Fusaka upgrade could boost ETH burn rate by up to 8x, says analyst

The Ethereum Fusaka upgrade could increase the amount of ETH burned by up to eight times, according to Jack Yi, founder of LD Capital. Yi stated that the blob base fee surged 15 million-fold after the upgrade due to the implementation of EIP-7918, which added a minimum fee for blob transactions. He explained that previously, nodes incurred costs like KZG verification without fair compensation, allowing Layer 2 solutions to use network resources for free. The new system now reflects actual resource consumption, preventing free use by L2s, regulating blob traffic to avoid congestion, and increasing storage capacity through PeerDAS technology. With blob fees now integrated into the ETH burn mechanism, Yi projects they could account for 30% to 50% of total ETH burns by 2026.