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Bitwise CIO Matt Hougan outlined why Ethereum may lead the next major crypto rally, pointing to an upcoming network upgrade that he believes investors are undervaluing. The Fusaka hard fork, scheduled for activation on December 3, 2025, introduces changes that could reshape Ethereum revenue models and Layer 2 activity.
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Hougan noted that markets often focus on price cycles while missing underlying improvements in value capture. He argued that large tokens are shifting toward models that directly reward holders, marking a broader shift in digital asset design. In his view, the Fusaka update is at the center of that trend.
The Fusaka hard fork activates on December 3, 2025 at block 13,164,544, following successful testing on Holesky, Sepolia, and Hoodi networks. Its key feature, Peer Data Availability Sampling (PeerDAS), lets validators check data availability by sampling small packet segments instead of downloading full data blobs. That method reduces bandwidth consumption and makes Layer 2 rollup operations more efficient.
Fusaka also increases the block gas limit from 45 million to as high as 150 million, expanding capacity for transaction-heavy applications, contract deployment, and data-dense activity across the ecosystem.
Hougan wrote on X that Fusaka introduces “a minimum fee for recording data from Layer 2s” and suggested that this could raise Ethereum revenue capture five to ten times. He added:
“I suspect the market will start to orient around the positive impacts of Fusaka soon, particularly if it’s delivered Dec. 3 as expected.”
Uniswap is evaluating a fee switch that would burn around 16 percent of trading fees if approved. Hougan commented that this shift could push the UNI token toward the top ranks by market capitalization. “I suspect this will push UNI toward being a top 10 token by market cap over time,” he wrote.
The community around XRP is studying potential staking options that would adjust incentives for holders. Hougan sees this as part of a growing pattern: tokens pivoting from passive governance roles into models that create clearer economic rewards.
Hougan believes 2026 will make these shifts more visible as more networks adopt economic structures that prioritize revenue alignment with token holders. He wrote:
“The level of value capture in digital assets is up only from here. I think people look at token value capture as static. It’s not.”
He called the Fusaka upgrade “an under-appreciated catalyst and one reason ETH could lead the crypto rebound.”