Ethereum’s Fusaka Upgrade Reaches Final Testnet Before Mainnet Launch

Ethereum’s Fusaka upgrade has reached its final testnet, Hoodi, an important step before the mainnet launch in December. This step brings Ethereum closer to improvements in throughput and Layer-2 performance.

However, the ETH price response has been muted. It dropped around 3% to trade near $3,992, impacted by broader market volatility. The Federal Open Market Committee’s interest rate announcement at the same time added to the cautious sentiment.

What Does The Hoodi Launch Mean?

The Hoodi testnet is the final stage before the Fusaka upgrade. Earlier testnets, Sepolia and Holesky, were successfully completed. Sepolia was upgraded on October 14, and Holesky ran earlier in the month before being retired. These testnets helped developers test new protocols in a controlled setting, making sure the mainnet runs smoothly.

Ethereum’s careful, step-by-step upgrade process continues with Fusaka. It builds on improvements from the Pectra upgrade in May, which included easier validator operations, account abstraction with EIP-7702, and a small increase in blob capacity. These changes lowered Layer-2 transaction costs and improved network efficiency.

Blobs, Ethereum’s method for handling large data objects, are central to Layer-2 operations. They let rollups post data more efficiently, increasing throughput and supporting decentralization. Fusaka will expand this capacity further, allowing more data and lower fees.

What Will the Fusaka Upgrade Bring?

The Fusaka upgrade brings technical improvements to make Ethereum more efficient. It includes Peer Data Availability Sampling (EIP-7594) for easier access to Layer-2 data and Verkle Trees, which compress state proofs to help nodes handle data better. The block gas limit will also be increased, allowing smoother transactions.

Fusaka will be rolled out in three stages. The mainnet launch on December 3 introduces the core updates. The first Blob Parameter Only fork is expected around December 17, increasing blobs per block. A second BPO fork is planned for January 7, 2026, to expand capacity further. Together, these updates are expected to more than double Ethereum’s data handling, benefiting Layer-2 apps and developers.

The gradual rollout lets Ethereum track the effect of each change and adjust as needed. These updates are more than small tweaks; they bring real improvements for users and developers.

Market Implications

Despite positive technical signals, ETH price action has remained cautious. The modest drop to $3,992 during the Hoodi testnet launch highlights how broader economic factors, particularly the FOMC’s interest rate decisions, can take precedence over network developments in the short term.

Still, the long-term perspective looks promising. Fusaka’s improvements in blob capacity and the introduction of PeerDAS and Verkle Trees support Layer-2 scaling. This could make the network more efficient, cheaper to use, and better for DeFi, NFTs, and other applications.

An Outlook for Fusaka Upgrade

With Hoodi now successfully deployed, Ethereum is preparing for the mainnet Fusaka rollout in December. The upgrade aims to enhance throughput and data availability while maintaining network stability. Overall, these developments point to a positive outlook for Ethereum’s ecosystem.