In about a week, Ethereum will begin implementing a major update that brings important changes to the network, which could directly impact the user experience. According to one analyst, there’s a high probability this will be a positive catalyst for the price of Ethereum.
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Ethereum’s Year-End Update #
Next week is the big day. The Ethereum blockchain is scheduled for an update on December 3, known as the Fulu-Osaka, or simply Fusaka, upgrade. This update introduces significant changes to the platform, including how transactions are processed.
The upgrade is a hard fork—an irreversible change to a blockchain that permanently splits the network. Users on the Ethereum network will automatically transition to this new version.
What Does the Fusaka Update Mean for Ethereum? #
Fusaka brings several technical improvements to Ethereum that will be directly noticeable for network users. One of the most significant enhancements is scalability. The network states that many more transactions can be processed per block, and this capacity can even grow in the future without another update.
Transactions are processed on the blockchain in bundles, known as blobs. With the last update, Pectra, the maximum number of blobs per block was 6; this will increase to 14. This increase will be implemented gradually.
Additionally, transaction processing will become more efficient. Fusaka introduces the PeerDAS system, which essentially means that nodes will no longer need to download the entire blockchain’s data to process new information.
These improvements will be most apparent to users through lower transaction fees. The new Ethereum network will be able to handle more transactions, thereby reducing the cost for each one.
Analysts Expect Bullish Impact on ETH #
Analysts are speculating on the effect the update will have on the price of Ethereum, but the general sentiment appears to be bullish. According to analyst Evan Luthra, Ethereum is becoming “an incredibly fast modular beast,” and this will be beneficial for the price of the network’s native cryptocurrency.
Luthra points out to his followers that Ethereum has risen sharply after previous updates. For instance, the price surged 75% following the Berlin Upgrade in 2021 and a whopping 600% after the Beacon Chain launch in 2020. “Now, it’s Fusaka’s turn!” the analyst stated.