Ethereum Updates Today: Fusaka Upgrade on Ethereum Triggers Structural Deflation Through L2 Collaboration

Fusaka Upgrade Poised to Transform Ethereum

Scheduled for activation on December 3, 2025, Ethereum’s Fusaka upgrade is generating optimism among industry experts and developers. Many believe it will significantly reshape the network’s fee structure and token dynamics.

Central to Fusaka is the introduction of EIP-7918, a proposal that links Layer-2 (L2) data expenses directly to mainnet gas fees. This change is set to make L2 solutions major contributors to ETH burning, thereby strengthening Ethereum’s value proposition by tying L2 activity to increased ETH burn rates. Such a structural adjustment could accelerate Ethereum’s deflationary momentum.

Crypto analyst Kira Sama described Fusaka as “the most bullish upgrade for ETH as an asset,” highlighting its potential to boost ETH’s value through ongoing burn mechanisms.

Key Technical Innovations

• PeerDAS (Peer Data Availability Sampling): This feature reduces the bandwidth and storage requirements for validators by enabling probabilistic data checks without the need to download entire data blobs.
• Blob-Only Parameter (BPO) Forks: These allow for gradual increases in network capacity, avoiding the need for disruptive hard forks and supporting Ethereum’s ambition to surpass 100,000 transactions per second through a modular architecture.

Experts predict that Fusaka could lower L2 data costs by 40% to 60% over time, a development particularly advantageous for high-volume sectors such as decentralized finance and blockchain gaming.

Market Response and Institutional Moves

The market has already begun to reflect Fusaka’s anticipated impact. In late November, Ethereum’s price climbed 5% to $2,922 after rebounding from a key support level, even as the network experienced $589 million in net outflows from spot ETFs. Meanwhile, institutional interest has grown, with Bitmine acquiring 3% of Ethereum’s total supply despite facing $4.5 billion in unrealized losses—an indication of strong long-term conviction.

Currently, the ETH/BTC ratio stands at 0.0337, its lowest since 2022. This suggests that Ethereum may outperform Bitcoin as the benefits of Fusaka become apparent.

Broader Ecosystem Implications

Fusaka’s influence extends beyond technical enhancements. By motivating L2 solutions to compensate Ethereum for data availability, the upgrade fosters a mutually beneficial relationship between the mainnet and its broader ecosystem. Kira Sama anticipates that enterprise and institutional L2s—such as Coinbase’s Base and Robinhood’s L2—will emerge as leading ETH burners, further cementing Ethereum’s position as a global settlement platform.

This development draws parallels to the 2021 London hard fork, which introduced EIP-1559 and revolutionized Ethereum’s fee model, sparking comparisons to the onset of a new bullish phase for the network.

Looking Ahead: The Road to Glamsterdam

Fusaka also paves the way for Ethereum’s next significant upgrade, Glamsterdam, slated for 2026. Upcoming features like enshrined proposer builder separation (ePBS) and block-level access lists (BALs) are expected to further enhance MEV management and execution efficiency. For now, all eyes are on December 3, as stakeholders watch to see if Fusaka delivers on its ambitious promises for scalability and deflation.