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Ethereum’s Fusaka Upgrade: A New Era of Scalability and Efficiency Begins

Ethereum’s Fusaka Upgrade: A New Era of Scalability and Efficiency Begins

Published:
2025-12-05 02:03:37
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[TRADE_PLUGIN]ETHUSDT,ETHUSDT[/TRADE_PLUGIN]

On December 3, 2025, the ethereum network successfully activated its highly anticipated Fusaka upgrade, marking a pivotal moment in its evolution. This seamless deployment, completed in a remarkably swift 15 minutes, introduces a suite of groundbreaking enhancements designed to fundamentally address Ethereum's scalability challenges and improve its overall efficiency. The core innovations of Fusaka include the implementation of PeerDAS (Peer Data Availability Sampling), an 8x multiplier for rollup data capacity, and the integration of passkey signatures for wallet authentication. Collectively, these features are poised to dramatically increase network throughput, significantly reduce transaction costs for end-users, and streamline the user experience by moving towards more intuitive security models. The successful activation of Fusaka is widely seen as a critical step in Ethereum's roadmap, transitioning the network towards a more scalable and sustainable future where decentralized applications (dApps) and layer-2 solutions can flourish without being bottlenecked by high fees and congestion. This upgrade solidifies Ethereum's commitment to its rollup-centric scaling strategy, empowering solutions like Optimism, Arbitrum, and zkSync to process transactions more cheaply and efficiently. As a professional with a bullish outlook on digital assets, I view the Fusaka upgrade not merely as a technical update, but as a fundamental catalyst that enhances Ethereum's value proposition as the leading programmable blockchain. By directly tackling the trilemma of scalability, security, and decentralization, Fusaka strengthens Ethereum's competitive moat. The reduction in layer-2 costs will likely accelerate mainstream adoption of DeFi, NFTs, and other on-chain activities, while passkey signatures lower the barrier to entry for new users. This sets the stage for increased network utility and demand for ETH, the network's native asset, which is essential for security (staking) and transaction fees. In the context of the broader financial sector's digital transformation, a more scalable and user-friendly Ethereum positions itself as a robust infrastructure layer for the future of finance. The timing of this upgrade, now live as of early December 2025, provides a concrete foundation for the next growth phase of the Ethereum ecosystem.

Ethereum's Fusaka Upgrade Activates, Ushering in Scalability and Efficiency

The Ethereum network marked a historic milestone on December 3, 2025, with the successful deployment of the Fusaka upgrade. This update, activated seamlessly in just 15 minutes, introduces groundbreaking improvements including PeerDAS, an 8x multiplier for rollups capacity, and passkey signatures—collectively enhancing scalability, reducing transaction costs, and optimizing user experience.

Vitalik Buterin's teams broadcasted the event live, showcasing the ecosystem's maturity. Analysts anticipate Fusaka's technical advancements will accelerate ETH adoption, potentially influencing its market price and reinforcing Ethereum's dominance in the LAYER 2 ecosystem.

Ethereum Completes Fusaka Upgrade, Expanding Rollup Capacity and Network Efficiency

Ethereum's Fusaka upgrade went live on December 3, 2025, at epoch 411392, marking a significant leap in scalability and layer-2 performance. The upgrade, a blend of Fulu and Osaka, simultaneously enhances both consensus and execution layers. Key improvements include a raised gas limit to 60 million per block and quadrupled blob capacity via PeerDAS (Peer Data Availability Sampling), which slashes node verification burdens.

PeerDAS revolutionizes data availability by allowing nodes to validate through random samples rather than full downloads—cutting synchronization overhead by 530 GB. This advancement is a boon for rollup networks like Base, Arbitrum, and Optimism, which depend on Ethereum for settlement. The upgrade's expanded blob capacity could push throughput to new heights, reinforcing Ethereum's dominance in smart contract platforms.

Ethereum Targets $3,400 as Fusaka Upgrade and Bitmine's $55M ETH Purchase Fuel Rally

Ethereum’s Fusaka upgrade went live today, delivering performance enhancements aimed at reducing network congestion and optimizing transaction flow. Developers view this as a critical step in Ethereum’s scalability roadmap, reinforcing its capacity to support high-throughput applications without sacrificing decentralization.

Institutional confidence surged as Bitmine acquired 18,345 ETH (~$55 million), a MOVE linked to Tom Lee’s investment circle. This bullish signal coincides with ETH testing the $3,100 resistance level, with traders eyeing a breakout toward $3,400.

The upgrade’s timing aligns with Ethereum’s upward trajectory, mirroring cyclical patterns observed in 2017 and 2020. Market participants now watch whether the combination of technical improvements and institutional demand can sustain momentum.

Ethereum's Institutional Exodus: Treasury Purchases Collapse 81%

Ethereum's once-dominant position in corporate crypto treasuries is unraveling. Purchases by institutional holders plummeted 81% from 1.97 million ETH in August to 370,000 ETH by November, according to Bitwise data. The $3,200 price level now acts as stubborn resistance.

BitMine emerges as a notable outlier, accumulating 3.7 million ETH while smaller firms become net sellers. 'This was the altseason playbook,' observes Bitwise analyst Max Shannon, referencing the evaporated enthusiasm that once buoyed ETH's institutional appeal.

The trend suggests a broader recalibration rather than temporary weakness. As treasury inflows dwindle, Ethereum faces its first sustained test of institutional conviction since transitioning to proof-of-stake.

Uniswap Founder Accuses Citadel of Undermining DeFi Principles

Hayden Adams, founder of Uniswap, has publicly criticized Citadel Securities for attempting to impose traditional financial regulations on decentralized finance (DeFi). The clash highlights a growing tension between Wall Street institutions and the crypto-native ethos of autonomy and decentralization.

Adams specifically called out Citadel's role in the 2021 ConstitutionDAO incident, where the firm allegedly interfered with a community-driven bid to acquire a rare copy of the U.S. Constitution. "First, Ken Griffin stabbed ConstitutionDAO in the back," Adams posted on X, referencing Citadel's founder. "Now he's asking the SEC to treat software engineers like centralized intermediaries."

The dispute centers on Citadel's lobbying efforts for stricter SEC oversight of DeFi protocols—a move Adams argues WOULD fundamentally alter the permissionless innovation that defines the space. Crypto communities have rallied behind Adams' stance, viewing it as a defense of DeFi's core values against institutional encroachment.

BitMine's $150M Ethereum Accumulation Strategy Targets 5% Supply Control

BitMine has aggressively expanded its Ethereum holdings with a $150 million purchase this week, executed through Kraken and BitGo. The firm now controls over 3% of ETH's circulating supply, with CEO Tom Lee framing the move as infrastructure-building rather than speculative positioning. Market corrections create opportunities for institutional players, he suggests, comparing Ethereum's current adoption phase to Bitcoin's 2017 inflection point.

The accumulation strategy coincides with Ethereum's Fusaka upgrade and favorable macroeconomic conditions. BitMine's stock (BMNR) rallied 15% on the news, mirroring ETH's price appreciation. Lee confirms a 39% increase in weekly ETH purchases, signaling unwavering conviction despite lingering market doubts about Ethereum's long-term value proposition.

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