Ethereum’s Fusaka upgrade goes live with PeerDAS to boost Layer‑2 scaling
Ethereum’s Fusaka upgrade activated on mainnet (Epoch 411392) — introducing Peer Data Availability Sampling (PeerDAS) to fragment rollup blobs, cut node bandwidth, and unlock up to ~8x data throughput for Layer‑2s and rollups. Fusaka enables “instant‑feel” transactions by supporting preconfirmations that reduce latency from minutes to milliseconds, while lowering blob fees and expanding rollup capacity without sacrificing decentralization. The Ethereum Foundation highlights benefits for users, developers, node operators and enterprises. Market reaction: analysts and traders view Fusaka as a potential bullish catalyst for ETH. Since Dec 1 ETH had risen ~13% (about 17% month‑to‑date in the later report), and technical setups resembled patterns seen before the Pectra upgrade, which preceded a substantial rally in 2023. On‑chain data show accumulation by large holders — addresses holding ≥$1M in ETH rose ~4.7% (from 13,322 to 13,945), implying roughly $623M of added top‑tier capital. Takeaway for traders: Fusaka materially improves Layer‑2 throughput and user experience, which strengthens Ethereum’s fundamental narrative and could support ETH price; however, this is not trading advice — manage risk, watch volume, order‑flow and on‑chain flows for confirmation of sustained price moves.
Bullish
Fusaka introduces a protocol-level scaling improvement (PeerDAS) that materially increases Layer‑2 data throughput, lowers blob fees and enables preconfirmation-driven near‑instant UX. These are concrete fundamental upgrades that improve Ethereum’s scalability and usability — factors that historically support demand and valuation for ETH. Market signals in the latest reporting support a bullish view: ETH had already shown price strength prior to or around activation, technical patterns resembled those before a previous upgrade (Pectra) which preceded a major rally, and on‑chain data indicate accumulation by large holders (addresses ≥$1M increased ~4.7%). For short‑term traders, the upgrade can provide a bullish trigger if accompanied by sustained volume, reduced sell pressure, and positive order‑flow; initial volatility is likely as markets digest the news. For medium‑ to long‑term investors, improved Layer‑2 throughput and lower transaction/friction costs strengthen Ethereum’s growth narrative and could increase real demand for ETH (staking, fees, collateral), supporting price appreciation over time. Risks that temper the bullish case: upgrades can be priced in ahead of activation, technical issues or slower-than-expected rollup adoption could limit immediate impact, and broader macro or risk‑off events can overwhelm protocol fundamentals. Traders should monitor on‑chain flow, Layer‑2 activity, blob fee trends and liquidations for confirmation.