In brief

The network has activated Fusaka, delivering new data-sampling and blob-scaling features to mainnet.

Ethereum traded higher immediately after, with a steady increase in volume hours after the upgrade.

Developers and analysts say the upgrade strengthens Ethereum’s settlement layer and reshapes rollup economics.

Ethereum activated its Fusaka upgrade on mainnet on Wednesday, bringing the network’s second major upgrade this year and

introducing changes to data availability and block capacity that developers said would define its next phase of scaling.

The upgrade was activated at block height 18,200,000 in late afternoon, following test deployments across the Holesky,

Sepolia, and Hoodi test networks throughout October. Final readiness checks were completed across client teams earlier

this week.

Ethereum’s price has sprung to life, having traded between roughly $3,150 and $3,210 in the hours after Fusaka went

live, climbing steadily through Wednesday evening and past midnight early Thursday, according to CoinGecko data. It’s

currently up 4.3% on the day to $3,200.

Volume swelled from $28.2 billion to $32 billion at the time of writing, over a roughly six-hour period. The price

action has been attributed to “strong accumulation from shark wallets” holding 1,000-10,000 ETH, according to early

analysis from Santiment.

Fusaka’s activation “finally aligns” its base layer “with the scale of activity already happening” across its layer-2

ecosystem, Blockscout, an open-source block explorer for chains based on the Ethereum Virtual Machine, told Decrypt.

“Ahead of Fusaka’s activation, we saw signs of preparation for higher data throughput across the L2 networks we index

with the most visible shift in posting patterns,” it said.

Several rollups are “increasing the regularity of state-root submissions and adjusting block intervals,” a trend that

could mean “smoother sequencing and more regular batch updates,” they add. “The trend is incremental rather than

disruptive, but it is noticeable,” they said, adding that it suggests “an ecosystem getting ready for more capacity and

more predictable throughput.”

Fusaka introduces PeerDAS, a data availability sampling system that allows each node to store only a fraction of the

posted blob data, rather than every byte. It reduces bandwidth and storage requirements and gives the network room to

expand blob throughput by roughly eight times compared to previous limits.

“PeerDAS in Fusaka is important because it literally represents sharding,” Ethereum co-founder Vitalik Buterin tweeted

on the occasion. “Sharding has been a dream for Ethereum since 2015, and data availability sampling since 2017, and now

we have it.”

The upgrade also enables Blob-Parameter-Only (BPO) configuration changes, which let clients raise blob capacity without

a full hard fork, according to the Ethereum network’s official roadmap.

Alongside the base fee changes for blobs, the upgrade prevents blob fees from collapsing when gas prices rise, which

pays for running transactions and smart contract logic on Ethereum.

Fusaka also adds tweaks that make transactions safer and easier to run, which developers said could help reduce costs

and support decentralization as network activity grows.

Heavyweight update

Fusaka appears to be an “infrastructure-heavy update,” Shiv Shankar, CEO of decentralized zero-knowledge compute

marketplace Boundless, said in a statement shared with Decrypt.

The changes included are “long-standing requests” and “meaningfully expand capacity without disrupting the system’s

fundamentals,” he added.

Those improvements would likely “influence how value flows through Ethereum’s base layer, and the most direct

beneficiary is Layer 1 block space,” a Sygnum Bank study claims.

“When the network becomes more efficient in handling execution or processing larger volumes of data, the effects will

likely lead to a gradual increase in fee burn and validator rewards,” the bank wrote. “These will not be visible

immediately, but they will slowly accumulate as network activity rises.”

Fusaka would “alter the competitive positioning across rollups” and help “define the downstream effects of the next

cycle,” Guillaume Poncin, CTO at blockchain developer platform Alchemy, said in a statement shared with Decrypt.

Rollups are layer-2 scaling solutions for Ethereum that execute transactions off-chain but post transaction data to the

main network.

The upgrade “represents a structural improvement to Ethereum’s settlement architecture,” Edwin Mata, co-founder and CEO

of tokenization platform Brickken, said in a statement shared with Decrypt.

“By reducing the data load that rollups and validators must process, the network becomes more predictable in both

performance and cost,” Mata explained. “That predictability is what regulated institutions look for when assessing

whether a public chain can support issuance and post-trade activity at scale.”

Fusaka effectively “lowers the operational threshold for node participation” in such a way that it could widen the

validator base and reduce concentration risk, Mata added.

“Capital markets depend on resilient networks with no single point of failure, and improved decentralization directly

contributes to that requirement,” he said.