Ethereum Upgrade Fusaka: On the Path to One Million Transactions Per Second

PeerDAS as the Heart of the Upgrade

The Ethereum upgrade Fusaka marks a decisive step in the technical advancement of the blockchain. At its center is PeerDAS (EIP-7594), which fundamentally optimizes the blobs introduced with the Dencun update in 2024 ^[1]. Instead of having to load complete blob data, validators can now sample only small pieces of data, which reduces bandwidth and increases efficiency ^[1].

The impact on Layer-2 solutions could be significant: For platforms like Base, a jump from 1,500 to an estimated 10,000 transactions per second is on the table ^[1]. The Ethereum Layer-2 solution Lighter could even achieve up to 350,000 TPS ^[1]. With further optimizations on the horizon, rollups could soon exceed the one million TPS mark within the ecosystem ^[1].

Technical Improvements for Greater Efficiency

Beyond PeerDAS, Fusaka brings a series of additional technical innovations. The gas limit, which represents the computational capacity per block, is expected to increase to up to 60 million ^[1]. With EIP-7939, the Ethereum Virtual Machine (EVM) receives a new operation code designed to make complex calculations more efficient ^[1].

For user experience, EIP-7951 is relevant, as it integrates a widely-used signature algorithm that is used in Apple devices, Android smartphones, and modern web logins ^[1]. This could allow wallets to seamlessly interact with existing hardware in the future ^[1].

The upgrade continues the focus on Layer-1 scaling begun with Pectra. The outdated architecture of the mainchain is to receive a makeover through "Lean Ethereum," with Zero-Knowledge SNARKs helping to bring the mainchain to a level competitive with Solana ^[1]. Developer Justin Drake refers to this as Ethereum's "Manhattan Project" ^[1].

Institutional Investors Making Purchases

While the technical foundation is being strengthened, institutional investors are showing buying interest despite the price decline. BitMine, the largest company with ETH holdings, recently acquired an additional 16,693 ETH valued at $50.1 million ^[2]. The wallet received the tokens from FalconX ^[2].

In parallel, Ethereum ETFs are showing positive developments. Following an eight-day outflow phase, there have been five consecutive days of net inflows ^[2]. BlackRock's ETHA, the largest spot ETH ETF by cumulative inflows, recorded $68.3 million in inflows in just the most recent trading session ^[2].

Market Outlook and Technical Indicators

Analytics firm Santiment predicts that ETH could soon reclaim the $3,200 mark, as low stablecoin yields suggest the cryptocurrency market has not yet overheated ^[2]. "Currently, yields are around 4 percent. This suggests that the market has not reached a major peak and could rise further," according to Santiment ^[2].

Technically, ETH is currently attempting to convert the resistance level at $3,070 into support ^[2]. A breakthrough above this level could enable a rise of over 15 percent to $3,590 ^[2]. The Moving Average Convergence Divergence (MACD) shows that buyers have a slight advantage, while the Relative Strength Index (RSI) signals greater upside potential than downside potential ^[2].

Markus Thielen of 10x Research described price levels below $3,000 as attractive "value levels" for ETH investments ^[1]. Tom Lee, a well-known Ethereum advocate whose Digital Asset Treasury currently holds approximately 3 percent of the available ETH supply, expects an upward movement toward $7,000 following a possible decline to $2,500 ^[1].