Ethereum crossed the $3,000 threshold following the December 3 launch of its Fusaka upgrade, a major network enhancement that introduces data sampling technology and sets the stage for dramatically expanded layer-2 throughput.
The cryptocurrency climbed above $3,000 on December 2, capping a 10% surge in 24 hours ahead of the upgrade activation at 21:49 UTC on December 3.
Fusaka marks Ethereum's second major hard fork of 2025 after the Pectra upgrade in May.
The network enhancement introduces PeerDAS, a data sampling protocol that allows validators to verify information without downloading complete datasets. This architectural shift reduces bandwidth requirements by up to 85% while enabling potential 8x increases in data capacity.
What Happened
Ethereum activated Fusaka at epoch 411,392 on December 3, deploying 12 Ethereum Improvement Proposals focused on scaling infrastructure rather than user-facing features. The upgrade's centerpiece is EIP-7594, which implements PeerDAS technology that fundamentally changes how nodes handle blob data from layer-2 networks.
Under the new system, validators sample random portions of data rather than storing complete payloads. This approach maintains security guarantees while slashing resource requirements for node operators.
The upgrade also raises the default block gas limit to 60 million from 45 million, expanding capacity for standard transactions on the base layer. EIP-7825 simultaneously caps individual transactions at 16.7 million gas to prevent denial-of-service attacks.
Two Blob Parameter Only forks are scheduled to increase data capacity incrementally. BPO1 on December 9 raises blob targets from 6 to 10 per block and maximums from 9 to 15. BPO2 on January 7, 2026, pushes targets to 14 and maximums to 21.
These configuration-only adjustments enable rapid scaling without requiring full network hard forks. The phased approach allows developers to monitor performance between capacity increases.
EIP-7918 ties minimum blob fees to execution gas costs, preventing blob prices from collapsing to near-zero when base layer gas remains expensive. The mechanism creates more predictable cost structures for layer-2 operators.
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Why It Matters
Layer-2 networks like Arbitrum, Optimism, and Base currently process over 530 million transactions monthly with combined total value locked exceeding $39 billion. These rollups rely on Ethereum for security and data availability, posting transaction batches in blob format to the base layer.
Current blob capacity frequently hits the 9-per-block ceiling, pushing rollup fees higher and creating pressure for alternative data availability solutions. Fusaka addresses this bottleneck by enabling substantial throughput increases while maintaining decentralization.
Analysts estimate the upgrades could reduce layer-2 data fees by 40-60% over time. Lower costs expand design space for applications in decentralized finance, gaming, and social platforms that require high transaction volumes.
The upgrade represents a shift toward modular scaling where execution happens on layer-2 networks while Ethereum provides settlement and security. This architecture aims to support billions of users without forcing home validators onto datacenter-grade infrastructure.
PeerDAS also enables future blob capacity expansions. Ethereum developers are planning additional BPO forks after analyzing data from the initial increases, with long-term targets reaching 128 blobs per block to support ecosystem growth.
The price action coincided with broader cryptocurrency market strength. Bitcoin trades above $96,000 while major altcoins including XRP, BNB, and Solana posted double-digit gains in the 24-hour period.
Ethereum futures open interest rebuilt to $3.02 billion as of December 2, signaling traders are returning to leveraged positions. Spot trading volume jumped 40% to $26.6 billion, outpacing the seven-day average.
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