Why Ethereum might lead next rally: Matt Hougan points to a catalyst investors are ignoring
Bitwise CIO Matt Hougan believes Ethereum could lead the next crypto rally, pointing to an upgrade catalyst that investors are overlooking.
- Bitwise CIO Matt Hougan says Ethereum could lead next crypto rally with Fusaka upgrade.
- The December 3 Fusaka upgrade introduces minimum Layer 2 data fee for revenue capture.
- Hougan sees tokens shifting to value capture with Uniswap proposing fee switch model.
The Fusaka upgrade scheduled for December 3 may increase Ethereum’s revenue capture by 5 to 10 times through a minimum Layer 2 data fee.
Hougan argues the market is missing a broader trend: major tokens are quickly shifting toward better value capture. Uniswap ( UNI ) is moving toward a fee switch that would burn roughly 16% of trading fees, while the XRP ( XRP ) community explores staking options.
New regulations are pushing tokens away from vague governance models toward direct economic benefits for holders.
Fusaka upgrade targets Layer 2 efficiency
The Fusaka hard fork will activate on December 3, 2025, at 21:49:11 UTC on Ethereum ( ETH ) mainnet block 13,164,544. Core developers finalized the timeline after successful tests on Holesky, Sepolia, and Hoodi testnets.
Fusaka introduces Peer Data Availability Sampling (PeerDAS), which allows validators to confirm transaction data availability by sampling small pieces rather than downloading complete data blobs.
The technology makes Layer 2 rollup operations faster, cheaper, and more efficient while reducing bandwidth requirements.
The upgrade increases the block gas limit from 45 million to as high as 150 million. Each block will accommodate more transactions, smart contracts, and data-intensive applications.
Hougan wrote on X that Fusaka introduces “a minimum fee for recording data from Layer 2s” that could multiply revenue capture five to ten times.
“I suspect the market will start to orient around the positive impacts of Fusaka soon, particularly if it’s delivered Dec. 3 as expected,” he stated.
Tokens pivot from governance to economic value
Uniswap’s proposed fee switch would burn approximately 16% of trading fees if the vote passes. “I suspect this will push UNI toward being a top 10 token by market cap over time,” Hougan wrote.
The change would shift UNI from a pure governance token to one with direct economic benefits.
The XRP community is evaluating staking mechanisms that would change token holder economics. Hougan sees this as part of a pattern where tokens are implementing value capture features.
The Bitwise CIO predicts this shift will become apparent in 2026. “The level of value capture in digital assets is up only from here. I think people look at token value capture as static. It’s not,” he wrote.
Hougan described the Fusaka upgrade as “an under-appreciated catalyst and one reason ETH could lead the crypto rebound.”
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Uruguay’s Energy Challenges Disrupt Tether’s $500 Million Cryptocurrency Investment
- Tether abruptly ended its $500M Uruguay Bitcoin mining project due to unsustainable energy costs and uncompetitive tariffs. - The project, initially promoted as eco-friendly, faced $4.8M in unpaid bills and regulatory challenges. - The exit highlights risks for crypto miners in regions with volatile energy markets and uncertain policies. - Tether remains interested in Latin American green energy projects despite the Uruguay setback.

Solana News Update: Solana Experiences Sharp Price Drop, Yet Institutional Investments Reflect Confidence in Its Future
- A $239M whale transfer on Solana by Forward Industries to Fireblocks Custody highlights institutional confidence amid SOL's 53% price drop since January 2025. - Upexi's $23M private placement and 40% stock decline underscore crypto exposure risks as institutional Solana ETF inflows hit $420M in November. - CME's Dec 15 SOL/XRP futures launch and Fidelity's staking ETFs signal growing institutional adoption despite Solana's $77.4B market cap decline. - Whale activity and ETF trends suggest strategic long-

Bitcoin Updates Today: U.S. Bitcoin Holdings: Advancement or Threat in the International Crypto Competition?
- U.S. Rep. Warren Davidson proposes Bitcoin tax payments and a Strategic Bitcoin Reserve to modernize tax collection and hedge against inflation. - The UK tightens crypto tax rules, aligning with global efforts to regulate digital assets amid volatility, fraud, and tax evasion concerns. - Critics warn BTC's volatility risks reserve stability, while compliance costs and environmental impacts challenge adoption despite potential $230B reserve growth by 2030. - The bill mandates KYC data for transactions and
Harley-Davidson's 33 consecutive years of dividends demonstrate strong trust from investors
- Harley-Davidson declared a $0.18/share Q4 2025 dividend, extending its 33-year uninterrupted payout streak and signaling strong investor confidence in its financial stability. - Q3 2025 results showed EPS of $3.10 (double estimates) and $1.34B revenue (surpassing $1.01B forecasts), alongside strategic debt repurchases to optimize capital structure. - UPS grounded MD-11 fleets post-crash, delaying holiday operations, while CarMax and James Hardie faced lawsuits and stock declines amid leadership changes a

