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Ethereum News Update: Ethereum’s Efforts to Scale Challenge Security Boundaries Amid Competition with Other Platforms

Ethereum News Update: Ethereum’s Efforts to Scale Challenge Security Boundaries Amid Competition with Other Platforms

Bitget-RWA2025/12/02 05:20
By:Bitget-RWA

- Ethereum's Fusaka upgrade (Dec 3) aims to triple gas limit via Hoodi testnet, boosting transaction throughput as core developers shift from past skepticism. - Gas limit expansion addresses network congestion and fees, with experts like Anthony Sassano suggesting further scalability optimizations could follow. - Ethereum ETFs saw $312.6M inflows amid market volatility, while Nasdaq seeks to expand Bitcoin ETF options trading, signaling growing institutional crypto adoption. - Network faces balancing scala

Ethereum Prepares for Major Scalability Upgrade

Anticipation is building within the blockchain community as Ethereum gears up for the Fusaka upgrade, scheduled for December 3. Having entered the Hoodi testnet on October 29, this update is designed to triple the network’s gas limit. Core developer Toni Wahrstätter has described this move as just the start of a larger initiative to boost transaction processing capabilities. This marks a notable shift in developer sentiment, as increasing the gas limit is now seen as essential for supporting the expanding use of decentralized applications and smart contracts.

Addressing Network Congestion and Costs

The planned gas limit increase is part of Ethereum’s broader strategy to alleviate network congestion and reduce transaction fees—key concerns for both developers and users. Crypto analyst Anthony Sassano has suggested that tripling the gas limit is merely a baseline, hinting at the possibility of even greater enhancements in the future. As Ethereum continues to navigate the delicate balance between scalability and security, the Fusaka upgrade is expected to significantly boost the network’s transaction capacity, potentially minimizing the fee spikes that occur during periods of heavy usage.

Market Trends and Institutional Interest

Ethereum’s advancements are unfolding against a backdrop of shifting market dynamics. Bitcoin spot ETFs have recently reversed a four-week outflow trend, while Ethereum ETFs also saw a resurgence, recording $312.6 million in net inflows over the past week. This uptick signals growing institutional engagement with digital assets, despite ongoing market fluctuations. Meanwhile, the recent release of 1.75 million HYPE tokens by Hyperliquid, valued at $60.4 million, raised concerns about increased selling pressure and led to a 4.6% price decline. BitMEX’s Arthur Hayes and other analysts believe such events are often anticipated and factored into market pricing, a consideration that could become relevant for Ethereum if similar token release mechanisms are adopted.

Broader Impacts and Competitive Landscape

Elsewhere, Nasdaq’s efforts to expand trading limits for BlackRock’s IBIT options—raising the cap from 250,000 to 1 million contracts—demonstrate the growing sophistication of Bitcoin-related financial products. This adjustment aims to bring IBIT in line with leading ETFs like EEM and FXI, reflecting confidence in Bitcoin’s liquidity and institutional acceptance. Such developments may also enhance Ethereum’s standing as the overall crypto market gains greater legitimacy, as noted by market analysts.

Looking Ahead: Ethereum’s Path to Scalability

As the Fusaka upgrade approaches, Ethereum’s challenge will be to scale effectively while preserving its decentralized nature. The upcoming changes are expected to strengthen Ethereum’s position against other Layer 1 blockchains such as Solana and Avalanche, both of which emphasize high throughput. Nevertheless, ensuring robust security and managing energy demands will require ongoing attention. For now, the blockchain community is closely monitoring these developments, with many viewing Fusaka as a crucial milestone in Ethereum’s evolution toward a more scalable and enterprise-ready platform.

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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.

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