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Ethereum Is Transitioning to a More Interesting Phase: Fusaka

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The Ethereum network resembles a big digital city, in which traffic jams occur at rush hours. At such a time, prices will spike, apps will start lagging, and complaints will arise.

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Developers are aware of how they’ve been repairing this over the past years. At the arrival of Fusaka, one major challenge was defeated.

Before the existence of Fusaka, there was a need for computers used for securing Ethereum to download complete data in a block for it to be authenticated as real.

It’s like trying to prove a book exists by reading every page from start to finish. After Fusaka, you only need to skim a handful of lines.

The certainty is the same—but the effort drops to a fraction of what it was. All of a sudden, Ethereum isn’t suffocating under data weight anymore. It has room to breathe. It can grow. It can support much heavier usage. For the first time, Ethereum scaling stops being a future promise and becomes something real.

Ethereum Is Transitioning to a More Interesting Phase: Fusaka

Users Will Soon Be Paying Cheaper Fees

Layer 2s are about to be getting more space on Ethereum. Layer 2s are similar to service providers who procure blockchain space on Ethereum as retailers and then allow users to use the blockchain at cheaper fees. However, now L2s are about to start getting more space, so they’ll be able to sell to users at even cheaper rates.

It’s unfolding at this very moment and is set to pick up pace through January.

Anyone operating apps on Arbitrum, Base, or Optimism will notice expenses falling dramatically—anywhere from 40% to 95%.

Lower Fees Won’t Affect Ethereum’s Value

When transactions are cheaper, it implies that a lesser amount of Ethereum is burned. This can be otherwise stated as reduced burning gives rise to more supply. And so, more supply results in price declines.

Layer 2 networks are now required to cover a minimum fee—no more “free passes” during quiet periods. This ensures ETH’s core system keeps running smoothly. Put simply, Ethereum becomes more affordable without compromising the foundation that gives ETH its worth.

The value generated by Layer 2s always flows back to the base layer. These three updates are what make Fusaka so impactful—and it looks like institutions are taking notice.

Source: create.vista.com

Organizations Have Just Given a Key Signal

This occurrence is what should draw a lot of attention. However, most people are not paying attention to some key happenings on the Chicago Mercantile Exchange. It happened that Ethereum’s futures volume exceeded that of Bitcoin’s.

Something like this hasn’t happened at any time in the past. Likewise, BlackRock recently filed for an Ethereum staking ETF.

The Sleeping Giant: Staking ETFs

This is the area Wall Street gets intuitively. Staking ETH generates a yield—usually around 3–4%. Think of it as owning digital real estate that pays rent. But for now, U.S. investors can’t buy a “Staked ETH ETF.”

When that changes, huge pools of capital—pension funds, endowments, and wealth managers—gain access to an asset that:

  • Can grow like tech stocks
  • Produces income like a bond
  • Complies with regulatory frameworks

BlackRock and Fidelity are already moving on this. If staking ETFs receive approval in 2026, Ethereum shifts from “internet magic money” to a legitimate financial instrument.

That’s when serious money will start flowing in.

ETH Has Been Quiet Until Now

Indeed, Ethereum has been relatively uneventful for nearly two years. Meanwhile, Bitcoin surged. Solana surged. Even memecoins saw action.

ETH? Stalled. Dropping. Crawling. Fragile.

Ethereum was termed old, dead, and slow because people got frustrated. As a result, it became another hated “blue chip” cryptocurrency.

Currently, ETH sits at a price level where it rebounded from in 2019 just before it ripped. Also, not long ago, whales procured Ethereum worth over $1.3 billion when the price of the token last plummeted.

Consequently, this hints at liquidity shifting. Boring often comes just before skepticism, which turns into adoption and then erupts into mania.

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