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At a time when expectations for an interest rate cut by the Federal Reserve are rising and cryptocurrency market volatility is intensifying, the blockchain field has received important news that may change the industry landscape: Ethereum will launch the Fusaka upgrade on December 3, 2025. , this is not only the biggest technical change of the network since the merger, but also regarded as a key step for Ethereum to move towards a "global settlement layer". By introducing innovative technologies such as the PeerDAS data availability sampling mechanism, increasing the block gas limit to 150 million units, and optimizing smart contract execution efficiency, Fusaka is expected to solve the long-term scalability bottleneck faced by Ethereum, provide a more powerful expansion window for Layer-2 applications, while reducing node operating costs and promoting network decentralization. This technological breakthrough may not only push the price of ETH above the $4,000 mark, but will also reshape Ethereum's competitive position in the cryptocurrency ecosystem, allowing it to regain an advantage in the competition with high-performance networks such as Solana. 1 Technological innovation: from "data download" to "data sampling"" The core innovation of the Fusaka upgrade is the introduction of the PeerDAS (Peer Data Availability Sampling) mechanism, which is a key step for Ethereum to solve the data availability problem. Traditionally, Ethereum nodes need to download and store the complete data of each block, which brings increasing storage and bandwidth burdens as the network scales. PeerDAS adopts a more intelligent verification method: nodes only need to randomly obtain and verify a part of the data fragments in the block to confirm the data availability of the entire block. This mechanism is similar to a "spot check" rather than a "full check", which greatly reduces the operating costs of nodes. Specifically, Fusaka will achieve this goal through the following technical improvements: First, the number of blobs that each block can carry will be expanded from about 6 to more than 48, increasing the data throughput from 64KB/second to 512KB/second, which is equivalent to an 8-fold increase. This directly solves the data availability bottleneck problem that plagues Layer-2 applications, allowing more transaction data to be efficiently submitted to the Layer-1 network for verification. Secondly, the block gas limit will increase from 45 million units to 150 million units, significantly improving network throughput. According to test data, this adjustment will increase Ethereum’s daily active address count by 20% to 30% within six months while reducing network congestion during peak demand. More importantly, Fusaka introduced the "Blob Parameter Only" (BPO) fork mechanism, allowing blob parameters to be dynamically adjusted without a full hard fork. This mechanism has been advanced to December 9, 2025, and will enable the network to flexibly adjust parameters based on actual load conditions, laying the foundation for further expansion in the future. Third, Fusaka also introduces innovative technologies such as Verkle tree and EVM Object Format (EOF). Verkle trees will replace the current Merkle-Patricia tree structure and can reduce node computing load by up to 50% ； EOF optimizes the execution efficiency of smart contracts, allowing developers to write and deploy contracts more efficiently. Together, these technical improvements form an important cornerstone for Ethereum's evolution toward high performance and low fees. 2 Institutional bets: BlackRock’s holdings exceed $800 million Driven by expectations of technological upgrades, institutional investors are increasing their investment in Ethereum. As of October 2025, BlackRock's Ethereum ETF holdings have exceeded US$800 million, an increase of 262% from the beginning of the year. This position size reflects the institution’s confidence in the future development of Ethereum. Although BlackRock transferred 93,158 ETH (approximately $368 million) to Coinbase Prime on October 14, this was regarded as a normal position adjustment by institutions amid market fluctuations, rather than a bearish signal. BlackRock’s investment strategy for Ethereum is very clear: use it as the cornerstone of a crypto asset portfolio. On October 6, 2025, BlackRock accounted for 88% of Ethereum ETF inflows, showing its courage to buck the trend and increase its holdings during times of market panic. This "dip hunting" behavior is in sharp contrast to the current Ethereum price - ETH was trading at $3,764 on October 23, down more than 50% from its historical high, but institutional investors seem to have set their sights on the opportunities brought by the longer-term Fusaka upgrade. At the same time, other institutions such as Fidelity and Grayscale are also simultaneously increasing their holdings of Ethereum. The collective actions of these institutions indicate that despite the short-term market sentiment being depressed, the Fusaka upgrade is seen as an important catalyst for Ethereum’s long-term value. As analysts said: "Fusaka will change the expansion narrative of Ethereum and enable institutions to invest more funds into the Ethereum ecosystem. " 3 Testnet progress and community participation: 99% participation rate The success of the Fusaka upgrade largely depends on the verification during the testnet phase. On the Holesky testnet, the participation rate for the Fusaka upgrade is as high as 99%, and all client teams (including Geth, Nethermind, Reth, Besu, and Erigon) have confirmed the feasibility of the upgrade schedule. This data is much higher than the testnet participation rate of previous Ethereum upgrades, indicating that the developer community attaches great importance to the Fusaka upgrade. The successful exercise of the testnet laid a solid foundation for the mainnet implementation of Fusaka’s upgrade. On the Hoodi test network, developers have verified the stability of the PeerDAS mechanism. Even as the amount of data continues to grow, the bandwidth of the verification node remains within control. This creates room for layer-2 rollup, a growing user base, and increasingly complex decentralized applications. It is worth noting that the Ethereum development team has shifted the development focus of the Fusaka upgrade from functional expansion to stability testing. At the 223rd Ethereum Execution Core Developers Conference (ACDE), developers emphasized the importance of "keeping Fusaka lean" and rejected any feature additions that might delay the upgrade. This pragmatic attitude shows that the development team is committed to ensuring the smooth implementation of the Fusaka upgrade rather than pursuing a comprehensive breakthrough in functionality. 4 Market Impact and Investment Value From a technical perspective, Ethereum currently faces severe challenges. In an analysis on October 17, ETH price was noted to have formed a "double top" pattern, suggesting a potential 42% downside risk. At that time, ETH was quoted at $2,219, trading volume shrank to $20.3 billion, and market sentiment was clearly depressed. However, with the clarification of Fusaka’s upgrade schedule and the success of the testnet, market sentiment is gradually changing. Analysts predict that after Fusaka’s upgrade, ETH price is expected to break through the $4,000 resistance level and even hit $4,200 in the short term. This optimistic expectation is mainly based on the following points: First, the Fusaka upgrade will significantly reduce Layer-2 transaction costs. According to reports, this upgrade is expected to reduce L2 transaction fees by up to 30%, which will attract more users and developers to use the Ethereum ecosystem and increase network activity and transaction volume. Secondly, the upgraded Ethereum will be more suitable for institutional investors. Reduced node costs enable more institutions to participate in network validation, while increased throughput meets institutions’ needs for high-performance blockchains. Ethereum’s institutional narrative is strengthening as large institutions such as BlackRock continue to accumulate holdings. Third, the Fusaka upgrade will enhance ETH’s deflationary narrative. Higher Layer-2 usage increases demand for the base layer, driving up gas fees and ETH consumption rates. This reinforces ETH’s scarcity as a network fuel and staking asset, providing long-term support for price. 5 Roadmap for the Future: From Fusaka to Glam Photography The Fusaka upgrade is not the end of Ethereum’s expansion journey, but an important step towards a more efficient network. According to the Ethereum roadmap, the Glam Stestan upgrade will be launched in 2026 to further optimize scalability, improve user experience, and enhance validator efficiency based on the large-scale data improvements introduced by Fusaka. Glam’s key priorities include: - Further optimize danksharding technology to improve data availability verification efficiency - Improve MEV (Maximum Extractable Value) fairness under the "Scourge Phase" to reduce the possibility of validators manipulating transactions - Simplify node operations and lower the threshold for participation under "The Verge" and "The Purge" initiatives These upgrades will continue to reduce Layer-2 network costs, simplify wallet interactions, and make Ethereum better suited for long-term growth. In the long term, Ethereum's upgrade steps show that it is making steady progress towards positioning as a "settlement layer" with the goal of becoming one of the infrastructures of the global financial system. |
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