Finance

Ethereum’s Fusaka Upgrade: Will it Slash Gas Fees and Reshape the DeFi Landscape?

Ethereum‘s “Fusaka” upgrade on Dec 3, 2025, aims to boost scalability, potentially lowering gas fees.

byAndres Castro

October 31, 2025, 9:40 AM

A physical Ethereum coin standing upright against a dark background with a sharply rising orange graph.

A physical Ethereum coin in focus with a dramatic, rising orange financial chart behind it. By MDL.

Executive Summary

The Ethereum network will undergo the “Fusaka” upgrade on December 3, 2025, introducing Peer Data Availability Sampling (PeerDAS) and significantly increasing gas limits to enhance scalability and security.

The Fusaka upgrade is expected to dramatically increase the block gas limit from 45 million to 150 million and implement a per-transaction gas cap, aiming to reduce gas fees by up to 60% on Layer 2 platforms and boost transaction throughput.

The upgrade presents significant challenges for startups and SMEs, requiring infrastructure updates, navigating increased regulatory complexities (e.g., MiCA, AML in Europe), and potentially leading to market disparities and centralization risks favoring larger, well-resourced entities.

The Story So Far

The Ethereum network is implementing the “Fusaka” upgrade to significantly enhance its scalability and security by increasing block gas limits and introducing new transaction gas caps, aiming to improve transaction throughput and reduce user fees, particularly benefiting Layer 2 solutions, while also posing challenges for crypto-native businesses in terms of infrastructure updates, regulatory compliance, and potential market disparities.

Why This Matters

The upcoming Ethereum “Fusaka” upgrade is set to significantly enhance network scalability and security by increasing gas limits and introducing PeerDAS, which is expected to lower transaction fees by up to 60% on Layer 2 solutions, particularly benefiting startups. However, this advancement also presents operational challenges for crypto-native businesses, requiring infrastructure updates and increased investment in compliance systems due to evolving regulatory complexities. Furthermore, the technical demands of the upgrade could exacerbate market disparities, potentially favoring established protocols and introducing centralization risks within the ecosystem.

Who Thinks What?

The Ethereum Foundation views the Fusaka upgrade as a pivotal update designed to bolster network scalability and security by introducing features like PeerDAS and dramatically increasing the network’s gas limits, expecting higher transaction throughput and potentially lower user fees.

Small fintech startups and crypto-native businesses anticipate significant benefits from the Fusaka upgrade’s reduced gas fees—up to 60% on Layer 2—and increased transaction speeds, yet they also face challenges in updating their infrastructure, navigating new regulatory complexities like MiCA and AML, and managing potential market disparities.

Established DeFi protocols and larger entities may find the Fusaka upgrade’s technical demands advantageous, potentially widening their competitive edge and introducing centralization risks if only well-resourced players can afford to run full nodes effectively.

The Ethereum network is set to undergo a significant upgrade dubbed “Fusaka” on December 3, 2025, aiming to bolster scalability and security. This pivotal update will introduce features such as Peer Data Availability Sampling (PeerDAS) and dramatically increase the network’s gas limits, which is expected to facilitate higher transaction throughput and potentially lower user fees. The Ethereum Foundation has confirmed the deployment following extensive testing, with the crypto community keenly observing its implications for developers and investors.

Impact on Gas Fees

The Fusaka upgrade is anticipated to profoundly affect gas fees, particularly benefiting small fintech startups in Asia. By increasing the block gas limit from 45 million to 150 million, Ethereum aims to process more transactions per block. This improvement in network scalability and transaction throughput should lead to reduced gas fees, especially on Layer 2 solutions.

A new rule capping the gas limit per transaction at approximately 16.78 million gas will also be implemented. This measure is designed to prevent single large transactions from monopolizing block space, promoting fairer fee distribution. The higher block gas limit could potentially double Ethereum’s transaction speed, offering significant cost savings—up to 60% on Layer 2 platforms—for startups reliant on lower operational expenses.

Startup Expectations in the DeFi Landscape

For crypto-native businesses, the Fusaka upgrade presents both opportunities and challenges. Startups will need to update their infrastructure, ensuring smart contracts and nodes are compatible with new data structures like Verkle Trees and can manage the increased block gas limit. The analysis suggests that while scalability improves, no new safeguards against market manipulation are included, necessitating increased investment in analytics and monitoring tools to detect suspicious trading patterns.

Regulatory Challenges

The upgrade could introduce new regulatory complexities for crypto-friendly small and medium-sized enterprises (SMEs), particularly within Europe. With evolving regulations such as the Markets in Crypto-Assets Regulation (MiCA) and varying anti-money laundering (AML) rules across countries, compliance is expected to become more intricate. Startups may face operational hurdles in implementing due diligence and monitoring to meet EU AML standards, and tax compliance for crypto payroll and payments could require specialized advice. As Fusaka enhances Ethereum’s capabilities, businesses will need to invest in robust compliance systems and legal expertise to navigate these risks.

Potential for Market Disparities

While Fusaka aims to boost Ethereum’s efficiency, the article notes a potential for disparities to emerge between established DeFi protocols and newer entrants. The technical demands of the upgrade, including the need for node operators to update software and maintain compatible infrastructure, might favor well-resourced players. This could potentially restrict participation for smaller or newer entities, allowing established protocols to widen their competitive advantage.

Furthermore, the focus on scalability might introduce centralization risks, as only larger entities may be able to afford the resources required to run full nodes effectively. To mitigate marginalization, smaller startups are encouraged to foster collaboration and actively engage in governance to advocate for transparency and fairness within the ecosystem.

Looking Ahead

The Fusaka upgrade represents a critical juncture for Ethereum, promising enhanced scalability and efficiency, alongside the potential for lower transaction fees. However, it also brings forth significant challenges for startups, particularly concerning regulatory compliance and the dynamics of market competition. Crypto-native businesses must proactively adapt by upgrading their infrastructure and strengthening their monitoring capabilities to successfully navigate this rapidly evolving environment.