Ethereum surpasses $3000 as Fusaka upgrade enhances Layer-2 scaling capabilities
Ethereum has recently surpassed the $3,000 mark following the introduction of its Fusaka upgrade on December 3. This significant network enhancement has brought about the implementation of data sampling technology, opening up possibilities for increased layer-2 throughput.
The cryptocurrency’s value surged by 10% on December 2 in anticipation of the upgrade activation, which took place at 21:49 UTC on December 3. Fusaka represents Ethereum’s second major hard fork of the year, following the Pectra upgrade in May.
The key feature of the Fusaka upgrade is the introduction of PeerDAS, a data sampling protocol that allows validators to verify information without needing to download complete datasets. This shift in architecture reduces bandwidth requirements by up to 85% while enabling potential 8x increases in data capacity.
The upgrade was activated at epoch 411,392 on December 3, incorporating 12 Ethereum Improvement Proposals focused on scaling infrastructure rather than user-facing features. Central to the upgrade is EIP-7594, which introduces PeerDAS technology, altering how nodes handle blob data from layer-2 networks.
Under the updated system, validators now sample random sections of data instead of storing complete payloads. This adjustment maintains the security of the network while significantly reducing the resources required by node operators. Additionally, the upgrade raises the default block gas limit to 60 million from 45 million and limits individual transactions to 16.7 million gas to prevent denial-of-service attacks.
The implementation of Two Blob Parameter Only forks is scheduled to incrementally increase data capacity. The first, BPO1 on December 9, raises blob targets from 6 to 10 per block and maximums from 9 to 15. Subsequently, BPO2 on January 7, 2026, aims to increase targets to 14 and maximums to 21.
These adjustments, focusing solely on configuration updates, allow for quick scaling without necessitating full network hard forks. This phased approach enables developers to monitor performance between capacity increases effectively.
Analysts predict that the upgrades could lead to a reduction in layer-2 data fees of 40-60% over time. Decreased costs widen the design space for applications in decentralized finance, gaming, and social platforms that rely on high transaction volumes.
The evolution towards modular scaling, where execution occurs on layer-2 networks while Ethereum provides settlement and security, sets the stage for supporting billions of users without requiring home validators to transition to datacenter-grade infrastructure. PeerDAS also paves the way for future blob capacity expansions, with planned additional BPO forks to support ecosystem growth.
The price surge of Ethereum coincided with an overall strength in the cryptocurrency market, with Bitcoin trading above $96,000 and major altcoins like XRP, BNB, and Solana posting double-digit gains in a 24-hour period. Ethereum futures open interest increased to $3.02 billion, indicating a return of traders to leveraged positions, while spot trading volume rose by 40% to $26.6 billion, surpassing the seven-day average significantly.
