Ethereum Fusaka Upgrade Boosts Scalability, Slashes Layer-2 Fees

Generated by AI AgentCoinSageReviewed byAInvest News Editorial Team
Thursday, Jan 8, 2026 5:44 am ET2min read
Aime RobotAime Summary

- Ethereum's Fusaka upgrade (Dec 2025) introduces PeerDAS and BPO forks to enhance data availability and scalability.

- Layer-2 fees dropped 40-90%, enabling near-zero-cost transactions while new address creation surged 110% post-upgrade.

- BPO-1/BPO-2 forks increased blob capacity to 14-21 per block, expanding rollup space without user action.

- Institutional adoption accelerated as

transitions to foundational infrastructure with 43% circulating ETH now institutionally held.

The Fusaka upgrade introduces PeerDAS and BPO forks to enhance Ethereum's data availability and scalability

. Layer-2 transaction fees have dropped 40-90% since the upgrade, enabling near-zero-cost transactions . New address creation surged 110% post-upgrade, indicating structural adoption growth . Institutional adoption accelerates as Ethereum transitions toward becoming foundational infrastructure .

Ethereum's Fusaka upgrade completed in December 2025 represents a pivotal advancement in the network's scalability roadmap

. The upgrade delivers major technical improvements through PeerDAS and BPO mechanisms . These innovations significantly reduce data costs for Layer-2 solutions and end-users alike . 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

. 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% . Simultaneously, Blob Parameter Only forks enable flexible scaling by adjusting blob capacity per block .

Implementation occurred through sequential BPO-1 and BPO-2 forks

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

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

Layer-2 transaction costs have plunged 40-90% since Fusaka's deployment

. Average fees on networks like Base now hover around $0.000116 versus Ethereum mainnet's $0.3139 . Higher blob capacity combined with PeerDAS efficiency enables up to 100,000+ transactions per second across Layer-2 ecosystems . Near-zero fees now support affordable DeFi, NFT minting, and gaming applications .

User adoption metrics show remarkable growth following the upgrade

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

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

Ethereum now captures more value through efficient data availability fees

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

Institutional adoption deepens alongside Ethereum's scaling achievements

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