Ethereum's Fusaka Upgrade: Strategic Implications for Network Scalability and Gas Economics

Ethereum’s Fusaka Upgrade, scheduled for activation in November 2025, represents a pivotal evolution in the blockchain’s scalability and economic model. By bundling 11 Ethereum Improvement Proposals (EIPs), the upgrade introduces foundational changes to gas economics, data availability, and node resilience, positioning Ethereum to sustain its dominance in decentralized finance (DeFi) and Layer 2 (L2) ecosystems. This analysis evaluates the long-term value creation potential of these changes, focusing on their implications for transaction throughput, cost efficiency, and institutional adoption.

Gas Limit Expansion: A Catalyst for Throughput and Cost Reduction

The most transformative change in Fusaka is the block gas limit increase from 45 million to 150 million units [1]. This fourfold expansion directly addresses Ethereum’s historical congestion issues, enabling up to 100,000+ transactions per second (TPS) via L2 rollups like Arbitrum and Base [2]. By allowing more transactions per block, the upgrade reduces network congestion and lowers average gas fees by an estimated 70% compared to 2024 peaks [1]. For DeFi protocols, this means cheaper and faster execution of complex operations, such as automated market maker (AMM) trades and cross-chain settlements, which are critical for institutional-grade use cases.

The gas limit increase is complemented by EIP-7918, which ties blob base fees to execution costs, ensuring fairer pricing for L2 operators [5]. This alignment prevents unpredictable fee spikes, a key concern for DeFi platforms relying on consistent transaction costs. Additionally, EIP-7825 introduces a transaction gas limit cap to mitigate spam attacks, preserving network stability during high-demand periods [1]. Together, these changes create a more predictable and scalable economic model, attracting both retail and institutional users.

PeerDAS and Blob Capacity: Scaling Without Compromising Decentralization

EIP-7594 (PeerDAS) is a cornerstone of Fusaka’s scalability strategy. By enabling nodes to verify data availability through sampling rather than full blob downloads, PeerDAS reduces the computational and storage burden on validators [1]. This innovation allows Ethereum to process 48–72 blobs per block (up from 6–9 currently), directly enhancing L2 throughput [3]. For example, Arbitrum and Optimism , which currently handle 72% of Ethereum’s total value secured (TVS), will benefit from reduced data costs and faster finality times [5].

The increased blob capacity also supports Ethereum’s rollup-centric roadmap, aligning with future upgrades like Danksharding. By offloading data availability to L2s while maintaining security guarantees, Ethereum avoids the trade-offs between decentralization and scalability that plague other high-throughput chains [4]. This strategic approach ensures that Ethereum remains a secure settlement layer while enabling L2s to handle the bulk of user activity.

Testnet Roadmap: Ensuring Stability and Adoption

The Fusaka Upgrade’s testnet roadmap, including Devnet-3 (July 2025) and public testnets in September and October 2025, underscores Ethereum’s commitment to rigorous validation [1]. These phases have already achieved 80% validator participation in Devnet-3, a critical milestone for stress-testing the EIPs [3]. Public testnets on Holesky and Sepolia will further validate the upgrade’s compatibility with dApps and infrastructure providers, ensuring a smooth mainnet activation.

This phased approach minimizes risks of post-upgrade instability, which is crucial for maintaining institutional confidence. For instance, ETF inflows into Ethereum have tripled since June 2025, with BlackRock controlling 58% of the market share [2]. Such institutional demand is contingent on Ethereum’s ability to deliver reliable performance, and the Fusaka testnet roadmap provides a robust framework for achieving this.

Long-Term Economic and Institutional Implications

The Fusaka Upgrade’s economic impact extends beyond transaction costs. By reducing node storage requirements through innovations like Verkle Trees, Ethereum lowers the barrier to entry for new validators, promoting decentralization [5]. This is particularly important as the network transitions to a more institutional-grade infrastructure, with corporate staking accounts now holding $15.7B in ETH [1].

For DeFi, the upgrade’s focus on L2 efficiency and gas predictability will drive sustained growth in total value locked (TVL). Projects leveraging L2s like Arbitrum and Optimism are already outperforming Ethereum’s mainnet in daily transactions and active addresses [4]. With Fusaka, these platforms will further solidify their role as scalable solutions for DeFi, real-world assets (RWAs), and enterprise applications.

Conclusion: A Strategic Foundation for Ethereum’s Future

Ethereum’s Fusaka Upgrade is not merely a technical milestone but a strategic repositioning for long-term value creation. By expanding gas limits, optimizing data availability, and ensuring rigorous testing, the upgrade addresses the core challenges of scalability and cost efficiency. These changes will sustain Ethereum’s leadership in DeFi and L2 adoption while attracting institutional capital. For investors, the upgrade represents a catalyst for increased network usage, higher TVS, and a more robust economic model—factors that will drive Ethereum’s value proposition well into 2026 and beyond.

**Source:[1] Ethereum’s Fusaka Upgrade: What the November 2025 [2] Ethereum's Scalability Breakthroughs: A Catalyst for ... [3] Deconstructing Ethereum's Fusaka Upgrade: The Scaling [4] On-chain and Economic Impact of Layer 2 (L2) Solutions on Ethereum Network [5] Ethereum's Fusaka Upgrade: A Game-Changer for ...