Ethereum’s Fusaka Upgrade to Lower Costs and Boost Efficiency in December
Ethereum's upcoming network upgrade, Fusaka, is anticipated to lower costs and enhance efficiency, according to VanEck. Set to launch in December, Fusaka aims to improve data availability for rollups, which bundle transactions before settling on Ethereum.
Key Features of Fusaka
- Introduces Peer Data Availability Sampling (PeerDAS) allowing validators to verify blocks by sampling smaller data pieces instead of downloading all transaction data.
- Reduces bandwidth and storage demands, enabling an increase in Ethereum’s "blob" capacity without network strain.
- Aims to cut costs for rollups, resulting in cheaper transactions for users as demand for rollup data continues to rise.
Impact on Ethereum (ETH)
- The upgrade highlights Ethereum’s transition away from relying on base layer fees.
- Despite a decline in mainnet fee revenue due to increasing rollup activity, ETH's role in settling rollup transactions strengthens its position as a monetary asset.
- Potential dilution risk for unstaked ETH holders as institutional players accumulate ETH for staking yields.
- Fusaka is expected to attract more institutional adoption by reinforcing Ethereum’s centrality in the scaling ecosystem.
VanEck notes that while technical challenges remain, Fusaka represents a crucial step in Ethereum’s rollup-centric roadmap with significant implications for both users and long-term holders.