The Fusaka upgrade is a significant event for Ethereum, and it’s happening on December 3, 2025. This upgrade is going to focus on scalability and security, introducing features like Peer Data Availability Sampling (PeerDAS) and increasing the gas limits. Basically, it means more transactions can get through, and users may pay less for them. By increasing the block gas limit from 45 million to 150 million, Fusaka is designed to help Ethereum handle more transactions in each block, which is a plus for the whole ecosystem.

Historically, upgrades like these have had effects on Layer 2 (L2) solutions and the market as a whole. With Fusaka, we might see a boost in Total Value Locked (TVL) across decentralized finance (DeFi) protocols. After extensive testing, the Ethereum Foundation has confirmed the deployment, and there are many eyes on how this will play out for developers and investors.

What Changes Will We See in Gas Fees After the Upgrade?

Expectations are that the Fusaka upgrade will significantly impact gas fees, especially for small fintech startups in Asia. With improved network scalability and increased transaction throughput, gas fees should go down, particularly on Layer 2 solutions. A new rule will cap the gas limit per transaction at about 16.78 million gas, which should help prevent any single large transaction from taking up all the block space, leading to fairer fees.

Also, the higher block gas limit could potentially double Ethereum’s transaction speed. This is essential for startups that rely on lower costs, as it might cut transaction expenses by up to 60% on Layer 2 platforms, so they can operate more affordably.

What Should Startups Expect in the DeFi Landscape?

For crypto-native businesses, the Fusaka upgrade is both a challenge and an opportunity. They need to be ready, which means updating their infrastructure to fit the new framework. They’ll need to ensure their smart contracts and nodes can work with the new data structures, like Verkle Trees, and that their systems can handle the increased block gas limit.

Startups should also invest in better analytics and monitoring tools for spotting suspicious trading patterns. Unfortunately, this upgrade doesn’t come with new safeguards against market manipulation, so that remains a concern. To succeed in this more scalable but intricate DeFi market, startups should focus on enhancing their operational capabilities and compliance measures.

What Regulatory Challenges Could the Upgrade Bring?

The Fusaka upgrade could pose regulatory challenges for crypto-friendly SMEs, especially in Europe. With regulations constantly changing, navigating compliance will become even trickier. They’ll have to deal with requirements like the Markets in Crypto-Assets Regulation (MiCA) and anti-money laundering rules, all of which could differ from country to country.

Startups might face operational challenges in implementing due diligence and monitoring to meet EU AML standards. The complexities of tax compliance related to crypto payroll and payments could also require professional advice. As Fusaka boosts Ethereum’s scalability, startups will need to invest in compliance systems and legal expertise to manage these risks.

Will This Upgrade Widen the Gap in the Crypto Market?

While the Fusaka upgrade aims to make Ethereum more efficient, it may also create disparities between established DeFi protocols and newcomers. The technical demands of the upgrade might favor well-resourced players, leaving new entrants at a disadvantage.

The need for node operators to update their software and maintain compatible infrastructure could restrict participation for smaller or newer players. Established protocols might take advantage of Fusaka’s improvements, potentially widening the competitive gap with new entrants.

Additionally, the focus on scalability might lead to centralization risks, where only larger players can afford to run full nodes effectively. This could leave smaller startups marginalized, so they’ll need to collaborate with others and engage in governance to seek transparency and fairness in the ecosystem.

Summary

In summary, the Fusaka upgrade is a pivotal event for Ethereum that promises to enhance scalability and efficiency. However, it also introduces challenges for startups, particularly regarding compliance and market dynamics. With lower gas fees and increased transaction throughput expected, startups must be prepared to adapt to the changing landscape by upgrading their infrastructure and enhancing their monitoring capabilities. By proactively addressing these challenges, crypto-native businesses can better position themselves for success in a rapidly evolving environment.