- 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.
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.
Ethereum(ETH), daily chart, screenshot on CoinMarketCap at 19:31 UTC on December 6, 2025. Source: CoinMarketCapAccording 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.
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Source: https://coincu.com/ethereum/ethereum-fusaka-upgrade-blob-fee-impact/
