How Will the Ethereum Fusaka Upgrade with PeerDAS Change Layer 2 Rollup Costs and Scalability?

Is the Ethereum Fusaka Upgrade a Real Long-Term Catalyst for Layer 2 Rollups and Institutional Adoption?

Ethereum’s Fusaka upgrade went live on December 3, 2025, at 21:49 UTC. It adds PeerDAS data availability sampling and several core protocol changes that target capacity, efficiency, and security at the base layer.

Unlike short-term, narrative-driven events, the Ethereum Fusaka upgrade focuses on technical foundations. It aims to make Ethereum cheaper and more efficient for Layer 2 rollups, easier to operate for node runners, and safer and more attractive for institutions.

For builders, investors, and enterprises, the key question is simple: how does Fusaka change Ethereum’s cost structure, risk profile, and long-term potential as a settlement layer?

What Is the Ethereum Fusaka Upgrade?

Fusaka combines two coordinated upgrades across Ethereum’s architecture:

• Osaka for the execution layer (where transactions are processed)
• Fulu for the consensus layer (where blocks and finality are agreed)

Together, they form the Ethereum Fusaka upgrade. The changes target:

• Higher data throughput on Layer 1
• Better efficiency for nodes
• Stronger security and more predictable fees
• A smoother path for Layer 2 rollups to scale

Earlier in 2025, the Pectra upgrade focused on staking, validator operations, and account abstraction, and coincided with a price rise of roughly 30% for ETH. Fusaka is different. It is primarily a structural and infrastructure-focused upgrade, not a “number-go-up” catalyst on its own.

How Fusaka Changes Ethereum’s Base Layer

Before Fusaka, Ethereum already supported “blob” space for rollups, but capacity and node requirements limited how far Layer 2 ecosystems could scale. Fusaka raises that ceiling.

Key base-layer effects of the Ethereum Fusaka upgrade include:

Higher Layer 1 throughput for blobs

Fusaka expands blob capacity. More data can be posted per block. This directly benefits rollups that depend on Ethereum for data availability.

Lower average costs for rollups

With more blob space, competition for that space eases, which tends to pull blob fees down over time. Lower blob fees translate into cheaper transactions for users on Layer 2.

More efficient, resilient nodes

PeerDAS reduces storage and bandwidth requirements, so more operators can run full nodes or light clients with realistic hardware. That supports decentralization and network resilience.

Analysts at firms such as Coin Metrics expect these changes to make Ethereum-based rollups cheaper, easier to operate, and more attractive as a scaling option compared with alternative Layer 1s.

PeerDAS and Data Availability: The Core Innovation

The central technical feature of Fusaka is Peer Data Availability Sampling (PeerDAS). To understand why it matters, focus on the data availability problem.

On a modern rollup:

• Transactions execute off-chain (or off mainnet).
• The rollup posts compressed data back to Ethereum as blobs.
• Ethereum must ensure this data remains available and verifiable over time.

Before Fusaka:

• Every full node had to store all blob data.
• This raised hardware requirements.
• It made participation harder for smaller operators.
• It increased the cost of scaling data throughput.

With PeerDAS:

• Nodes store only a fraction of the blob data (for example, one-eighth).
• Nodes perform random sampling and cross-checks to confirm that the full blob data remains available across the network.
• The network, not each individual node, carries the full storage burden.

This approach:

• Cuts node storage requirements by up to about 80% (as highlighted by the Ethereum Foundation and core contributors).
• Raises effective data throughput for rollups by up to around 8x, without forcing every node to scale its hardware by the same factor.
• Makes it easier and cheaper to run nodes, which is vital for decentralization and trust.

For developers and protocol designers, an important side benefit is configurability. PeerDAS allows Ethereum to adjust blob capacity over time with less need for disruptive protocol overhauls. That flexibility helps the ecosystem respond to changing demand while preserving security.

What PeerDAS Means for Layer 2 Rollups

Layer 2 rollups are the main direct beneficiaries of the Ethereum Fusaka upgrade.

Concrete effects for rollups:

Lower blob fees over the medium term

More blob capacity reduces scarcity. When congestion falls, blob prices have room to ease, lowering the cost of posting rollup data.

More headroom for transaction growth

With higher data throughput on Layer 1, rollups can handle more user activity without hitting hard limits or extreme gas spikes.

Simpler scaling roadmaps

Rollup teams can lean more confidently on Ethereum as their long-term data availability layer, instead of considering complex workarounds or alternative chains.

Stronger security assurances

PeerDAS preserves Ethereum’s security guarantees while distributing data storage more efficiently across nodes.

For rollup builders, this means the Ethereum Fusaka upgrade makes Ethereum a more scalable, predictable, and cost-effective base layer for the next cycle of user growth, DeFi activity, and on-chain applications.

Gas Design, Security Hardening, and Fee Stability

Beyond PeerDAS, Fusaka includes several changes focused on safety and economic robustness.

Key elements:

EIP-7918: Congestion-aware blob pricing

This EIP ties blob fees more closely to real network congestion. When demand for blob space rises, prices adjust dynamically. This promotes:

• Fairer fee formation
• Better incentives for users and rollups to optimize usage
• More stable economics for the protocol over time

Per-transaction gas limits to reduce attack surface

By setting clearer limits on how much computation a single transaction can demand, Fusaka reduces the risk of denial-of-service (DoS) patterns that attempt to overload nodes.

This adds a safety layer that matters especially for institutions and critical infrastructure.

More efficient node behavior

Various low-level changes streamline how nodes process blocks and handle complex workloads. While these details are largely invisible to end users, they matter greatly for network liveness and reliability during peak load.

Altogether, these upgrades support Ethereum’s position as a credible, secure, and professionally run settlement layer in a competitive multi-chain environment.

User Experience: Passkeys, secp256r1, and Institutional Readiness

Fusaka also improves how end users and institutions authenticate and manage keys:

secp256r1 signature support

Ethereum now supports the widely used secp256r1 curve. This is the same curve that underpins many hardware-backed authentication methods in mainstream devices.

Passkey-style authentication

With secp256r1 support, wallets and custodians can integrate:

• Apple Secure Enclave
• Android Keystore
• FIDO2/WebAuthn-style passkeys

This allows users to sign transactions using device-backed keys rather than only traditional private keys and seed phrases.

Reduced reliance on seed phrases

For enterprises and institutions, seed phrases create operational risk and compliance headaches. Passkey-style flows and hardware-backed keys align better with corporate security policies and audit requirements.

Industry leaders, including Sharplink CEO Joseph Charom, have highlighted Fusaka as a meaningful milestone for institutional adoption. The combination of stronger security, better authentication options, and predictable economics lowers friction for banks, funds, and fintechs that want to integrate Ethereum into their products.

Market Impact: Price Reaction vs. Structural Change

Around the time of the Ethereum Fusaka upgrade, ETH saw a short-term increase of roughly 9% in one day. That move likely reflected improved sentiment and expectations about long-term scalability.

However, from a YMYL and risk-aware perspective, it is important to separate structural upgrades from speculative trading:

• Fusaka improves Ethereum’s technical capacity and security.
• It does not guarantee sustained price appreciation on its own.
• Long-term effects depend on:
  • Adoption and volume on Layer 2 rollups
  • Institutional inflows and integrations
  • Broader macro and crypto market conditions
  • Competing chains’ progress (e.g., Solana, Polygon, and others)

For investors and risk managers, the Ethereum Fusaka upgrade should be viewed as an infrastructure improvement that enhances Ethereum’s long-term viability as a settlement and data availability layer. Portfolio decisions still require independent research, diversification, and a clear understanding of volatility and downside risk.

No part of this analysis should be treated as financial advice. Use it as technical and strategic context for deeper due diligence.

What the Ethereum Fusaka Upgrade Means for Different Stakeholders

The Ethereum Fusaka upgrade affects each stakeholder group differently:

Everyday users

• Expect gradually lower fees on Layer 2 rollups over time, especially during periods of high activity.
• Benefit indirectly from a more secure and resilient base layer.

DeFi and NFT projects

• Gain a more scalable environment for high-volume, on-chain activity via rollups.
• Can plan product roadmaps around Ethereum + Layer 2 rather than exploring fragmented alternatives.

Rollup teams and infrastructure providers

• See direct cost and capacity improvements through expanded blob space and PeerDAS.
• Can focus more on UX and product differentiation instead of constantly battling data availability limits.

Node operators and validators

• Face lower storage and bandwidth requirements due to PeerDAS.
• Can operate with more modest hardware while still contributing meaningfully to network security.

Institutions and enterprises

• Benefit from better authentication (secp256r1, passkeys) and clearer security guarantees.
• View Ethereum as a more robust platform for tokenization, payments, and digital asset infrastructure.

Long-term ETH holders

• Gain from a stronger fundamental story: more throughput, better security, and a clearer path for Layer 2 growth.
• Still need to weigh regulatory, market, and technology risks carefully.

Strategic Takeaways

Summarizing the Ethereum Fusaka upgrade in practical terms:

• It raises Ethereum’s data throughput for rollups through expanded blob capacity.
• It reduces node requirements via PeerDAS, supporting broader decentralization.
• It strengthens security and fee design through EIP-7918 and gas-limit adjustments.
• It improves user and institutional UX with secp256r1 and passkey-style authentication.
• It supports long-term growth of the Layer 2 ecosystem, rather than chasing short-term price moves.

For builders, investors, and institutions, the key is to map these changes onto concrete decisions:

• How will lower and more predictable blob fees affect business models?
• Which rollups gain the most from Fusaka’s data availability improvements?
• How can products integrate device-based authentication to reduce friction and risk?
• What monitoring or metrics will best track the real-world impact of PeerDAS over the next 6–24 months?

The Ethereum Fusaka upgrade does not rewrite the entire ecosystem overnight. Instead, it strengthens the core rails that future growth will rely on.