Looking Ahead: What the Fusaka Update Means for Ethereum

Fusaka upgrade for Ethereum is dropping in two days... Here’s what we know. - Running nodes will be cheaper. - Gas fee cap rises to 60M per block. - Layer 2s will cough up more fees to the main chain, which should help burn more ETH. Thoughts? Will this actually move the price?

So wait, if layer 2s pay more fees, doesn’t that mean users are gonna pay more too? I heard the Fusaka upgrade should make layer 2 cheaper overall though, thanks to PeerDAS and higher block gas limits. Supposedly, it could cut layer 2 transaction fees by 40 to 60%.

Do you really think this will help ETH price? Aren't we already in a bear market? Everyone thought December would be bullish, but it seems like nothing's changing. Should we be hoping things turn around or just prep for long-term accumulation?

Not sure if it’ll boost ETH price, but usually, upgrades don’t drive prices up. Yeah, we might be in a bear market, but it’s still unclear. If Bitcoin keeps dropping, ETH will likely follow suit. Not the best time to buy ETH in my opinion, but I could be wrong.

Why not answer @Charles-Tim first? It would help others here get clarity. Honestly, I’m not that familiar with this Fusaka upgrade. But my buddy makes a good point. So, could you clarify that first? As for bear market or bull run, who can really say? Everyone’s waiting for the altcoin season.

Don’t mind my rhetorical question, it was just to make a point. Seriously, though, are people still waiting for altseason? I don’t think so. This used to be a hot topic, but it’s gone quiet. The last altseason was pretty underwhelming for many.

If that’s true, this upgrade might push more value and fees into ETH. We’ll see what happens.

He already knew the answer, he said it himself that layer 2 will bear the burden. It’s obvious. If ETH provides cheaper options, users won’t have much reason to stick with layer 2s anymore. The main reason they existed was to offer lower fees, and now ETH is fixing that. Layer 2 projects will have to step up.

Had no clue this upgrade was happening. I saw Vitalik tweet about L1, but maybe that’s related? This could lead L2s to create their own mainnets.

Nah, that’s not right. The increase in data capacity for blobs will let L2 post more bundled transactions to the mainnet, making L2 cheaper. If ETH gets cheaper and more people switch from other blockchains like SUI or Solana, we could see a price bump.

I want proof of work back.

A few days after Fusaka went live, and... nothing. Price is stuck, no FOMO from this update. Honestly, I’m starting to think no Ethereum update really impacts the price anymore. Inflation is still high, even with the increased burn rate from L2 fees. People are focusing more on adoption than tech.

Short-term? Who knows. The last Dencun upgrade promised cheaper L2 fees, yet prices stayed flat for ages. No momentum to keep prices up. Spot ETFs aren’t helping; institutional investors still prefer BTC. Plus, ETH’s PoS switch made it more centralized, which isn’t great. Competitors like Solana and BNB are making noise too.

This could bring in more investors looking to jump on this project. Investors usually lean towards projects that are favorable market-wise. Cheaper nodes will attract attention, especially if projects show what they can offer in the crypto space.