Ethereum Fusaka Will Be ‘The Most Bullish Upgrade’ Ever, Pundit Claims
Overview
A pseudonymous analyst has sparked discussions regarding Ethereum’s upcoming Fusaka upgrade, suggesting it could significantly benefit ETH as an asset. The analyst argues that this upgrade may finally enable Layer-2 networks to become effective ETH burners, altering Ethereum’s fee structure.
The Fusaka Upgrade and Its Implications
Scheduled for December 3, the Fusaka upgrade is presented as a transformative event for Ethereum’s fee economics, primarily due to a specific change known as EIP-7918. According to the analyst, Kira Sama, this upgrade marks a pivotal moment for ETH. The central idea revolves around the treatment of Layer-2 (L2) networks and their interaction with Ethereum’s base layer.
Historically, Ethereum’s base layer has subsidized L2 data availability, allowing L2 deployers to profit without contributing to ETH burn. Kira notes that this arrangement has led to significant growth in L2 usage but has not translated into meaningful ETH burning. EIP-7918 aims to address this by adjusting L2 data costs to be more closely aligned with mainnet gas prices.
Kira explains that L2 fees will now be bound by execution costs, facilitating quicker price discovery and ensuring more stable fees during periods of high demand. This change will impose a minimum fee on rollups for posting their batches, which will be paid in ETH. A portion of these fees will be burned under the existing EIP-1559 mechanism. As L2 throughput increases, Kira believes this will become a significant driver of ETH’s burn dynamics, leading to a long-term reduction in ETH supply.
Kira’s narrative extends to corporate and institutional rollups, claiming that several organizations will contribute to ETH burning through their L2 solutions. This includes a variety of anticipated and existing L2s from notable companies. The analyst envisions a future where corporate activity on Ethereum-secured L2s drives ETH’s deflationary potential, likening the potential impact of Fusaka to the London hard fork that introduced EIP-1559.
Impact on the crypto market
- Potential for increased ETH burn from L2 networks due to changes in fee structure.
- Shift in Ethereum’s fee economics may attract more economic activity to the network.
- Corporations launching their own L2 solutions could lead to broader adoption of Ethereum.
- The upgrade may create a bullish sentiment around ETH, reminiscent of past impactful upgrades.
- Long-term implications for ETH’s supply dynamics could influence market perceptions and investment strategies.
Updated: 11/28/2025, 7:19:30 PM
