Ethereum’s Fusaka Upgrade: Boosting Scalability and Attracting Institutional Investment

VanEck has announced that Ethereum’s December upgrade, known as the Fusaka upgrade, will significantly improve scalability by lessening the workload on validators. This upgrade is expected to lower the cost of utilizing Layer 2 blockchains, potentially enhancing Ethereum’s position as a central hub in this expanding ecosystem. This increased efficiency could attract more institutional investors, leading to greater adoption. However, some analysts warn that holders of unstaked ETH (ETH) face potential dilution risks as institutions like ETFs and crypto treasury companies continue accumulating ETH positions for profits by staking them.