Fusaka Launches: Ethereum’s Performance Soars, Layer 2 Capacity Unlocks New Era

Ethereum's scaling landscape just got a major upgrade. Fusaka is now live, delivering a one-two punch of enhanced network performance and a massive expansion of Layer 2 capabilities.

The Core Upgrade: Speed Meets Scale

Fusaka isn't just another incremental update. It directly tackles Ethereum's perennial challenges—network congestion and high fees—by supercharging the underlying infrastructure. Think of it as widening the highway and adding express lanes simultaneously. Transactions process faster, costs become more predictable, and the entire ecosystem breathes easier.

Layer 2's Big Break

The real story is the capacity unlock for Layer 2 solutions. Fusaka provides the robust, high-throughput foundation that rollups and sidechains need to operate at their full potential. This means applications can finally deliver the seamless, low-cost user experience they've been promising—without constantly bumping against base-layer constraints. It's the infrastructure play that could finally make crypto feel, well, usable for the next hundred million users.

A Provocative Edge for Builders

For developers, this changes the calculus. Building complex, high-frequency dApps no longer requires painful trade-offs between security, cost, and performance. Fusaka offers a more viable path forward, potentially shifting innovation velocity into a higher gear. Of course, in crypto, a tech breakthrough is often just a prelude to the next speculative frenzy—because what's a capacity upgrade without a few fresh narratives to pump?

The bottom line? Fusaka's launch isn't just a technical milestone; it's a critical enabler for Ethereum's next chapter. The network gets faster, Layer 2 gets room to run, and the whole ecosystem gets a much-needed shot of scalability. Now, about those gas fees...

A foundation for near-instant transactions

According to the Ethereum Foundation, Fusaka brings the network closer to a world where transactions feel almost instant. By using preconfirmations, transaction times are reduced from minutes to milliseconds, and lower fees create a new level of usability for the network.

Fusaka is now live and finalized on Mainnet! We're busy looking at the data now and will update you on how the networking LAYER looks once we have enough samples!

In the meantime, please report any bugs you see with your nearest friendly client dev! https://t.co/XF6B1v5lGP

PeerDAS allows Ethereum to dramatically increase the amount of data Layer-2 networks can process, boosting their capacity by up to eight times. Instead of requiring every node to download complete data blobs, Fusaka splits the information into smaller pieces that nodes can share and sample from each other. 

This change helps the network process transactions more quickly, eases the load on bandwidth, and lowers fees for users who rely on rollups.

This update is especially important because Ethereum relies heavily on rollups to manage the large volume of activity across decentralized finance (DeFi) platforms, non-fungible tokens (NFTs), and other on-chain applications.

Analysts see a catalyst for ETH price momentum

Market observers are closely watching Ethereum, seeing Fusaka as a possible trigger for renewed gains in the price of Ethereum (ETH). crypto trader MerlijnTrader recently noted that Ethereum’s previous upgrade, Pectra, led to a 58% price surge, and believes Fusaka has the potential to drive even stronger upside since its improvements are more foundational.

ETHEREUM: RSI ALREADY SPOKE.

Price is coiling tight. RSI broke out.
Momentum leads, price follows.

$3.4K is next if this ignites.

The MOVE is brewing.
Watch $ETH before it moves. pic.twitter.com/06rm1SxFh0

Over the last few weeks, Ethereum has already displayed notable recovery. ETH has risen more than 13% since December 1 and remains up over 17% for the month. Traders have noticed a bullish divergence between Ethereum’s price and the Relative Strength Index (RSI), the same pattern that came before the network’s sharp seven-day rally during the Pectra upgrade in May 2023.

At the same time, large investors seem to be positioning ahead of the upgrade. The number of wallets holding at least $1 million in ETH has increased from 13,322 to 13,945, adding more than $623 million in concentrated holdings — a move that has historically signaled strong institutional confidence.

“This literally represents sharding”

One of the biggest technical milestones inside Fusaka is that PeerDAS finally delivers the first real FORM of sharding, a long-promised evolution in Ethereum’s roadmap.

PeerDAS in Fusaka is significant because it literally is sharding.

Ethereum is coming to consensus on blocks without requiring any single node to see more than a tiny fraction of the data. And this is robust to 51% attacks – it's client-side probabilistic verification, not… pic.twitter.com/OK81xBteER

Ethereum Co-Founder Vitalik Buterin highlighted the moment, stating: “PeerDAS in Fusaka is important because it literally represents sharding. Sharding has been a dream for Ethereum since 2015, and data availability sampling since 2017, and now we have it.”

Fusaka also introduces a system called Blob-Parameter-Only configuration, which allows Ethereum to increase blob capacity in future upgrades without a full hard fork. This means scaling enhancements can now happen more smoothly and more regularly.

Additional fee-structure updates ensure blob fees can’t collapse during periods of high gas demand, helping maintain stability as more activity moves on-chain.

Layer-2 networks already preparing

Rollup teams have been quietly adjusting their infrastructure ahead of the upgrade. Blockscout, a major explorer for Ethereum-based chains, observed a visible shift in how Layer-2s are posting data. They said the network is showing: “Signs of preparation for higher data throughput across the L2 networks we index with the most visible shift in posting patterns.”

Rollups have reportedly begun increasing the frequency of state-root submissions and optimizing their block intervals — changes that suggest smoother sequencing and more predictable transaction batching from here on.

Blockscout added that the trend is “incremental rather than disruptive, but it is noticeable,” describing the upgrade as a crucial alignment between Ethereum’s base layer and the massive activity already occurring above it.

A strengthened base before the next major step

Ethereum has been the most widely used decentralized blockchain for years, but success has come with challenges, congestion, high fees, and rising demands on nodes. Fusaka helps Ethereum handle its biggest challenges by lowering bandwidth needs and letting the network process more data safely.

Developers see it as strengthening the foundation before adding more layers. Users may not notice the change right away, but everything that comes after depends on Fusaka being in place.

The Ethereum community is already looking ahead to Glamsterdam, a major upgrade planned for next year. Without Fusaka, that kind of growth WOULD not be possible.

Ethereum’s Fusaka upgrade has started improving the network. DeFi activity, NFT minting, and Layer-2 transfers are running more smoothly. The changes are small at first, but they lay the groundwork for wider adoption.

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