Ethereum Price Surges 2.16% Ahead of Fusaka Upgrade

Ethereum's latest price was $3709.85, up 2.163% in the last 24 hours. Ethereum’s next significant upgrade, Fusaka, is anticipated to launch in November, with a focus on enhancing performance and security behind the scenes rather than introducing new user-facing features. This upgrade is part of Ethereum’s accelerated release cycle, aiming to maintain the network’s smooth operation as demand grows. Unlike the previous upgrade, Pectra, which introduced features like account abstraction and higher validator limits, Fusaka will not alter smart contract behavior. Instead, it will bundle 11 Ethereum Improvement Proposals (EIPs) that refine core protocol parameters, improve security, and optimize gas efficiency. One of the key proposals, EIP-7825, aims to protect nodes from being overwhelmed by spammy or harmful messages. Another major change involves raising the block gas limit to 150 million, which would allow more transactions to fit into each block but comes with trade-offs like slower block spreading and increased strain on the network’s data storage. Although EIP-7907, which aimed to double the contract code size limit and introduce new gas metering rules, was considered, it was ultimately dropped to avoid testing delays and may be revisited in a future fork. Community voices, including Ethereum protocol support member Nixo, have urged the team to stick to a strict timetable to ensure Fusaka lands before Devconnect, a key developer conference, emphasizing the importance of timely client releases in the next month and a half.

Fusaka will bring several headline features, including a higher gas limit, security boosts, and code size and metering adjustments. The higher gas limit will allow each block to include more transactions, helping to lower fees and speed up the network under heavy demand. Security boosts, such as EIP-7825, will introduce new checks to guard against certain attack patterns, making nodes more robust and reducing the risk of network disruptions. Although EIP-7907, which would double the code size limit and add new gas charges, was pulled to speed up testing, future forks may revisit it. Overall, these changes will not noticeably affect how most smart contracts work but will help the network handle more traffic in a safer and more efficient way. Ethereum follows a roughly six-month upgrade cycle, with the last major fork, Pectra, going live in May, bringing features like account abstraction and higher staking limits. Shortly after Pectra’s release, discussions began about the next step, and Fusaka rose to the top of the list by mid-2025. Behind the scenes, Ethereum’s AllCoreDevs meetings, regular gatherings of protocol teams, debated which EIPs to bundle. On August 1, the final set of EIPs for Fusaka will be confirmed and frozen, giving client teams a month or two to bake in the changes. The upgrade path for Fusaka includes the launch of a devnet in mid-July 2025, two public testnets scheduled for late September and October 2025, and a mainnet hard fork slated for early November 2025, ideally before the Devconnect conference in Buenos Aires. If everything goes smoothly, developers will tally up testnet results in November and roll out the upgrade at a pre-announced block height, ensuring all nodes upgrade together. In the long run, users stay on blockchains that are fast, cheap, and secure. Fusaka isn’t a major overhaul, but it’s a meaningful step to help Ethereum stay competitive with faster chains and layer-2s. By raising capacity and strengthening defenses, it could make the network more welcoming for DeFi apps, games, and other use cases.

Lido Finance, a leading Ethereum staking provider, has experienced a significant decline in market share, dropping to a three-year low of 25-25.25%. This decline is attributed to competitive pressures and ongoing depeg challenges with stETH, Lido’s staked Ethereum token. The persistent depeg issue affects both the protocol and Ethereum stakeholders broadly. The situation stems from significant withdrawal activities by entities like Justin Sun and Ether.fi, leading to a queue of over 235,000 stETH waiting for redemption. Despite these challenges, Lido remains a leading provider with over 9 million ETH staked, valued at approximately $33 billion. It continues to offer a 2.8-3% annual percentage rate on Ethereum staking, maintaining a substantial hold over the market. This decline could have far-reaching implications for the DeFi sector, affecting platforms like Aave and Uniswap where stETH is a critical asset. The ongoing depeg threatens liquidity and positions within these platforms, which may lead to broader market shifts. The broader effects include potential regulatory scrutiny, as highlighted by former concerns from Ethereum’s co-founder, Vitalik Buterin. He stated that if a liquid staking provider controls a very large portion of staked ETH, that does present a risk to the Ethereum consensus and governance in the longer term. Such centralization could pose risks to Ethereum’s governance and consensus stability over time.

A record 640,000 Ethereum validators are currently awaiting exit from staking, representing validators initiating the unstaking process. This figure exceeds January 2024’s previous high of 500,000 exits. Current ETH prices suggest possible profit-taking motivations. Validators must complete this queue to access locked coins. Ethereum’s validator queue system prevents abrupt network changes. Exiting participants wait approximately 6-11 days for processing. This mechanism ensures operational continuity. The queue functions similarly for new validators joining, though entries now number around 350,000 – less than half the exit volume. Historical data shows exit surges often align with ETH price increases. January 2024’s 500,000-exit queue coincided with ETH rising from $2,200 to $3,500. Current prices near all-time highs likely drive similar behavior. Validators seek to realize gains after years of locked staking rewards and asset appreciation. Some validators may migrate to other Ethereum-based platforms or explore restaking options. Others could reassess participation due to changing yield opportunities. Validators perform block validation in Ethereum’s proof-of-stake system, earning rewards for staked ETH instead of mining.

Significant updates emerge from the Ethereum ecosystem, particularly regarding staking dynamics and infrastructure enhancements. Community discussions are actively evaluating the complexities surrounding validator set expansion and the integration of liquid staking protocols, reflecting ongoing efforts to ensure network security and scalability while maintaining decentralization.

Morph, an established Ethereum Layer 2 solution, has announced a strategic partnership with MegaETH, a notable Ethereum-aligned L1 chain known for its re-architected node software. This collaboration aims to explore cross-chain interoperability solutions within the broader Ethereum scaling landscape. Furthermore, the Ethereum ecosystem continues to attract institutional participation, evidenced by significant inflows into newly approved spot Ethereum ETFs based in the US, signaling growing market confidence in its long-term value proposition.

Developments within staking services are accelerating. Kraken, a major cryptocurrency exchange, recently introduced an ETH staking service tailored for users in the United Kingdom and Europe, addressing specific regional market demands. Simultaneously, Coinbase is actively considering the expansion of its ETH staking services beyond the US market, a move that highlights the global demand for secure and reliable staking infrastructure.

The DeFi and user experience aspects of Ethereum also show progress. The Ethereum Foundation released a new version of the ERC-7265 standard, designed to enhance the security of DeFi protocols by mitigating the impact of potential oracle failures and smart contract exploits, potentially increasing protocol resilience. In parallel, widespread integration of EigenLayer, a prominent restaking protocol built on Ethereum, continues. This protocol allows validators to re-stake their staked ETH to secure additional Actively Validated Services (AVS), thereby leveraging Ethereum's underlying security model for a broader range of applications.

MetaMask, the leading self-custodial wallet popular among Ethereum users, is introducing significant feature updates. These include a simplified portfolio dashboard to enhance user experience and novel functionality enabling users to exchange cryptocurrency directly for fiat currency, facilitating easier off-ramps within the wallet interface itself. These updates aim to improve overall accessibility and utility within the Ethereum ecosystem.