Ethereum News Today: Ethereum's Fusaka Upgrade Sparks Structural Deflation via L2 Synergy

Ethereum's Fusaka upgrade, set to activate on December 3, 2025, has drawn bullish predictions from analysts and developers, who argue it will fundamentally alter Ethereum's fee economics and token dynamics. The upgrade introduces EIP-7918, a mechanism that ties Layer-2 (L2) data costs to mainnet gas prices, effectively transforming L2s into significant ETH burners. This shift is expected to enhance Ethereum's value capture by aligning L2 usage with ETH burn rates, a structural change that could accelerate the network's deflationary trajectory. Analyst Kira Sama, a pseudonymous crypto pundit, framed Fusaka as "the most bullish upgrade for ETH the asset ever," emphasizing its potential to drive ETH's price through sustained burn activity.

The upgrade's core innovation, PeerDAS (peer data availability sampling), reduces bandwidth and storage demands for validators by enabling probabilistic data verification without requiring full blob downloads. This scalability improvement, combined with blob-only parameter (BPO) forks, allows for incremental capacity increases rather than disruptive hard forks, supporting Ethereum's long-term goal of exceeding 100,000 transactions per second (TPS) via a modular stack. Analysts estimate Fusaka could slash L2 data fees by 40%-60% over time, particularly benefiting high-throughput applications like DeFi and gaming.

Market dynamics further underscore the upgrade's significance. Ethereum's price rebounded 5% to $2,922 in late November, recovering from a critical support level, though the network faced $589 million in net outflows from spot ETFs. Meanwhile, institutional accumulation intensified, with Bitmine acquiring 3% of Ethereum's total supply despite $4.5 billion in unrealized losses, signaling long-term confidence. The ETH/BTC ratio, currently at 0.0337—the lowest since 2022—suggests Ethereum could outperform Bitcoin as Fusaka's benefits materialize.

The upgrade's impact extends beyond technical improvements. By incentivizing L2s to pay Ethereum for data availability, Fusaka creates a symbiotic relationship between the base layer and its ecosystem. Kira Sama projected that corporate and institutional L2s (e.g., Coinbase's Base, Robinhood's L2) will become dominant ETH burners, reinforcing Ethereum's role as a settlement layer for global enterprises. This narrative parallels the 2021 London hard fork, which introduced EIP-1559 and reshaped Ethereum's fee model, drawing comparisons to a potential new bull cycle.

Looking ahead, Fusaka sets the stage for Ethereum's next major upgrade, Glamsterdam, expected in 2026. Features like enshrined proposer builder separation (ePBS) and block-level access lists (BALs) aim to further optimize MEV and execution efficiency. For now, the focus remains on December 3, with analysts and traders closely monitoring whether Fusaka's implementation meets its ambitious scaling and deflationary promises.