Ethereum Fusaka Upgrade Cuts Fees, Boosts Rollup Scalability
Ethereum Fusaka upgrade, scheduled for early December 2024, merges Dencun-based Fulu and Osaka enhancements and introduces PeerDAS distributed blob storage to expand blob capacity by over 400% and reduce node storage needs by up to 87.5%. Confirmed by Bitmine on November 12 after successful Holesky, Sepolia and Hoodi testnet trials, it lowers Layer-2 transaction fees for rollups like Arbitrum and Optimism, enables near-zero cost transactions and up to 2.4 million daily settlements. Supported by core developers including Vitalik Buterin, the upgrade aims to boost rollup scalability, maintain decentralization and deliver faster confirmations. Crypto traders should monitor post-upgrade ETH network usage, Layer-2 fee trends and potential volatility to position for bullish momentum.
Bullish
The Fusaka upgrade’s fee reductions, expanded blob capacity and throughput gains are set to lower Layer-2 costs and spur broader rollup adoption, driving higher ETH network utilization. Backed by core developers and proven in testnets, this protocol improvement typically fosters bullish sentiment. While short-term volatility around launch is likely, the long-term impact on scalability and cost efficiency supports an overall positive outlook for ETH.