Ethereum’s activity following the Pectra upgrade is a fascinating example of diverging trends. While Layer 2 networks experience explosive growth, mainnet engagement lags, and investor capital reflects this mix of uncertainty. Despite sluggish on-chain activity, Ethereum’s realized cap jumped by $3.8 billion post-upgrade, signaling increased accumulation, and exchange reserves have reached a 10-year low. However, new user growth remains stagnant, raising questions about sustained network expansion. On the other hand, Layer 2 networks are thriving, with active addresses surging 50% to reach 13 million users on platforms like Base and Arbitrum. This shift highlights user preference for cheaper transactions and improved scalability, even as the mainnet grapples with slower adoption.