Ethereum’s Fusaka Upgrade Goes Live — What It Means for ETH Wallets and the Network
Key Takeaways
- Ethereum price climbed over 4% in the past 24 hours, driven mainly by the Fusaka upgrade.
- The ETH is currently trading at around $3,215.06.
- The Fusaka upgrade went live yesterday, December 3.
- The core feature of the new upgrade is the introduction of PeerDAS.
- The upgrade enables faster scalability of the Layer-2 roll-ups without straining the Ethereum foundational layer and improves the gas limit to 60 million.
- As for the ETH wallets, the transitions are likely to become faster, seamless, and will gradually reduce gas fees.
Ethereum price climbed over 4% in the past 24 hours, driven mainly by the Fusaka upgrade. The ETH is currently trading at around $3,215.06. The market cap spiked to $387.94 billion, and 24-hour trading volume surged past 6% to touch $30.99 billion. The Fusaka upgrade went live yesterday, December 3. Though the upgrade does not affect the supply or tokenomics of ETH, it strengthens the core architecture of the network, paving the way for long-term gains.
How Does Fuska Upgrade Strengthens the Ethereum Ecosystem?
The popularity of the Ethereum Network often results in network congestion, higher transaction fees, and strain on the network. The Fusaka upgrade is meant to address these issues, and additionally, it provides groundwork for more powerful future upgrades.
The core feature of the new upgrade is the introduction of PeerDAS (Peer Data Availability Sampling). With this feature, the nodes can verify small pieces of data without downloading the entire content. Prior to the upgrade, the downloading of the entire piece of data, called ‘ blobs’, was necessary, demanding higher bandwidth and storage capacity. To put it simply, the nodes don’t have to read each byte to verify; instead, they can just validate by sampling a small piece. Thus, enabling faster scalability of the Layer-2 roll-ups without straining the Ethereum foundational layer. The upgrade also improves the gas limit to 60 million from the current 36 million. Enhanced scalability and lower fees make the future prospects of the network more promising.
What Does it Mean for Your ETH Wallet?
The upgrade is likely to reduce congestion, especially during volatile market events, and enable faster and seamless transactions. The transaction cost on networks such as Arbitrum and Optimism is likely to go down in the future. Ultimately, the network becomes more resilient due to the sufficiency of probabilistic checks instead of complete checks, enhancing the reliability of the wallets and other apps running on the network.
The Final Thoughts
The Fusaka upgrade sent a bullish signal to the market, boosting the price of ETH. The performance efficiency of the upgrade will have a detrimental effect on the future price of ETH and the prospects of the Ethereum network as a whole. As for the short term, even though the ecosystem upgrades, such as Fusaka, could act as a market catalyst, the macroeconomic and institutional factors considerably affect the price movements. Thus, investors are advised to exercise caution and keep themself updated about the key market indicators.
Also Read: Ethereum’s Fusaka Goes Live Today: A New Chapter For ETH
