Ethereum Retires Holesky and Shifts to Hoodi Testnet 

• Ethereum transitions to Hoodi after Holesky’s failure disrupts huge operations.
• Ethereum’s market performance has been sluggish since mid-2024 amid upgrade delays.
• The Pectra upgrade could restore Ethereum’s confidence if the tests actually succeed.

Ethereum is set to retire its Holesky testnet by September, redirecting its resources to the newly launched Hoodi testnet. This shift comes after the recent failure of Holesky, which was caused by an incomplete test of Ethereum’s upcoming Pectra upgrade, according to analyst 10x research on X (formerly Twitter). The failure left the network offline and caused significant damage. Despite being brought online again in March, Holesky continued to experience issues due to “inactivity leaks,” which disrupted its validator operations. Ethereum had considered entirely removing the affected validators, a process that would have taken up to one year.   As a result, Ethereum’s focus has now transitioned to the Hoodi testnet, which is expected to address these concerns and streamline the testing of the Pectra upgrade. 

Hoodi launched earlier this week and will test the Pectra upgrade on March 26. If successful, Ethereum’s Pectra upgrade could be deployed to the mainnet by April 26, marking a milestone for the blockchain. 

Holesky’s Shortcomings and the Shift to Hoodi

Holesky, first designed for Ethereum’s validator ecosystem to ensure network security by involving stakers and node operators, faced multiple setbacks in recent months. Ethereum’s testnets are vital environments where developers can test upgrades before they go live on the mainnet. Unfortunately, Holesky’s performance did not meet the necessary standards, especially after the Pectra upgrade’s test was flawed, which left the testnet vulnerable. 

Ethereum’s decision to remove the Holesky testnet aligns with the need for more robust testing conditions. This shift allows Ethereum to focus on the newly introduced Hoodi testnet, which is more aligned with the current demands of Ethereum’s network operations.

Hoodi’s role is crucial because it provides a more reliable testing environment and will likely prevent issues similar to those seen with Holesky. This transition also means that Ethereum can now focus on testing features that will affect Ethereum’s mainnet and ensure that any changes are thoroughly vetted before going live. 

Related: Strategic Ethereum Moves by Whale Signal Strong Market Shifts

Ethereum’s Market Trends and Analysis

The impact of Ethereum’s testnet developments on its market performance can be looked at through recent price trends. Ethereum has shown a clear downward trajectory since late 2024, with its value declining from over $3,600 in June 2024 to below $2,200 in March 2025. The 30-day moving average (blue line) has followed a similar path, reflecting the overall downtrend. Additionally, Ethereum’s performance relative to Bitcoin (purple line) has also been weaker, as the chart shows a noticeable decline in ETH’s value when compared to Bitcoin’s market dominance.

The data, extracted from a lot of different market indicators, show that Ethereum is not doing better relative to Bitcoin over the last few months. To highlight, the price of Ethereum was reduced to 50% of its peak price against Bitcoin in early 2025. This fall is representative of the attitude of investors in general and the wider market in worrying about delays in Ethereum’s upgrades and problems with its testnet performance. Nonetheless, the market worth for Ethereum is still intrinsic above $2000, which indicates a possibility for future recovery with successful applications of the Pectra upgrade and the Hoodi testnet in solving these flaws.

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