Ethereum’s blockchain is set to experience another major update called ‘Pectra’ in the first quarter of 2025. Developers have been working on this update for a long time, adding some EIPs (Ethereum Improvement Proposals) and removing others. Following the Pectra update, the ‘Fusaka’ update will come into play, offering anticipated improvements to Ethereum and its layer 2 solutions to maintain its position in the DeFi ecosystem. Despite uncertainties around the exact scope and launch time of the Fusaka update, developers will focus on 12 code changes in the core EIPs from Pectra for Fusaka. One of the planned Ethereum improvement proposals for Fusaka is EIP 7549, enhancing network scalability through layer 2 rollups. Other important EIPs accompanying Fusaka include EIP 3670 for ‘code verification’ and EIP 4750 for ‘function enhancements.’ Fusaka may encompass more than 12 EIPs, a decision to be made by the core developers during the planning of this update. Amidst the growing competition in the vast DeFi ecosystem, Ethereum’s layer 2 solutions remain among the biggest winners. These major updates could kickstart a new uptrend for Ethereum’s price. In fact, the more updates there are, the more new features will be added to the network, potentially increasing Ethereum’s adoption and driving its price to new highs. This process may lead to increased demand for ETH and drive its price to new highs.
