'%20x='0'%20y='0'%20height='100%25'%20width='100%25'%20%0A%20%20%20%20%20%20%20%20%20%20xlink%3Ahref='data:image/jpg;base64,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'%3E%3C/image%3E%3C/svg%3E)
The rapid growth and development of DeFi will require fast and robust L1 blockchains. However, with the advent of scaling problems and inefficiencies in L1s, it became paramount that there be a more decentralized on-chain solution. L2s were a way out of those limitations, as they allowed roll-ups to boost the efficiency of on-chain transactions. Developers and crypto enthusiasts, therefore, keep a close eye on any L2 innovations that could transform the market.
Ethereum’s Fusaka, which went live on December 3, 2025, is one such innovation that could have a far-reaching impact on how the decentralized financial system operates. It is a major network upgrade that increases the block gas limit to 150 million. Here's more on the topic.
Note: Crypto investments involve significant risk. Do not take the views mentioned here as financial advice. Please conduct thorough research before making any investment.
What is Fusaka?
Fusaka changes how nodes handle data verification across the network. At present, every node downloads all the data to verify the network, which creates a bottleneck. The current L2s hit their limit at 6 blobs per block, keeping fees higher than they need to be.
Trending
What the new L2 upgrade essentially does is introduce PeerDAS (Peer Data Availability Sampling). So, now, nodes will not download entire blobs of data but instead sample portions cryptographically to verify everything that is available. Verkle Trees will compress proofs into easier-to-check pieces, thereby making the entire system efficient. The new upgrade introduces twelve code-level changes to improve the overall scalability of the network.
How Fusaka benefits Ethereum
Leads to lower L2 fees
With innovations like Fusaka, L2 fees are expected to drop by 40-60%. It is expected to reduce hardware and bandwidth costs. Applications that were too costly to run would become economically viable. The most important part is that scaling happened without forcing everyone to run expensive infrastructure.
Such L2 upgrades are not only good for scaling but should also help Ethereum in other ways, as described in the following sections.
Increases the throughput of Ethereum
The new upgrade uplifts the block gas limit to 150 million. Hence, it increases the amount of data Ethereum can process in one block.
Allows newer blockchain-based applications
Fusaka will enable new applications on Ethereum that were hindered to date due to the cost of posting transaction data in L1. Now, with the new L2 upgrade, this dynamic is expected to change.
The lower cost of transactions and high throughput open up new possibilities for Ethereum, which may soon have on-chain gaming applications that can process real-time changes or data-heavy AI applications.
Makes the blockchain less energy-intensive
Fusaka posits Ethereum as an eco-friendly blockchain network. With Fusaka nodes, you no longer need to download full blobs. So, the storage requirement and the bandwidth consumption of the Ethereum network will decrease.
L1 blockchains have long had a negative environmental footprint due to the high energy required for processing transactions or mining blocks. However, with the new L2 upgrade, Ethereum stands to become a more sustainable blockchain network.
Improves end-user experience
Fusaka improves the end-user's experience while handling any Ethereum-based application. Transactions become faster and cheaper. Traffic congestion on the network goes down, and thus the responses from the various applications on the network improve.
Helps achieve a more decentralized blockchain network
Finally, Fusaka makes way for greater decentralization by allowing more people to run nodes. It increases the number of verifiers in the network. All these factors imply stronger decentralization and more robust security.
One major concern, however, is whether this upgrade will compromise the security of the network, and the simple answer is no. Rather, the new upgrade will offer a potent combination of efficiency without compromising on security.
At present, L2 solutions like Base do ~$1B daily volume, and Arbitrum has a TVL of $2.8B. These statistics show that the demand for better L2 solutions exists, but the infrastructure just cannot serve efficiently. If the latest L2 upgrade takes off well, it might contribute to the $ETH price action in the long term.
Also, in the next six to twelve months, we expect transactions to be cheaper, applications to run more smoothly, and better onboarding. When this happens, most people will only see one noticeable change: that Ethereum works better. As Fusaka went live, the price of Ethereum jumped by 6%, reaching a daily high, reflecting the investors' excitement for the upgrade and how big a technological void it fills.
