- Ethereum Fusaka upgrade introduces EIP-7918, raising blob fees significantly.
- EIP-7918 ties blob fees to L1 base fees, increasing ETH burn.
- Impact on L2 platforms, users face cost adjustments.
The Ethereum network experienced a significant shift with the Fusaka upgrade, introducing a blob fee mechanism that increased by 15 million times, reflecting actual network costs.
This change is expected to enhance network efficiency and potentially increase ETH burning by up to eight times, impacting Layer 2 economics and overall Ethereum value.
EIP-7918 Sparks Eightfold Increase in Ether Burn
Fusaka upgrade introduces a mechanism tying blob fees directly to L1 costs, significantly altering fee structures within Ethereum’s ecosystem. The EIP-7918 reform sets a blob fee floor to counteract previous minimal charges of 1 wei.
Significant increase in blob fees anchors them to real costs, increasing Ether (ETH) burn rates potentially by eight times. Fees tied to L1 execution costs promote a fair resource consumption model across L2 platforms.
Ethereum’s changes led to varied community reactions. Institutions like Bitwise and Fidelity Digital Assets anticipate a new revenue stream for ETH holders amid possible higher transaction costs for Layer 2 platforms. This scenario poses challenges for L2 economics and may adjust user costs.
Under Fusaka, the blob fee gets a floor tied to execution fees, roughly the execution base fee divided by 16, creating a more consistent revenue stream for ETH holders. – Ryan Sean Adams, Research Analyst, Bitwise.
Impact on Layer 2 Economics and User Costs
Did you know? Following Ethereum’s Fusaka upgrade, increased blob fees may help align scaling improvements with greater value capture for Ether, echoing the transformative effects of 2021’s EIP-1559.
According to CoinMarketCap, Ethereum (ETH) has a current price of $3,033.78 and a market cap of $366.16 billion, maintaining a 12.01% market dominance. Its trading volume has dropped by 55.46% in 24 hours to $12.73 billion. Price changes show a 0.20% rise in the last 24 hours, a 1.25% increase over 7 days, but a decline of 29.17% over 90 days. Data last updated December 6, 2025.
According to the Coincu research team, Ethereum’s move could enhance its deflationary dynamics, potentially boosting network value and efficiency through elevated blob fees and enhanced L2 data capacity, promoting longevity and resilience. The pricing model reshapes network economics, aligning with scaling advancements.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
No tags available.
Other Posts
- Amplify 2024: Ohio’s Premier Blockchain Summit
- Polymarket Announces U.S. Beta Relaunch Amid Market Buzz
- U.S. Treasury Proposes New Tax Relief Regulations
- Radiant Capital Faces $50M Loss in Major Security Breach
- SEGG Media Unveils $300 Million Crypto Reserve Plan
- 21Shares Files S-1 With SEC to Launch Hyperliquid ($HYPE) ETF
- Hong Kong Sentences Influencer for Unlicensed Investment Advice
- Franklin Templeton Signals TradFi and Crypto Integration
- Circle Mints $500 Million USDC on Solana Blockchain
- Circle Focuses on Expanding USDC Use in Hong Kong
- Western Union Trials Stablecoin System for Remittance Innovation
- GMGN Completes Compensation for MEV-Affected Users
- Is MetaMask Preparing for Its Long-Awaited MASK Token Airdrop?
- BitMine Expands Ethereum Holdings to $13B With Major Weekly Purchase
- U.S. House Passes Temporary Funding Bill for Continued Operations
- DeXe Protocol Begins Trading on Aster Platform
- Federal Reserve Reaffirms Neutral Stance on Cryptocurrencies
- Balancer Hacks: 2,000 ETH Laundered via Tornado Cash
- Paradigm Stakes $700 Million in HYPE, Shaking Up Crypto Governance
- Coinbase Launches Monad Token Sale Amidst Industry Speculation
- Amplify 2024: Ohio’s Premier Blockchain Summit
- Polymarket Announces U.S. Beta Relaunch Amid Market Buzz
- U.S. Treasury Proposes New Tax Relief Regulations
- Radiant Capital Faces $50M Loss in Major Security Breach
- SEGG Media Unveils $300 Million Crypto Reserve Plan
- 21Shares Files S-1 With SEC to Launch Hyperliquid ($HYPE) ETF
- Hong Kong Sentences Influencer for Unlicensed Investment Advice
- Franklin Templeton Signals TradFi and Crypto Integration
- Circle Mints $500 Million USDC on Solana Blockchain
- Circle Focuses on Expanding USDC Use in Hong Kong
- Western Union Trials Stablecoin System for Remittance Innovation
- GMGN Completes Compensation for MEV-Affected Users
- Is MetaMask Preparing for Its Long-Awaited MASK Token Airdrop?
- BitMine Expands Ethereum Holdings to $13B With Major Weekly Purchase
- U.S. House Passes Temporary Funding Bill for Continued Operations
- DeXe Protocol Begins Trading on Aster Platform
- Federal Reserve Reaffirms Neutral Stance on Cryptocurrencies
- Balancer Hacks: 2,000 ETH Laundered via Tornado Cash
- Paradigm Stakes $700 Million in HYPE, Shaking Up Crypto Governance
- Coinbase Launches Monad Token Sale Amidst Industry Speculation
- Amplify 2024: Ohio’s Premier Blockchain Summit
- Polymarket Announces U.S. Beta Relaunch Amid Market Buzz
- U.S. Treasury Proposes New Tax Relief Regulations
- Radiant Capital Faces $50M Loss in Major Security Breach
- SEGG Media Unveils $300 Million Crypto Reserve Plan
- 21Shares Files S-1 With SEC to Launch Hyperliquid ($HYPE) ETF
- Hong Kong Sentences Influencer for Unlicensed Investment Advice
- Franklin Templeton Signals TradFi and Crypto Integration
- Circle Mints $500 Million USDC on Solana Blockchain
- Circle Focuses on Expanding USDC Use in Hong Kong
- Western Union Trials Stablecoin System for Remittance Innovation
- GMGN Completes Compensation for MEV-Affected Users
- Is MetaMask Preparing for Its Long-Awaited MASK Token Airdrop?
- BitMine Expands Ethereum Holdings to $13B With Major Weekly Purchase
- U.S. House Passes Temporary Funding Bill for Continued Operations
- DeXe Protocol Begins Trading on Aster Platform
- Federal Reserve Reaffirms Neutral Stance on Cryptocurrencies
- Balancer Hacks: 2,000 ETH Laundered via Tornado Cash
- Paradigm Stakes $700 Million in HYPE, Shaking Up Crypto Governance
- Coinbase Launches Monad Token Sale Amidst Industry Speculation
Latest
Press Release
Hotstuff Labs launches Hotstuff, a DeFi native Layer 1 connecting On-Chain Trading with Global Fiat Rails
Bybit Private Wealth Management Beat November Downtrend with Top Fund Delivering Close to 30% APR
