Ethereum’s Fusaka Upgrade: Revolutionizing Scalability and Boosting ETH’s Economic Power
- The Fusaka upgrade, which will happen on December 3, 2025, will bring about a big change to Ethereum.
The name “Fusaka” comes from putting together “Fulu” and “Osaka.” It updates both the consensus layer, where validators agree on transactions, and the execution layer, where smart contracts run.
One of the main changes is that the block gas limit has been raised from 45 million to 150 million. This means that more transactions can happen in each block without slowing down.
Peer-to-Peer Data Availability Sampling, or PeerDAS, lets nodes share data checks. It could raise the number of data blobs per block to 10–14, which would let the network handle a lot more information safely.
Verkle Trees make it easier to store and access data. Nodes sync more quickly, and it works with “stateless clients” that don’t need a full history.
EIP-7918 and other changes set a minimum price for data blobs, even when things are quiet. This makes Layer 2 usage directly linked to ETH fees.
Fidelity’s Take on Value Accrual
Fidelity says in their report “The Fusaka Upgrade: Scaling Meets Value Accrual” that this is the most exciting update for Ethereum in years. Analyst Max Wadington says that the goals are no longer scattered; they are now clear: scale the main layer, boost data blobs, and make the user experience better.
Value accrual means that ETH holders get more benefits. Layer 1 scaling adds more activity to the base chain, where fees burn ETH and give stakers rewards.
Based on Fidelity’s math, EIP-7918 could have brought in more than 24,000 ETH in revenue since earlier upgrades. At today’s prices, that’s millions of dollars. PeerDAS increases the amount of data available while keeping it safe. When combined with fee floors, it turns cheap data into a steady stream of money. Fidelity gave out charts that showed possible revenues. If demand stays high, annual earnings could reach big numbers with more blobs.
Fusaka wants to handle more users without charging a lot. More apps and people might come if gas fees go down because of better throughput. It comes after Pectra on Ethereum’s roadmap. Layer 1 is getting stronger, which is good for Layer 2 solutions like rollups, but it also sends value back to ETH.
Binance Academy says it keeps decentralization while growing. More TPS means more transactions per second, which cuts down on wait times. I think this strikes a good balance between growth and safety. But for success, people need to use it. If the fees go up too much, some people might switch networks.
Potential Downsides
Fidelity says there are trade-offs. It costs about $6 more per blob to get higher blobs. That could mean $30 million more in fees each year for busy Layer 2s like Base. This could cut into profits for smaller Layer 2s or raise prices for users. There could be more competition from other data providers. Objectively, it makes Ethereum’s liquidity edge stronger, but if costs get too high, it could slow down new launches.
