The Ethereum 
$3,491 protocol is poised to enter a new phase in the first quarter of 2025 with the Pectra upgrade, which developers have been diligently working on. This upgrade aims to enhance the technical infrastructure of the Ethereum ecosystem. However, developers have also begun preparations for the next step following Pectra, known as the Fusaka upgrade.
What Innovations Does Fusaka Bring?
Ethereum developers plan to incorporate several Improvement Proposals (EIPs) that were intended for Pectra but were canceled for various reasons into Fusaka. Christine Kim, Vice President of Galaxy Research, noted that the exact scope of the Fusaka upgrade is not yet defined, leading to uncertainty in its launch schedule.
One of the key proposals under Fusaka is EIP 7549, which aims to enhance the scalability of the main chain through Layer-2 rollup technologies. This proposal intends to increase blob capacity without adding computational load to Ethereum nodes. Kim mentioned that developers would focus on 12 major code changes in Fusaka, particularly involving EOF code changes and PeerDAS submodules.
Potential Effects on Ethereum Price
The market impact of Ethereum upgrades is always eagerly anticipated. The Pectra and Fusaka upgrades could bolster Ethereum’s value through enhanced functionality and increased adoption. However, in recent weeks, the ETH price has notably dropped from $4,000 to $3,479.25. The price did show a modest increase of 1.09% in the last 24 hours.
Moreover, Ethereum developers are continuing their work on the Beam Chain consensus layer, though there has been recent silence regarding this upgrade. Successful completion of Fusaka is expected to further strengthen Ethereum’s market position. These steps are crucial for maintaining Ethereum’s competitiveness within the cryptocurrency ecosystem.
