Ethereum Set to Breakout in 2026 with Fusaka Update

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CoinMoi
11-30
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Ethereum is preparing for a major milestone with the Fusaka upgrade, scheduled to activate on December 3, 2025. Fusaka is not just a technical update, but also marks a major step forward in Ethereum's scalability, data efficiency, and sustainable economic model. This upgrade is expected to have a lasting impact on Layer-2 (L2) , developers, institutional investors, and ETH holders.

What Improvements Does Fusaka Bring?

1. PeerDAS – Increasing Scalability for Layer-2

Fusaka's standout feature is Peer Data Availability Sampling (PeerDAS) . Previously, validators had to download the entire blob data from Layer-2 to validate availability, which resulted in high hardware demands and high network costs. PeerDAS allows validators to download a small portion of data that is still sufficient to validate the entire data volume.

This helps:

  • Significantly reduces bandwidth and storage costs for nodes

  • Increasing blob throughput on Ethereum Primary Network

  • Supports Layer-2 rollups for cheaper and faster data processing

Thanks to PeerDAS, Ethereum can accommodate larger L2 transaction volumes without compromising security or decentralization.

2. BPO Forks – Phased Blob Capacity Expansion

Fusaka implements Blob Parameter Only (BPO) forks , which allow blob capacity to be increased in stages:

  • BPO1: blob increase from 6/9 → 10/15

  • BPO2: continued to increase to 14/21

A step-by-step upgrade strategy helps the network control risks and ensure stability before fully expanding its data processing capacity.

3. Improve the Enforcement & Consensus Layer

Fusaka also brings important upgrades to the Execution and Consensus classes:

  • Increasing the Block Gas Limit helps process more transactions per block

  • Optimize execution algorithms, reduce energy consumption and confirmation time

  • Support for new cryptographic standards, enhancing network security

These improvements ensure Ethereum runs smoothly, fast, and stable , ready for the massive growth of Layer-2 and Web3 applications.

Economic and Strategic Impact

Reduce Costs, Increase L2 Throughput

With PeerDAS and increased blob capacity, Layer-2 rollups will reduce the cost of publishing data to Ethereum. This means:

  • Lower transaction fees for users

  • Increase transaction volume , support DeFi, Non-Fungible Token, gaming and Web3 applications

  • Ethereum + L2 can reach 100,000+ transactions/second with widespread adoption

Strengthening the Economic Value of ETH

Fusaka introduced a reserve price floor for blob fees (EIP‑7918), maintaining minimum fees even when demand is low. This fee is partially burned , reducing the ETH supply over time.

This creates a sustainable value model:

  • Layer-2 development → fees increase → ETH burned → supply decreases

  • ETH Becomes an Important Underlying Asset for L2 and Web3 Payments

Lowering the Barrier to Node Operation

With PeerDAS, node operating costs are reduced, more individuals and organizations can participate in network validation, making it more decentralized and increasing network strength .

ETH Outlook in 2026

Fusaka is not only a technical upgrade but can also positively impact ETH price :

  • Institutional money could flow into Ethereum due to clear economic mechanisms

  • Layer-2 is growing strongly , burning fees are increasing, creating upward pressure on ETH price

  • Web3 applications are booming , including DeFi, Non-Fungible Token, gaming, AI agents, increasing the demand for ETH

Some optimistic forecasts suggest that ETH could reach $7,000–$9,000 by 2026 , if Fusaka’s implementation is successful and Layer-2 develops as expected.

Risks to Be Aware of

  • BPO forks need precise coordination to avoid technical errors

  • Layer-2 does not grow as expected → economic efficiency decreases

  • Competition from other blockchains and macro factors can Price Impact

The Fusaka upgrade marks a major step forward in bringing Ethereum closer to its vision of becoming the global Web3 infrastructure . With superior scalability, lower costs, and a clear value model, Fusaka lays the foundation for a strong growth phase for ETH towards 2026. This is an opportunity for developers, investors, and the community to participate in a decentralized, efficient, and sustainable network.

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The article Ethereum Set to Breakout in 2026 with Fusaka Update appeared first on CoinMoi .

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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