Ethereum’s Fusaka Upgrade Spurs Major Changes in Blob Fee Structure

2 mins mins

Key Points:

Ethereum’s Fusaka upgrade implemented EIP-7918, altering fee dynamics.
The upgrade could significantly increase ETH burning rates.
The upgrade affects Layer 2 economics, ensuring sustainable growth.

Eric Yaohua, founder of Liquid Capital, announced on social media critical details about Ethereum’s Fusaka upgrade, highlighting a surge in blob base fees due to EIP-7918 implementation.

This upgrade recalibrates Ethereum’s fee structure, impacting ETH supply dynamics and Layer 2 protocols, with potential significant increases in ETH burn rate.

Ethereum Fusaka Upgrade Reshapes Blob Fee Dynamics

On December 5th, Ethereum’s Fusaka upgrade, including EIP-7918, was implemented, impacting the blob fee structure. According to Liquid Capital’s Eric Yaohua, this upgrade marks a shift from almost-free blob fees to a market-reflecting mechanism, potentially affecting Ethereum’s fee and burn structure, crucial for ecosystem dynamics.

Insights from Coincu suggest that the Fusaka upgrade, while placing additional strain on Layer 2 economics, provides essential corrections to Ethereum’s green-throughput and pricing. This move strengthens the protocol’s sustainable growth, ensuring ETH validators capture more economic value.

Eric Yaohua, Founder, Liquid Capital, emphasized that “Fusaka’s EIP-7918 introduces a blob ‘base fee’ anchored to L1 execution gas, lifting blob prices from effectively 1 wei to a floor tied to actual network costs.”

Ethereum Price and Validator Revenues See Potential Boosts

Did you know? The Fusaka upgrade could escalate ETH burning rates up to eightfold, potentially influencing 30-50% of the total burn by 2026, increasing ETH scarcity.

Ethereum (ETH) currently sits at a price of $3,019.41, as reported by CoinMarketCap. Its market cap reaches $364.43 billion, with a dominance of 12.01% in the crypto market. Over recent months, price fluctuations have been notable, with a 3.33% decrease in the past 24 hours and a staggering 35.68% drop over the past 60 days. Trading volume over the last day fell by 6.01%, reflecting cautious market sentiment. These figures underscore the potential volatility and momentum within the Ethereum ecosystem.

ethereum-daily-chart-2147 — Ethereum(ETH), daily chart, screenshot on CoinMarketCap at 22:00 UTC on December 5, 2025. *Source: CoinMarketCap*

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.