Ethereum Fusaka Upgrade Boosts Scalability, Slashes Layer-2 Fees

The Fusaka upgrade introduces PeerDAS and BPO forks to enhance Ethereum's data availability and scalability according to analysis. Layer-2 transaction fees have dropped 40-90% since the upgrade, enabling near-zero-cost transactions as reported. New Ethereum address creation surged 110% post-upgrade, indicating structural adoption growth according to data. Institutional adoption accelerates as Ethereum transitions toward becoming foundational infrastructure according to reports.

Ethereum's Fusaka upgrade completed in December 2025 represents a pivotal advancement in the network's scalability roadmap according to analysis. The upgrade delivers major technical improvements through PeerDAS and BPO mechanisms according to reports. These innovations significantly reduce data costs for Layer-2 solutions and end-users alike as noted. Market participants now observe substantially lower fees and accelerated network growth.

What Technical Improvements Does the Fusaka Upgrade Introduce?

The Fusaka upgrade activated on December 3, 2025 introduces two core innovations according to reports. PeerDAS (Peer Data Availability Sampling) allows nodes to verify data availability through sampling instead of full downloads . This approach slashes node bandwidth and storage requirements by approximately 80% according to analysis. Simultaneously, Blob Parameter Only forks enable flexible scaling by adjusting blob capacity per block according to reports.

Implementation occurred through sequential BPO-1 and BPO-2 forks according to analysis. The first fork increased target blobs per block from 6 to 10 and maximum from 9 to 15 as reported. BPO-2 then raised targets to 14 blobs with a 21-blob ceiling according to data. This backward-compatible enhancement expands data space for rollups without requiring user action as noted. The upgrade builds on Ethereum's rollup-centric roadmap for sustainable scaling according to reports.

How Does Fusaka Impact Layer-2 Fees and Network Adoption?

Layer-2 transaction costs have plunged 40-90% since Fusaka's deployment according to analysis. Average fees on networks like Base now hover around $0.000116 versus Ethereum mainnet's $0.3139 according to data. Higher blob capacity combined with PeerDAS efficiency enables up to 100,000+ transactions per second across Layer-2 ecosystems as reported. Near-zero fees now support affordable DeFi, NFT minting, and gaming applications according to analysis.

User adoption metrics show remarkable growth following the upgrade according to data. Daily new address creation jumped 110% to approximately 292,000 addresses as reported. This marks Ethereum's fastest expansion rate since the 2024 bull market according to data. Total value locked in Arbitrum reached $3.2 billion as institutional crypto integration intensified according to reports. The activity surge indicates structural adoption rather than speculative interest according to data.

What Are the Market Implications of Ethereum's Scalability Gains?

Ethereum now captures more value through efficient data availability fees according to analysis. The upgrade ties blob base fees to L1 gas demand, stabilizing validator rewards as reported. Analysts project potential ETH price targets of $7,000-$12,000 by 2026 according to reports. Deflationary pressures strengthen as Layer-2 activity contributes to Ethereum's value accrual according to analysis. These technical advances position Ethereum as cash-flowing global infrastructure according to reports.

Institutional adoption deepens alongside Ethereum's scaling achievements according to reports. Approximately 43% of circulating ETH supply is now institutionally held according to data. Major wirehouses increasingly integrate crypto services into traditional platforms according to reports. The network's 99.95% energy reduction since transitioning to proof-of-stake enhances its appeal according to analysis. Ethereum now processes 1.2 million daily transactions with Layer-2s handling most volume according to reports.