ETH Network Activity Jumps 110% After Fusaka Upgrade

• Ethereum's Fusaka upgrade triggered 110% new wallet growth according to reports.
• PeerDAS technology slashes Layer 2 costs by up to 95% as data shows.
• Vitalik Buterin claims Ethereum solved blockchain's trilemma in a recent analysis.
• Institutional ETH holdings exceed 10 million tokens according to institutional analysis.

Ethereum (ETH) network activity has surged dramatically following December's Fusaka upgrade. New wallet creation jumped 110% to nearly 292,000 daily addresses, signaling structural adoption growth beyond short-term speculation. This acceleration comes as Layer 2 networks like Arbitrum and Optimism benefit from drastically reduced operational costs as reported by industry analysts.

How Did the Fusaka Upgrade Transform Ethereum's Scalability?

The December Fusaka upgrade introduced PeerDAS, revolutionizing Ethereum's data handling. This innovation allows nodes to verify data by sampling fragments instead of full downloads, cutting bandwidth needs by 95%. Simultaneously, blob capacity expanded 8x, directly supporting high-throughput Layer 2 rollups.

These changes translate to tangible user benefits. Layer 2 fees are projected to drop 60-95% by early 2026, making Ethereum applications more accessible. The upgrade executed without chain instability, easing institutional concerns about Ethereum's roadmap execution risks. Network fundamentals strengthened as daily transactions hit 1.87 million according to network analytics.

Has Ethereum Solved the Blockchain Trilemma?

Co-founder Vitalik Buterin asserts Ethereum achieved the elusive balance of decentralization, security, and scalability. PeerDAS now operates on mainnet while ZK-EVM reaches production readiness for 2026 deployment. This marks a foundational architectural shift after a decade of development according to protocol analysis.

The protocol combines these technologies to deliver consensus and high bandwidth simultaneously in a detailed technical assessment. A four-year integration roadmap aims to gradually increase gas limits while maintaining cryptographic integrity as outlined in the official roadmap. That said, full ZK-EVM implementation as the primary verification method extends through 2030 according to development timelines.

What Does This Mean for Institutional Adoption?

Institutional ETH holdings crossed 10 million tokens, with BlackRock and Franklin Templeton launching on-chain products. Corporate treasuries and ETFs collectively hold significant positions as institutional investors report. Staking queues swelled to 890,000 ETH by late 2025, offering 3-4% yields in a low-rate environment according to market data.

Network improvements drive this institutional embrace. Reduced Layer 2 friction typically boosts onboarding across DeFi and gaming applications. EIP-7918 established predictable blob fee economics, enhancing Ethereum's value accrual model. Still, fee revenue remains 88% below previous highs despite activity growth.