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Markets turned decisively towards risk today, with cryptocurrencies leading the move while traditional assets remained silent. Fusaka’s upgrade for Ethereum has arrived with PeerDAS, BPO hard forks, and the undiscussed EIP-7918, which together may eventually restore deflationary pressure on ETH. On the thematic front, Sui makes a strong, comprehensive push toward robotics, positioning on-chain coordination, leveling, and telemetry as primary alternatives for a coming wave of real-world machines.
Indicators
Markets have moved strongly towards risk, with cryptocurrencies broadly outperforming traditional assets. BTC (+5.8%) remained in the middle of the pack, while stocks were muted. The S&P 500 (+0.3%) and Nasdaq 100 (+0.9%) barely moved. Gold fell (-0.3%), and cryptocurrency miners were the most visible to the downside (-8.7%), indicating profit-taking and sensitivity to Bitcoin consolidation.
The breadth of the cryptocurrency sector has been exceptionally strong. Oracles, lending and the broader Ethereum ecosystem led the board, signaling a clear return to core infrastructure and high usage protocols. DeFi, Modular, the Solana ecosystem, and perps followed with similarly strong showings, indicating a broad appetite for beta across liquid alternative sectors. At the bottom of the stack, L2, AI triggers, launchpads, and gaming tokens rose in levels, while speculative areas like memes lagged behind. The only obvious pockets of weakness were cryptocurrency stocks and miners in particular, which saw significant declines.
The move is consistent with improving sentiment as overall headwinds ease. Returns have stabilized, liquidity indicators have stabilized, and positioning metrics indicate that investors are adding risk after a short period of time. Strong recoveries in infrastructure sectors indicate expectations of increased onchain activity and potential catalysts from upcoming protocol upgrades. Looking ahead, attention turns to macro prints later this week, which may test the mettle of this risk-on tone. Volatility remains compressed, but as crypto sector dispersion widens, traders should expect sharper cycles as narratives develop.
Market update
Today is Fusaka Day in the land of Ethereum, the second upgrade this year ( Pectra solid fork It was in May). It is not unusual for Ethereum to get two upgrades in one year, and that is because Fusaka is more than half an upgrade away. More than a dozen EIPs were subsequently removed EOF is stopped In April.
Of the remaining 12 EIPs, PeerDAS is the most important, according to Gabriele Trentinalia, protocol engineer at Consensys.
“During the initial development of the Fusaka upgrade, any feature that had a risk of fork delay, such as those that required more research or were of high complexity, was deprioritized and removed from scope,” Trentinalia told Blockworks.
PeerDAS offers Sampling data availabilitywhich allows validators to share the pip load, effectively allowing pips per block to increase. There’s one overlooked upgrade, but first, some background information:
Blobs have failed to meet their target of six per block, and just when it looked like they were about to do so, Ethereum is looking to raise the target again. Technically, Fusaka will not raise the point goal, but will submit it instead Point parameter only (BPO) hard forks. This creates a separate, easier process for adjusting large binary data storage parameters. So instead of waiting for a big upgrade, Ethereum can make smaller, more frequent adjustments to pip capacity.
The larger point still stands: with supply exceeding demand, the price of pip gas has become largely unimportant (except for a few fluctuations here and there when the pip price reached 1 Gigawi).
After Pectra, between June and October, Ethereum generated around $900 in pip fees. A short rally in November brought that amount to roughly $23,000. This is still immaterial, but it highlights the difference of an order of magnitude when pips actually have a market.
This is why EIP-7918 It needs more attention. It addresses the point fee market problem by offering a reserve price tied to execution costs (a floor price of sorts). When level 2 execution costs dominate pip costs, this prevents the pip fee market from becoming inefficient at 1 wii. For example, as shown below, if EIP-7918 was filed on June 1, 2025, the burn point fee would be approximately 8 times more. Upgrading is not just a fallback pricing model, it also offers more price stability and predictability, avoiding spikes in fees when the block market becomes inelastic.
Combined with PeerDAS and BPO, this suggests that as Ethereum expands L2 capacity, pip fees should rise as well (historically, this relationship has been quite inverse). For ETH holders, this, combined with L1 scaling, could push the supply of ETH back into a contraction phase.
Updated December 4, 2025 at 2:12 AM ET: Clear comment
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