The Fusaka upgrade of Ethereum, scheduled for activation on mainnet on December 3, 2025, has been described by Fidelity Digital Assets as the beginning of a “new era for ether’s value accumulation.” The update brings together a set of EIPs and parameter adjustments designed to improve scalability, reduce costs and reinforce Ethereum’s role as a settlement layer. Analysts argue that this upgrade pushes the roadmap toward clearer economic objectives, where technical improvements can translate directly into higher demand.
Ethereum’s Fusaka upgrade and its economic impact
Fusaka is a hard fork that follows Pectra, completed in early 2025, and bundles several EIPs focused on efficiency and capacity. Its core component is EIP-7594 (PeerDAS), which allows nodes to verify data availability by sampling small fragments rather than downloading entire datasets. This is complemented by EIP-7883, EIP-7825 and other EVM-focused improvements, forming a package that boosts efficiency while reducing network friction.
Ethereum’s upcoming Fusaka upgrade introduces a more focused and strategically aligned roadmap—a key shift that potentially offers positive long-term implications for ETH’s role in institutional portfolios.
Read more: https://t.co/5yhjLXZSx4 pic.twitter.com/2LOq11DxYf
— Fidelity Digital Assets (@DigitalAssets) November 20, 2025
A central theme in the upgrade is capacity expansion. There are active discussions to raise the gas limit per block from 45 million to 150 million — an increase of about 400%. EIP-7935 and EIP-7918 work together to coordinate this expansion, aligning blob fee calculations with execution costs. These changes aim to reduce latency and lower the operational burden on validators and nodes.
Fidelity Digital Assets argues that Fusaka marks a shift in Ethereum’s roadmap toward more explicit economic engineering, turning technical gains into mechanisms that reinforce ether’s value. Estimates suggest fees could fall by as much as 60%, a reduction that would make Ethereum more accessible for both users and dApps.
From a scaling perspective, expectations remain high: Layer-2 networks could target 100,000 TPS, while mainnet might reach 12,000 TPS by 2026. According to Fidelity, greater L2 throughput ultimately strengthens Ethereum’s settlement role, rather than undermining its economic relevance.
Market sentiment reflects this optimism. Ether crossed $4,300 in October 2025 and reached an all-time high of $4,950 earlier in August, signaling growing confidence in Ethereum’s long-term functionality. Even so, the history of major upgrades shows staged deployments and occasional delays — Pectra’s shift from late 2024 to early 2025 being a recent example — which highlights the network’s deliberate focus on security and testing across testnets like Hoodi and Holesky.
Fusaka represents a technical and economic reset that could strengthen ether’s value by combining lower transaction costs with significantly expanded capacity, laying the foundation for a more scalable and economically robust ecosystem.