Ethereum has reached a new milestone with its Fusaka upgrade, activated on Wednesday at block height 18,200,000. This upgrade signifies the second major enhancement for the Ethereum network in 2025 and has already begun reshaping the landscape.
The immediate aftermath of the Fusaka upgrade saw Ethereum’s price surge by 4.3%, climbing to $3,200. This surge accompanied a noticeable increase in trading volume, which jumped from $28.2 billion to $32 billion within just six hours post-activation. Such activity signals robust interest from investors and traders alike.
Analysts suggest this price boost can be attributed to substantial accumulation from wallets holding between 1,000 and 10,000 ETH, highlighting strategic movements by larger investors. After the Fusaka activation, ETH maintained a trading range between $3,150 and $3,210, indicating a solid support level as traders reacted positively to the network’s developments.
Innovation Through PeerDAS
The introduction of PeerDAS, a groundbreaking data availability sampling system, is one of the cornerstone features of the Fusaka upgrade. Rather than requiring every node to store all blob data, PeerDAS manages bandwidth and storage by allowing nodes to retain only a fraction of it. This innovation enhances blob throughput capacity by a staggering eight times compared to prior limitations.
Vitalik Buterin, Ethereum’s co-founder, hailed PeerDAS as a significant step towards sharding, stating, “Sharding has been a dream for Ethereum since 2015, and data availability sampling since 2017, and now we have it.” This realization of sharding is expected to bolster the network’s ability to support expansive data requirements while maintaining security.
Network Configuration Enhancements
The Fusaka upgrade also introduces Blob-Parameter-Only configuration changes, which enable clients to increase blob capacity without necessitating a full hard fork. This flexibility is a crucial addition to Ethereum’s roadmap, allowing for incremental improvements and adaptations as network demands grow.
These upgrades include adjustments to base fees for blobs, ensuring that fees do not plummet even when gas prices fluctuate. Analysts have noted that several rollups have proactively increased the frequency of state-root submissions and optimized block intervals in anticipation of this upgrade.
Market Outlook
As ETH trades above significant technical levels, including the 100-hourly Simple Moving Average and the 23.6% Fib retracement level of its recent ascent from $2,718 to $3,239, it faces resistance around the $3,250 range. The market appears to be primed for potential further upside as it absorbs the implications of the Fusaka upgrade and adjusts to its new developments.
The successful implementation of Fusaka not only enhances Ethereum’s scalability but also signifies a pivotal moment in the network’s ongoing evolution, attracting both new participants and renewing interest among seasoned crypto investors.
