E is getting tough, $ETH at this moment! It has rebounded from around 2700 to over three thousand, with a weekly increase of more than 10%-12%. This surge is not an isolated event:
1. Fusaka upgrade activation significantly enhances network efficiency.
This is the next hard fork after Pectra. It introduces the PeerDAS mechanism, expanding the data blob capacity from 6 to 48 per block, with Layer 2 (L2) fees expected to decrease by 95%, and transaction throughput increasing by 8-20 times.
Lower gas fees (from $1-5 down to a few cents) and higher TPS (thousands of transactions per second) have attracted more DeFi, NFT, and stablecoin applications. After the upgrade, the ETH price immediately surged by 8.7%, returning to the $3,000 mark. The usage rates of L2s like Arbitrum and Optimism have reached record highs, processing over 60% of Ethereum transactions, further reducing the main chain load and burning ETH (deflationary effect).
2. Large-scale institutional funds are flowing in, with ETF and staking driving demand.
ETFs can stake ETH, yielding 4-5% APY, attracting TradFi funds (for the first time achieving institutional-level liquidity + yield). 29% of ETH (over 35 million coins) has been staked and locked, reducing circulating supply and creating a supply shock. Corporate treasuries (like Bit Digital) are also accumulating ETH, similar to MicroStrategy's BTC strategy.
3. Regulatory clarity + stablecoin/RWA ecosystem explosion.
Each stablecoin transaction burns ETH, driving deflation (Jevons Paradox: efficiency improvements actually increase demand). Ethereum is the preferred chain for RWA and DeFi (Ondo, Franklin Templeton have already tokenized stocks/bonds). Developer activity is leading, with 16,000 new developers expected by 2025.
$ETH is very likely to break through $4,000 this month. If $BTC holds at ninety-three thousand, the ETH/BTC ratio may break the 8-year trend line, triggering altcoin season.
