Ethereum developers completed the second and final "data block parameter adjustment only" fork of the Fusaka upgrade cycle on January 8, 2026.
This upgrade increased the target number of blobs per block from 10 to 14, and raised the maximum from 15 to 21. As of January 8, Ethereum was trading at $3,126.13 on Gate. With the completion of this technical upgrade, the foundation of the entire Ethereum ecosystem is undergoing a fundamental transformation.
01 Upgrade Highlights
On January 8, 2026, the Ethereum network executed a pivotal upgrade. This BPO fork marked the final step of the Fusaka upgrade cycle, focusing exclusively on blob parameter adjustments.
The BPO mechanism allows Ethereum to independently and flexibly adjust key network parameters such as blobs without waiting for major annual upgrades. This modular approach enables Ethereum to more effectively test and expand network capacity.
The concept of blobs was first introduced in the Dencun upgrade in 2024, providing a low-cost data storage solution specifically for Layer 2 rollups. This type of data remains on the Ethereum mainnet for about 18 days before being automatically cleared, ensuring data availability while preventing state bloat.
02 Technical Breakthroughs
While the core change in this BPO fork appears straightforward—raising the blob target from 10 to 14 and the maximum from 15 to 21—the impact is far-reaching.
This adjustment gives Layer 2 networks more data space, helping to keep rollup transaction costs stable as on-chain activity grows.
The real technological revolution lies in PeerDAS, introduced with the Fusaka upgrade. This innovation fundamentally changes how Ethereum handles data availability.
Traditionally, every validator node had to download the entire blob data, resulting in high hardware requirements and limiting network scalability. PeerDAS allows validator nodes to confirm data integrity and availability by randomly sampling only a small subset of data fragments.
03 Market Impact
With the increased blob limit per block, Ethereum has opened up broader data capacity for Layer 2 networks. This change is directly translating into lower transaction costs and a more stable fee environment.
Andrew Gross, Head of Technical Evangelism at open-source blockchain explorer Blockscout, noted that this upgrade shifts Ethereum’s scalability from "process-driven" to "parameter-driven."
Currently, blob storage capacity is far from saturated, and the network can boost throughput simply by adjusting parameters. This shift leads to more stable Layer 2 scaling network fees, expanded data layer capacity, and enhanced dynamic scaling for the entire system.
Christine Erispe, a developer evangelist for the Ethereum community in the Philippines, further explained that this means "the number of Layer 2 scaling network transaction batches that can be processed per unit time will increase, or the marginal cost of data blocks will decrease if batch sizes remain unchanged."
04 Layer 2 Ecosystem Transformation
Leading Layer 2 networks like Base and Arbitrum have seen gas fees continue to drop, with some transaction costs falling to as little as $0.00001—virtually free. This isn’t a short-term subsidy, but a long-term trend driven by fundamental technical upgrades.
When the cost for Layer 2s to store data on Ethereum’s mainnet becomes negligible, they can pass even more savings on to users.
This is precisely the long-term strategy of Vitalik Buterin and the Ethereum Foundation: positioning Ethereum’s mainnet as the "ultimate settlement layer" for Layer 2s. Much like the TCP/IP protocol of the internet, users don’t interact with it directly for chatting or streaming, but every application depends on it.
Ethereum’s mainnet will evolve in the same way—regular users will interact through Layer 2s, while all transactions ultimately settle on the mainnet, benefiting from its security and decentralization.
05 Future Roadmap
Although the Fusaka upgrade is complete, Ethereum’s development roadmap continues to advance. The Glamsterdam upgrade is slated for 2026, followed by Hegota.
Glamsterdam is expected to launch in the first half of 2026, with Hegota planned for the second half. This accelerated protocol upgrade cadence marks a significant shift in Ethereum’s development approach.
Core contributors now favor more frequent network changes rather than bundling major upgrades into a single annual release. Key features of Glamsterdam will include block-level access lists and built-in proposer-builder separation.
For the Hegota upgrade, early discussions are focused on Verkle trees—a new data structure designed to help Ethereum nodes store and verify large volumes of data more efficiently.
06 Gate’s Perspective: Technical Upgrades and Market Opportunities
As a leading crypto asset trading platform, Gate closely monitors technological developments in major blockchains like Ethereum. The completion of the Fusaka upgrade—especially the increased blob capacity and the maturity of PeerDAS technology—has injected new vitality into the Ethereum ecosystem.
As of January 8, 2026, ETH was trading at $3,126.13 on Gate. Looking at recent price trends, ETH hit a low of $2,800.19 in early December 2025, then saw a significant single-day surge to $3,191.57 on December 3, when the Fusaka upgrade went live on mainnet.
Recent Ethereum price and trading volume data:
| Date | Closing Price (USD) | Daily Trading Volume (USD) |
|---|---|---|
| 2026-01-07 | 3,226.13 | 27,211,995,956 |
| 2026-01-03 | 3,125.92 | 11,460,707,919 |
| 2025-12-31 | 2,967.04 | 16,451,891,101 |
| 2025-12-03 | 3,191.57 | 29,949,301,036 |
For users trading ETH and related Layer 2 tokens on Gate, understanding the long-term significance of these technical upgrades is essential. Vitalik Buterin recently pointed out that with zkEVM reaching the alpha stage and PeerDAS going live on mainnet, Ethereum is evolving into a more robust decentralized network.
Investors should watch for projects within the Layer 2 ecosystem that can fully leverage Ethereum’s data availability improvements, as well as innovative solutions focused on reducing user transaction costs and enhancing accessibility.
Looking Ahead
With the final step of the Fusaka upgrade complete, Ethereum’s data superhighway is now fully operational. The combination of increased blob capacity and PeerDAS technology enables the mainnet to offer nearly unlimited, ultra-low-cost data availability for Layer 2s.
The effects of this "data revolution" are already emerging. Transaction costs on leading Layer 2s like Base and Arbitrum have dropped to virtually negligible levels, while zero-knowledge Layer 2 networks such as zkSync Era, StarkNet, and Scroll are poised to benefit from enhanced privacy protection.
Ethereum is quietly transforming into the ultimate settlement layer for global decentralized applications, with users barely noticing the underlying technical complexity. Perhaps this is the hallmark of great engineering—"benefiting without awareness, but hard to live without."
