Ethereum (ETH) Fusaka upgrade, burn volume expected to increase up to 8-fold

JH Kim

Summary

It reported that after the Ethereum (ETH) Fusaka upgrade, changes in the blob fee structure could significantly increase Ethereum burn volume.
JackYi, founder of LD Capital, said that blob fees being integrated into the ETH burn mechanism is expected to result in up to 8 times more ETH being burned.
He explained that by 2026, blob fee-based burns could account for 30% to 50% of total burns.

There are observations that Ethereum's (ETH) burn volume could increase significantly due to changes in the blob fee structure following the Fusaka upgrade. On the 5th (local time), LD Capital founder JackYi said on official X (formerly Twitter) that the blob base fee surged 15 million-fold after the Fusaka upgrade.

JackYi explained that this change was due to the addition of a minimum limit for blob fees following the introduction of EIP-7918. He said that in the past nodes bore costs such as KZG verification but did not obtain reasonable returns, which resulted in Layer 2 (L2)s effectively occupying network resources for free. He claimed that the Ethereum Fusaka upgrade served as a catalyst for changing that structure.

He added that it can now prevent L2s from occupying network resources for free by reflecting actual resource consumption. At the same time, he said that blob traffic can be regulated through price fluctuations to prevent congestion, and that blob storage capacity can be increased through PeerDAS technology. JackYi emphasized that the Fusaka upgrade strengthens the role of blob fees.

As a market impact, changes to Ethereum's burn mechanism were mentioned. JackYi said that as blob fees are integrated into the ETH burn mechanism, up to 8 times more ETH could be burned in the future. He added that by 2026, blob-fee-based burns could account for 30% to 50% of total burns. This explains that the Fusaka upgrade could change Ethereum's burn volume and supply structure.