Key Insights
- •Ethereum news: Robust network activity and healthy demand, especially from institutions, have been the hallmark of Ethereum’s performance in 2025.
- •Ethereum has circumvented scalability issues through layer 2s, but analysts question this approach’s effectiveness in accruing value to ETH.
- •What to expect from Ethereum’s Fusaka upgrade and ETH’s outlook for 2026.
Ethereum's Performance in 2025
Only one more month remains until 2025 wraps up, and it’s been quite an interesting year in Ethereum news. Not just by its price action, but also by its network performance, but also in adoption milestones. Ethereum remained dominant in key areas such as the DeFi segment, looking back over the last few months. The network was still the top blockchain by TVL in November, even though it tanked by over $27 billion from its November peak.
The large value locked within Ethereum reflects investor confidence in the network. Institutional demand for ETH also contributed to Ethereum’s rising popularity this year. For reference, Ethereum ETFs cumulatively registered inflows worth over $12 billion between April and October 2025.
Ethereum ETFs also took a bit of a hit during the pullback over the last few weeks. However, the ETFs were still holding on to a substantial amount of the coin, hence supporting its bottom line.
Concerns About ETH Price Potential Amidst Layer 2 Growth
Although the above data confirmed Ethereum’s strong position, especially from a network performance perspective, there were still some looming concerns. Some investors believe that the Ethereum network value may not effectively trickle down into ETH demand, largely due to Ethereum layer 2 networks. While the Ethereum layer 2s have been critical in decongesting the mainnet, they have also taken up substantial volumes. These are volumes that would have contributed more value and demand for the ETH crypto. Layer 2s such as zkSync, Optimism and Arbitrum experienced robust growth over the last 2 years. They have contributed to the Ethereum network not only in terms of lower fees but also faster transaction execution.
Despite the concerns about L2s eating into ETH demand, the mainnet still accounts for a sizable percentage of the Dapp and WEB3 ecosystem. Moreover, Ethereum ETFs have been contributing heavily to demand for the ETH, hence highlighting the cryptocurrency’s attractiveness and potential for higher price levels.
Impact of the Upcoming Fusaka Upgrade
Internally, the Ethereum network was among the top blockchains with high developer activity over the last 12 months. This activity has recently been building towards an upcoming upgrade to the network that will reportedly address some of the aforementioned issues that the network has been facing recently. The Fusaka upgrade is slated for 3 December, and could end up being another pivotal moment for the Ethereum network. Preliminary information revealed that the upgrade will introduce more efficiency to the mainnet. For example, as per recent Ethereum news, the Fusaka upgrade will reportedly facilitate more transactions per block, with the default gas limit capped at 60 million. The upgrade will also allow validators to sample parts of blob data rather than downloading its entirety.
In other words, this upcoming upgrade will allow the mainnet to be more efficient and cost-effective. These changes are expected to make the Ethereum mainnet more attractive, while reducing its dependence on Layer 2 networks. If the upgrade succeeds, then Ethereum’s organic activity may contribute to more demand for the ETH crypto. Furthermore, it could potentially fuel more activity in the Ethereum network and, therefore, boost confidence among ETH holders and investors.
ETH Price Outlook for 2026
This brings us to ETH price prospects in 2026. Although 2025 has been a rollercoaster of events, it has offered insights into robust institutional demand and healthy network activity. A solid footing, but one that could set the pace for another interesting year ahead. Some analysts believe that ETH price may push above $5,000 in the coming months if demand remains strong.