The Ethereum network has reached a remarkable milestone by achieving a new record of 32,950 transactions per second (TPS). This achievement surpasses the previous week”s record of 31,000 TPS, showcasing the growing efficiency of the network. This surge in transaction capacity comes just ahead of the highly anticipated Fusaka upgrade, which is set to enhance scalability even further.
One of the key contributors to this spike in TPS is Lighter, a perpetual exchange built on a zero-knowledge rollup. This innovative technology utilizes cryptographic proofs to facilitate a large volume of transactions at significantly lower costs. The adoption of zero-knowledge systems has accelerated in 2025, with Ethereum co-founder Vitalik Buterin frequently advocating for their advantages. Lighter consistently processes thousands of TPS, while other Layer 2 solutions, such as Base, generally manage between 100 and 300 TPS. This highlights the critical role that Layer 2 networks play in the long-term scaling strategy for Ethereum.
The Fusaka upgrade, which goes live today, integrates enhancements from previous upgrades named Osaka, Fulu, and PeerDAS. One of its primary objectives is to address a significant economic challenge faced by Ethereum. Historically, Layer 2 networks have relied on Ethereum for security but contributed very minimal fees back to the main blockchain, leading to a low rate of ETH burn. The Fusaka upgrade is set to implement new rules that will ensure every transaction processed on Layer 2 contributes to the burn of ETH, potentially steering the network towards a deflationary model.
Currently, Ethereum issues approximately 620,000 ETH annually while burning around 350,000 ETH. With the implementation of Fusaka, it is projected that Layer 2 activities could facilitate an additional burn of between 200,000 and 400,000 ETH each year, with potential for even greater numbers as adoption increases.
In the market, Ethereum has seen a price increase, trading at around $3,082 after surpassing both its seven-day simple moving average of $2,979 and the crucial psychological level of $3,000. Its daily trading range has fluctuated between $2,976 and $3,141. Should ETH maintain its position above $3,080, which coincides with its 30-day SMA, traders will be eyeing a target near $3,269, which aligns with the 50 percent Fibonacci zone. Broader market trends are also showing positivity, with the total market capitalization rising to $3.13 trillion, while Bitcoin has also entered a positive trajectory.
