The post Ethereum Fusaka Upgrade Raises Blob Base Fee Significantly appeared on BitcoinEthereumNews.com. Key Points: 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… The post Ethereum Fusaka Upgrade Raises Blob Base Fee Significantly appeared on BitcoinEthereumNews.com. Key Points: 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…

                                                                               Legal experts are concerned that transforming ESMA into the “European SEC” may hinder the licensing of crypto and fintech in the region.                     The European Commission’s proposal to expand the powers of the European Securities and Markets Authority (ESMA) is raising concerns about the centralization of the bloc’s licensing regime, despite signaling deeper institutional ambitions for its capital markets structure.On Thursday, the Commission published a package proposing to “direct supervisory competences” for key pieces of market infrastructure, including crypto-asset service providers (CASPs), trading venues and central counterparties to ESMA, Cointelegraph reported.Concerningly, the ESMA’s jurisdiction would extend to both the supervision and licensing of all European crypto and financial technology (fintech) firms, potentially leading to slower licensing regimes and hindering startup development, according to Faustine Fleuret, head of public affairs at decentralized lending protocol Morpho.Read more