Fusaka Upgrade Boosts Ethereum's Scalability But Fails to Drive Massive Revenue Growth

The Fusaka upgrade in December 2025 aimed to improve Ethereum’s scalability by increasing network data capacity and introducing transaction batch workflows, significantly enhancing the user experience.

Despite implementing a fee floor for blob data, the increased network capacity offset potential fee gains, resulting in minimal revenue impact on the Ethereum network.

The upgrade has supported Ethereum’s ecosystem growth, with Ethereum reaching 16.4 million weekly transactions, increased DEX volume, and improved Layer 2 solutions that stabilize costs and enhance efficiency according to market data.

The Ethereum network implemented the Fusaka upgrade in December 2025 as part of its ongoing scaling strategy. This upgrade bundled 13 EIPs to improve scalability and data capacity. The introduction of transaction batch workflows and the increased gas limit from 45M to 60M contributed to better performance and user experience. However, the fee floor for blob data did not result in significant revenue gains because the expanded capacity reduced the impact of higher fees.

The upgrade has had notable positive effects on the Ethereum ecosystem. Weekly transactions reached 16.4 million, with network fees remaining below $0.20 during high demand. Decentralized exchange (DEX) volume across the Ethereum network hit $26.8 billion, indicating a return of investor interest. The improved user experience and Layer 2 margins have supported stable costs and increased adoption, although the market cap remains a limiting factor for explosive growth.

Future scalability is expected with the upcoming Glamsterdam upgrade, which aims to further increase the gas limit and enhance Ethereum’s throughput according to technical analysis. Vitalik Buterin has emphasized the importance of balancing ambitious technical goals with long-term sustainability, reflecting a strategic shift in Ethereum's development approach. This period of mild austerity for the Ethereum Foundation is intended to support open-source infrastructure across various sectors while maintaining Ethereum’s status as a performant and scalable world computer.

How Does the Fusaka Upgrade Affect Ethereum's Network Revenue?

The Fusaka upgrade introduced a fee floor for blob data to potentially increase network revenue, but the expanded capacity allowed for more transactions without a significant price impact. This resulted in minimal revenue gains despite higher fees. The upgrade aimed to stabilize Layer 2 transaction costs, but the expected revenue boost did not materialize due to the increased network throughput.

What Impact Has the Fusaka Upgrade Had on User Experience and DEX Activity?

The Fusaka upgrade has significantly improved user experience through transaction batch workflows and increased network capacity. These enhancements have contributed to reduced mainnet congestion and lower costs, benefiting both users and Layer 2 solutions. The Ethereum network has seen increased DEX activity, with decentralized exchange volume reaching $26.8 billion and weekly transactions hitting 16.4 million. These improvements indicate sustained interest and potential for further growth within the Ethereum ecosystem.

What Are the Limitations of the Fusaka Upgrade in Driving Ethereum's Growth Potential?

Despite the positive effects of the Fusaka upgrade on scalability and user experience, Ethereum's large market cap limits its potential for explosive growth. Rising competition from other blockchains such as Solana and Avalanche restricts the parabolic upside typically seen in smaller-cap projects. While the upgrade supports Ethereum's position in DeFi and dApps, the market dynamics pose a ceiling for substantial price appreciation. Ethereum’s focus on long-term sustainability and performance may help maintain its leadership but may not drive rapid growth.

The future of Ethereum’s scalability lies in upcoming upgrades such as Glamsterdam, which aim to further increase the gas limit and improve throughput according to technical analysis. Parallel I/O BAL techniques have shown promising results in reducing BAL size while maintaining high throughput. These developments are crucial for Ethereum’s long-term sustainability and its ability to remain competitive in the blockchain landscape.