Ethereum's Gas Limit Hike and Fusaka Upgrade: A Catalyst for Institutional Adoption and ETH Price Rebound

The Ethereum network is on the cusp of a transformative phase with the Fusaka upgrade, a multi-stage hard fork set to activate on December 3, 2025, followed by Blob Parameter Only (BPO) forks in late 2025 and early 2026. This upgrade represents a pivotal step in Ethereum's evolution, addressing long-standing scalability challenges while recalibrating its economic model to attract institutional capital. By raising the gas limit, optimizing Layer 2 (L2) throughput, and introducing novel fee mechanisms, the Fusaka upgrade is poised to catalyze a structural shift in Ethereum's valuation dynamics.

Technical Upgrades: Scaling for the Future

The cornerstone of the Fusaka upgrade is its focus on scalability. The gas limit per block has been increased from 45 million to 60 million via EIP-7935, enabling more transactions to be processed per block and alleviating congestion during high-demand periods according to Cointribune. This adjustment alone is expected to boost Ethereum's base-layer throughput, but the true innovation lies in the upgrades targeting L2 rollups.

PeerDAS (EIP-7594) introduces a peer-to-peer data sampling mechanism, allowing nodes to verify L2 data availability without downloading entire blob datasets. This reduces bandwidth and storage requirements by up to 90% while maintaining security, effectively multiplying the network's capacity to handle L2 transactions according to Metrika. Complementing this, BPO forks (EIP-7892) dynamically adjust blob capacity per block. The first BPO fork on December 9, 2025, increases the target from 6 to 10 blobs per block, with a second fork on January 7, 2026, raising it to 14 blobs. These changes are projected to reduce L2 data fees by 40–60%, particularly benefiting high-volume sectors like decentralized finance (DeFi) and blockchain gaming.

A futuristic cityscape built on top of the Ethereum blockchain, with digital data streams flowing through the streets, blockchain nodes glowing like city lights, and a transparent graph showing the network's throughput increasing over time.