Cryptocurrency analysis firm Arkham has published a comprehensive assessment analyzing Ethereum’s current position, the scale of the debate, and the impact of the upcoming Fusaka update.
A decade later, Ethereum remains at the heart of the DeFi ecosystem and maintains a lead over rival layer 1 (L1) networks in terms of total value locked (TVL), according to the report. However, the biggest debates surrounding the future of the network center on key topics such as the validity of the “digital oil” thesis, the impact of Layer 2 growth on the accumulation of value on Ethereum, and long-term economic sustainability.
According to Arkham’s assessment, Ethereum’s price performance has lagged behind Bitcoin from 2024 to 2025, despite ETF inflows and increased adoption by institutional investors. Despite the growing preference for ETH among institutional investors, the most pressing question for investors is how much value is being accumulated on the mainnet and how much is left in layer 2 rollups. The growth of the L2 ecosystem will greatly improve Ethereum’s scalability, while also reinforcing the argument that value flows in L1 are weakening.
One of the most important developments in this context is the Fusaka update, which will arrive on December 3rd. Arkham said Fusaka will move Ethereum toward a more efficient, modular, rollup-centric architecture by increasing blob capacity, raising gas limits, and implementing PeerDAS and data sampling systems. These changes are expected to both increase data throughput and reduce L2 costs. Ethereum therefore aims to maintain its security and decentralized nature while supporting the growth of rollups.
Despite Ethereum’s strong DeFi dominance and institutional interest through 2025, structural questions remain. Whether ETH can sustain the “digital oil” narrative will depend on how cross-tier value sharing unfolds, the evolution of gas and data costs, the scope of the tokenized asset (DAT) economy, and the pace of integration of traditional financial institutions into the ecosystem. According to Arkham, the Fusaka update stands out as the most important step in Ethereum’s attempt to address these issues by expanding its technical capabilities.
*This is not investment advice.