Asset Manager VanEck Explains How Ethereum’s Fusaka Upgrade Could Change the Game
According to asset management VanEck, Ethereum’s upcoming significant network update, Fusaka, has the potential to transform how users interact with the blockchain by reducing expenses and increasing efficiency.
VanEck’s research team stated in its September crypto market report that Fusaka, which is anticipated to launch in December, is made to address one of Ethereum’s main challenges: data availability for rollups, which are scaling solutions that group several transactions before settling them on Ethereum.
Why Fusaka matters
Peer Data Availability Sampling (PeerDAS) is the technique at the heart of the update. PeerDAS enables Ethereum validators to validate blocks by sampling smaller portions of transaction data rather of needing them to download all of the data.
This lowers bandwidth and storage requirements, which allows Ethereum’s “blob” capacity—the data slots utilized by rollups—to be securely increased without straining the network, VanEck added.
This is significant because demand is still growing and Ethereum developers have already increased blob limitations this year.
VanEck pointed out that over 60% of all rollup data supplied currently comes from Coinbase’s Base and Worldcoin’s World Chain, demonstrating how crucial L2s have become to the network’s expansion. Fusaka is anticipated to reduce rollup costs by increasing capacity, which should result in lower end-user transaction costs.
Implications for ETH
According to VanEck, the update highlights Ethereum’s move away from base layer fees as its primary driver.
Mainnet fee revenue has decreased as more activity shifts to rollups, but the company emphasized that this does not lessen ETH’s significance. Rather, Ethereum’s security function in resolving rollup transactions grows, solidifying its status as a monetary asset as opposed to merely a fee-paying one.
Additionally, VanEck analysts cautioned that if institutional actors, like as exchange-traded products and crypto treasury firms, continue to build up ETH positions to stake for return, unstaked ETH investors face dilution risk.
They contend that by reducing L2 costs and highlighting Ethereum’s pivotal role in a scaling ecosystem, Fusaka enhances Ethereum’s allure in that regard and is likely to draw in more institutional adoption.
Although there are still technical issues, VanEck came to the conclusion that Fusaka is a crucial development in Ethereum’s rollup-centric plan, having “significant implications” for both users and long-term holders.
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