Ethereum is gearing up for its highly anticipated Fusaka upgrade on December 3, and crypto analysts are framing it as potentially the most bullish event ever for ETH as an asset. The upgrade centers on a single change — EIP-7918 — which could significantly alter Ethereum’s Layer-2 fee dynamics and accelerate ETH burn.
Layer-2 Networks Set to Burn ETH
Pseudonymous crypto analyst Kira Sama outlined the thesis on X, arguing that Fusaka will mark a structural shift in Ethereum’s fee economics. Currently, Ethereum’s base layer effectively subsidizes Layer-2 (L2) networks by charging negligible fees for posting transaction data, allowing L2 deployers to profit without significantly burning ETH.
EIP-7918 aims to change this by tying L2 data costs more closely to mainnet gas prices. According to Kira:
“L2 fees will be bounded by the execution cost, which will help us reach L2 fee price discovery faster. It also helps maintain fees during spikes so L2 users won’t be rugged from absurd transaction costs. Win-win.”
In practice, this means rollups will pay a non-trivial, protocol-enforced minimum in ETH for posting batches, and a portion of these fees will be burned under the EIP-1559 mechanism. As L2 throughput scales, these burns could become a dominant driver of ETH’s deflationary dynamics.
Institutional and Corporate Rollups Could Amplify Burn
Kira’s bullish scenario extends beyond individual L2s to large corporate and institutional deployments. He cites examples including Coinbase, Robinhood, OpenAI, Sony, Alibaba, Kraken, and Deutsche Bank — all potentially burning ETH as part of their L2 operations.
“Every company in the world will launch their own layer 2. Every alt-L1 will become L2 and start burning ETH. ETH inflation will shrink,” he wrote, emphasizing a long-term vision where Ethereum becomes the primary settlement layer beneath corporate and institutional chains.
While these projections are speculative, the narrative underscores the upgrade’s potential to increase ETH’s utility and scarcity through sustained L2 activity.
Comparisons to the London Hard Fork
Kira explicitly compared Fusaka to Ethereum’s London hard fork in 2021, which introduced EIP-1559 and created the first meaningful ETH burn mechanism.
“When Ethereum introduced burn through EIP-1559 in 2021, it lifted the whole market up. Everyone will be caught off guard this time as well. L2s burning ETH incoming. Bullish ETH. Bullish L2s.”
At the time of reporting, ETH was trading at $3,022, as traders and investors brace for the December 3 upgrade.
Bottom Line
While the Fusaka upgrade does not guarantee universal adoption by all corporate L2s, it establishes a framework that could steadily increase ETH burn, making Ethereum more deflationary over time. Market watchers see it as a pivotal moment that could reinforce ETH’s role as the settlement layer for the growing ecosystem of Layer-2 solutions.