equal Investor Gains
Ethereum has seen its user base grow, especially across layer-2s. Networks like Base and zkSync have expanded rapidly. Much of this success comes from Ethereum’s consistent infrastructure upgrades. More people are using Ethereum, but that usage is not leading to a rise in ETH’s market performance.
This is largely because activity is moving away from Ethereum’s base layer. As rollups thrive, Ethereum becomes more of a back-end system. Investors are left wondering if ETH is becoming a utility token that powers infrastructure, rather than an asset that captures value.
Competing Chains Offer More Attractive Propositions
Ethereum’s dominance is being challenged. Solana offers low fees and high throughput on a single layer. BNB Chain continues to attract users with lower costs and strong ecosystem support. These chains may not have Ethereum’s decentralization or security, but they provide clearer paths to user adoption and potential token gains.
Some investors are beginning to shift their attention. They’re looking for chains that combine growth with value capture. Ethereum’s strength lies in its technology, but its inability to directly reward holders remains a problem.
Technical Progress Isn’t Market Performance
Ethereum is progressing from a technical perspective. Every upgrade pushes the network closer to long-term sustainability. However, markets care about value. They reward tokens that benefit from growth, not just those that enable it.
As long as Ethereum continues to offload value capture to layer-2s, it risks becoming a neutral settlement layer. This may be good for the ecosystem, but not for ETH’s price. Until Ethereum finds a way to channel some of that value back into the token, investor sentiment will remain cautious.
The Path Forward: Can Ethereum Bridge the Gap?
There’s still hope. Ethereum’s developers are aware of the concerns. Some have proposed mechanisms that might redirect value to ETH holders, such as protocol fees or MEV capture reforms. Others suggest that ETH could benefit more as staking adoption grows and the network’s role becomes more essential.
Still, none of these ideas are guaranteed. Investors need more than long-term potential. They want results now, especially in a competitive market where alternatives are becoming increasingly attractive.
Conclusion
Ethereum’s upgrades are a step in the right direction—technically. Pectra and Fusaka will improve performance, efficiency, and usability. But they don’t solve the biggest problem facing ETH investors: weak value capture. As competitors rise and rollups gain momentum, Ethereum risks falling behind in the eyes of the market. Without changes that directly benefit token holders, upgrades alone won’t be enough to restore investor confidence.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.
