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News & Updates

Ethereum Set for Major Upgrade That Could Reshape Layer 2 Economics

November 24, 20252 Mins Read
Ethereum (ETH)

Bitwise Chief Investment Officer Matt Hougan says Ethereum could lead the next major crypto rally, citing an upcoming upgrade that he believes the market is overlooking. The Fusaka upgrade, scheduled for December 3, is expected to significantly increase Ethereum’s ability to capture revenue from Layer 2 networks.

Hougan says Fusaka could boost Ethereum’s revenue capture by five to ten times by introducing a minimum fee for Layer 2 data storage. He argues the upgrade marks a broader shift in the crypto sector, with major tokens moving toward stronger economic value for holders.

The Fusaka hard fork will activate on December 3 at 21:49:11 UTC on block 13,164,544. Developers approved the timeline after successful tests across multiple testnets. The upgrade introduces Peer Data Availability Sampling, which lets validators verify transaction data by checking small samples instead of downloading full datasets. This will lower bandwidth use and make Layer 2 rollups faster and cheaper.

Fusaka will also raise Ethereum’s block gas limit from 45 million to as high as 150 million, allowing blocks to handle more transactions and data-heavy applications.

Hougan says other tokens are also shifting toward clearer value models. Uniswap has proposed a fee switch that would burn around 16% of trading fees, potentially giving UNI direct economic benefits for the first time. The XRP community is exploring staking options that could similarly change how XRP holders earn value.

He argues these changes are driven by new regulatory pressure and will become more visible in 2026. Hougan described Fusaka as an “under-appreciated catalyst” and one reason Ethereum may outperform in the next market rebound.

Ethereum (ETH)
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Sazid Kabir

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