Ethereum Unveils Fusaka Upgrade: Major Improvements in Scalability and Efficiency
Ethereum has rolled out its second major network upgrade of the year, named “Fusaka,” bringing significantly higher data capacity, reduced transaction costs, and improved usability for users and developers alike. The upgrade began deploying on the Ethereum mainnet at 9:49 PM UTC on Wednesday, with PeerDAS data availability sampling as a key feature to enhance network scalability and Layer 2 performance.
Faster Transactions and Lower Fees for Users
According to the Ethereum Foundation, Fusaka moves the network closer to near-instant transactions, cutting confirmation times from minutes to milliseconds using pre-confirmation mechanisms. Reduced transaction fees also provide a smoother user experience, making Ethereum more accessible for everyday transactions.
The upgrade directly benefits node operators, Layer 2 networks, pools, and businesses, enabling more efficient data handling and faster interaction with the main network. PeerDAS technology splits aggregation data into smaller chunks, reducing the amount of data nodes need to process. This improvement translates into lower fees, enhanced scalability, and wider deployment possibilities, all while maintaining the network’s decentralization.
Layer 2 Networks Gain Eightfold Data Throughput
For Layer 2 solutions and aggregation processes, PeerDAS enables up to an eightfold increase in data throughput, allowing for faster and more efficient processing of network information. By reducing the load on individual nodes, Ethereum can handle greater transaction volumes without compromising performance, ensuring a seamless experience for developers and end-users alike.
Analysts are optimistic that Fusaka could boost Ethereum’s market performance, following the precedent set by the previous Pectra upgrade. MerlijnTrader, via the X platform, highlighted that Pectra drove a 58% price increase, and Fusaka’s improvements may have an even broader impact, as current prices have not yet fully reflected the network’s enhanced fundamentals.
Since December 1, Ethereum has risen more than 13%, supported by broader market momentum and anticipation for Fusaka. Technical indicators now show striking similarities to those seen before Pectra in May 2023, when ETH surged 56% in just seven days.
Technical Patterns Indicate a Potential Bullish Trend
During Pectra (May 6–13, 2023), Ethereum exhibited a bullish divergence, with price making a lower low while the Relative Strength Index (RSI) formed a higher low, a signal that selling pressure was waning. Between November 4 and December 1, a similar pattern emerged, suggesting that Ethereum could experience a comparable trend reversal and price rally following Fusaka.
Institutional Accumulation Signals Confidence
Large investors are showing clear signs of early accumulation. Ethereum addresses holding at least $1 million increased from 13,322 to 13,945, representing an injection of at least $623 million into the portfolios of major holders. Historically, this type of capital influx prior to a major network upgrade signals strong market confidence and optimism about future growth.
Ethereum’s Fusaka upgrade not only enhances network performance and usability but also strengthens market sentiment, paving the way for greater adoption and potential price appreciation as both retail and institutional investors respond to the improved fundamentals
