- The Fusaka launch brought significant gains to Ethereum tokens and related ETFs.
- Tom Lee’s BitMine reportedly capitalized on the hype, buying over $91 million worth of ETH before the upgrade’s mainnet rollout.
Ethereum’s (ETH) Fusaka upgrade finally goes live on Wednesday. Many, including the chain’s founder, Vitalik Buterin, consider the hard fork a very important milestone for the blockchain.
The event led to significant gains in ETH and Ethereum ETFs. It also triggered another huge token acquisition from BitMine.
Key Features of the Ethereum Fusaka Upgrade
The update addresses several network issues, such as congestion, high transaction fees, and a deteriorating user experience. It complements the efficiency, scalability, security, and tokenization capability boosts the network rolled out post-Merge event through Pectra, Dencun, and Shanghai upgrades.
Fusaka introduces peer data availability sampling, or PeerDAS, which increases the amount of data that layer 2 (L2) chains can send to the Ethereum network. The initial phase of the upgrade increases its capacity by eightfold, from a maximum of 9 blobs per block. An incremental series of minor upgrades starting next week will gradually accelerate secondary-layer scaling and user costs.
PeerDAS will mainly benefit L2s, but Buterin claimed that the advantages will eventually scale to the Ethereum mainnet. Alongside this are other benefits for users, such as resilience against denial-of-service (DDoS) attacks, a tweak to the gas cap per transaction, expanded interoperability for decentralized applications (dApps), and new tools for node operators.
Ethereum Performance
The mainnet launch of the Fusaka upgrade sustained Ether’s rally from its four-month low at around $2,600 in November. In the last 24 hours heading to Thursday morning (UTC), ETH resumed its climb from a $3,034.76 low to a $3,238.56 high.
On the other hand, spot Ethereum ETFs in the US experienced significant gains, with Wednesday’s close logging $140.2 million in net inflows. Besides Ether ETFs, only XRP ETFs displayed positive flows during the same period, at $50.27 million, while Bitcoin (BTC) and Solana (SOL) ETFs recorded net inflows of -$14.9 million and -$32.19 million, respectively.
BitMine Loads Up ETH Treasury
Fresh from its $375.18 million ETH purchase last week, BitMine reportedly topped up its digital asset treasury (DAT) with another Ether acquisition of at least $91.16 million.
According to the data Lookonchain retrieved from Arkham Intel, a hot wallet on BitGo linked to Fundstrat founder and BitMine chairman Tom Lee received around 18,345 ETH from Kraken before the Fusaka activation. If the news checks out, this significantly raises BitMine’s stash to 3,744,844 ETH.
At ETH’s fluctuations in the last 24 hours, BitMine’s Ethereum holdings should now be between $11.36 billion and $12.13 billion.
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