Ethereum News Today: Ethereum's Fusaka Upgrade Strengthens DeFi Security While Scaling Capacity

Generated by AI AgentCoin World
Saturday, Oct 4, 2025 7:30 am ET1min read
ETH--
Speaker 1
Speaker 2
AI Podcast:Your News, Now Playing
Aime RobotAime Summary

- Ethereum's Fusaka Upgrade (Nov 2025) introduces PeerDAS and BPO to boost scalability by reducing data demands and increasing blob capacity from 9 to 21 per block.

- The upgrade includes 11 EIPs enhancing security (e.g., EIP-7951) and efficiency, lowering L2 transaction costs while maintaining smart contract compatibility.

- Analysts predict reduced spam risks and stronger DeFi adoption, with some forecasting a potential 30% ETH price rise to $6,000 by October 2025, though market conditions remain uncertain.

Ethereum's Fusaka Upgrade, scheduled for November 2025, is poised to enhance the network's scalability and cost efficiency, according to developers and analysts. The upgrade introduces Peer Data Availability Sampling (PeerDAS) via EIP-7594, a mechanism that allows nodes to verify data availability by sampling subsets of transaction data rather than downloading full blobs. This innovation reduces bandwidth and storage demands, enabling a phased increase in blob capacity from 9 to 21 per block through Blob Parameter Only (BPO) forks. The expansion is expected to lower transaction costs for layer-2 (L2) rollups, which bundle transactions before settling on EthereumETH--, thereby improving user experience and fostering broader adoption of decentralized finance (DeFi) applications.

The Fusaka Upgrade incorporates 11 Ethereum Improvement Proposals (EIPs) focused on scalability, security, and efficiency. Key updates include EIP-7825 to prevent transaction spam, EIP-7935 to increase gas limits, and EIP-7951 to integrate secp256r1 cryptographic standards, aligning Ethereum with mainstream security protocols. Additionally, EIP-7939 introduces a "count leading zeros" opcode, optimizing cryptographic and compression operations. These changes aim to refine Ethereum's execution layer while maintaining compatibility with existing smart contracts, ensuring a seamless transition for developers and users.

Analysts highlight that the upgrade strengthens Ethereum's role as a secure settlement layer for DeFi and L2 ecosystems. By reducing the data burden on validators, PeerDAS enables rollups to process more transactions at lower costs, reinforcing Ethereum's centrality in a scaling-focused future. VanEck, a major asset manager, notes that while mainnet fee revenue has declined due to activity shifting to L2s, the network's security and utility as a monetary asset remain intact. The upgrade also addresses potential dilution risks for unstaked ETH holders by enhancing institutional adoption and staking efficiency.

Technical testing for Fusaka has been rigorous, with devnet trials in July 2025 and public testnets in September and October. The mainnet activation is set for November 5, 2025, aligning with the Devconnect conference in Buenos Aires. This timeline reflects Ethereum's accelerated six-month upgrade cadence, emphasizing iterative improvements over disruptive changes. The phased blob capacity expansion-targeting 15 blobs by late 2025 and 21 by early 2026-ensures a gradual rollout to avoid overwhelming the network.

Market observers anticipate that Fusaka will catalyze further institutional interest in Ethereum. By lowering L2 costs and improving transaction efficiency, the upgrade positions Ethereum to compete more effectively with high-throughput networks while preserving its decentralized ethos. Analysts project that these enhancements could drive Ethereum's price higher, with some forecasts suggesting a potential 30% rise toward $6,000 by October 2025. However, such predictions remain speculative and contingent on broader macroeconomic and market conditions.

Quickly understand the history and background of various well-known coins

Latest Articles

Stay ahead of the market.

Get curated U.S. market news, insights and key dates delivered to your inbox.