Ethereum's Scalability Leap: How the 60M Gas Limit and Fusaka Upgrade Position ETH for Long-Term Value Capture

Ethereum's upcoming Fusaka Upgrade, set to activate on December 3, 2025, represents a pivotal moment in the blockchain's evolution. By addressing scalability bottlenecks and redefining fee economics, the upgrade positions Ethereum to compete more effectively with high-throughput rivals like Solana while solidifying its role as a foundational infrastructure for decentralized finance (DeFi), non-fungible tokens (NFTs), and enterprise applications. This analysis explores how the 60 million gas limit increase and the suite of Ethereum Improvement Proposals (EIPs) in Fusaka will drive network capacity, reduce costs, and enhance value capture for ETH holders.

Technical Foundations: From 45M to 60M Gas Limit

Ethereum's gas limit-the maximum amount of computational work per block-has been a critical constraint on throughput. Prior to Fusaka, the limit stood at 45 million gas units, capping Layer 1 (L1) transactions at roughly 15–30 transactions per second (TPS). The Fusaka Upgrade, however, raises this to 60 million gas units via EIP-7935, effectively increasing L1 capacity by 33%. This adjustment, combined with EIP-7825's 16.77 million gas cap per transaction, ensures blocks remain manageable while preventing denial-of-service (DoS) attacks.

Beyond L1, the upgrade introduces PeerDAS (Peer Data Availability Sampling) via EIP-7594, a breakthrough that allows nodes to verify data availability by sampling small portions of blob data rather than downloading entire blocks. This innovation reduces bandwidth and storage requirements for nodes, enabling Layer 2 (L2) rollups like Arbitrum and zkSync to scale blob throughput by up to 8× according to research. Additionally, Blob Parameter Only (BPO) hardforks (EIP-7892) allow incremental scaling of blob capacity without disruptive hard forks. For instance, BPO1 will raise the per-block blob target from 6 to 10, while BPO2 will push it to 14, ensuring flexibility in adapting to demand as reported by Yahoo Finance.

Scalability vs. Competitors: TPS and Fee Dynamics

Post-Fusaka, Ethereum's combined L1 and L2 throughput is projected to reach 24,192 TPS, a stark contrast to its pre-upgrade L1-only capacity of under 30 TPS. This leap is driven by L2 rollups leveraging PeerDAS to process tens of thousands of transactions per second, rivaling Solana's 3,700 TPS. While Solana's Proof-of-History (PoH) consensus model offers native high throughput, Ethereum's modular architecture-prioritizing L2 scalability-ensures it can maintain decentralization and security without compromising performance.

Bitcoin, by comparison, processes just 1–7 TPS, underscoring its role as a store of value rather than a transactional layer according to analysis. Ethereum's focus on monetizing data availability through mechanisms like blob-fee floors (EIP-7918) further differentiates it. By setting a minimum price for blob data during low-demand periods, Ethereum prevents underpricing and ensures sustainable revenue for validators as reported by CryptoNinjas. Analysts estimate this could increase Ethereum's fee revenue by 5–10×, positioning it as a cash-flowing asset according to Yahoo Finance.

Economic Implications: Value Capture and Institutional Adoption

The Fusaka Upgrade's economic impact extends beyond technical metrics. By expanding block space and optimizing fee markets, Ethereum enhances its ability to capture value from growing demand. For example, Fidelity Digital Assets calculates that if the blob-fee floor had been active since the Dencun upgrade, Ethereum would have generated an additional $78.6 million in cumulative blob-fee revenue according to Times of Blockchain. This monetization strategy aligns with broader trends in the crypto space, where protocols like Uniswap and XRP are prioritizing economically sustainable designs as noted by Bitget.

Institutional adoption further reinforces Ethereum's investment thesis. Ethereum ETFs have seen record inflows, with assets under management reaching $28.6 billion by Q3 2025 according to Yahoo Finance. This surge reflects confidence in Ethereum's technical roadmap and its ability to serve as a settlement layer for high-volume applications. As Layer 2 adoption grows, Ethereum's role as a base layer for DeFi and enterprise use cases becomes increasingly irreplaceable, driving long-term demand for ETH.

Investment Outlook: Strategic Advantages and Risks

The Fusaka Upgrade positions Ethereum to outpace competitors in both scalability and economic sustainability. While Solana's native throughput remains higher, Ethereum's modular approach-leveraging L2s for scalability-ensures it can maintain decentralization and security. Meanwhile, Bitcoin's limited throughput and lack of programmability make it less competitive for applications requiring high transaction volumes.

However, risks persist. Regulatory developments in the U.S. and global macroeconomic trends could impact Ethereum's price trajectory. Additionally, aggressive monetization strategies might lead to centralization if data availability becomes too costly for smaller nodes. Investors must weigh these factors against Ethereum's structural advantages, including its first-mover status in DeFi and its growing institutional backing.

Conclusion

Ethereum's Fusaka Upgrade marks a strategic realignment of its development roadmap, prioritizing scalability, usability, and value accrual for ETH holders. By increasing the gas limit to 60 million units, introducing PeerDAS, and optimizing fee markets, Ethereum strengthens its position as a scalable, secure, and economically sustainable blockchain. For investors, the upgrade represents a catalyst for long-term value capture, particularly as Layer 2 adoption accelerates and institutional demand grows. While challenges remain, Ethereum's ability to balance innovation with decentralization ensures it remains a cornerstone of the crypto ecosystem.