The highly anticipated Fusaka Upgrade for Ethereum is on the verge of going 
live on Wednesday, heralding significant enhancements to the network&#8217;s overall 
functionality. Analysts contend that this pivotal development could usher in a 
considerable supply crunch for ETH, potentially boosting its price during a 
challenging period for the broader cryptocurrency market. Layer 2 Solutions To 
Boost ETH Burn According to analysts at Bull Theory, the Fusaka Upgrade 
integrates components from previous upgrades—Osaka, Fulu, and PeerDAS—but its 
most impactful feature is its resolution of one of Ethereum’s biggest 
challenges. Layers 2 (L2) solutions have long utilized Ethereum’s security 
while contributing minimal fees back to the network. Despite L2 solutions like 
Base, Arbitrum, Optimism, and zkSync generating millions in fees from users, 
the fees recorded on Ethereum tended to diminish to nearly zero when they 
posted their data. Consequently, this meant that significant L2 activity did 
not result in substantial ETH being burned, even though approximately 85% of 
Ethereum transactions now occur on these Layer 2 solutions. Related Reading: 
Bitcoin Slump Claims New Victims: Leveraged ETFs Tied To Strategy Suffer Major 
Losses The Fusaka Upgrade fundamentally changes this dynamic. A key 
enhancement is EIP-7918, which mandates that Layer 2 transactions pay real 
fees to Ethereum. This adjustment ensures that every L2 transaction will 
contribute directly to the burning of ETH—something that was not previously 
guaranteed. The analysts assert that this feature represents one of the most 
significant value shifts since the introduction of EIP-1559. Post-Fusaka 
Projections The upgrade is further expected to broaden the scope of ETH burn 
from being predominantly derived from Layer 1 (L1) transactions to 
encompassing all L2 activity. Historically, most ETH burn has originated from 
mainnet transactions; thus, the network saw slight inflation in 2024–2025 as 
Layer 2s made transactions cheaper, leading to a decrease in ETH burn while 
staking continued to issue new ETH. Post-Fusaka, every L2 blob will incur a 
minimum cost, which will be burned. As Layer 2 adoption increases, the rate at 
which ETH is burned will also rise, contributing to increased scarcity of ETH. 
This enhancement positions Ethereum to shift back towards deflation for the 
first time in several years. Currently, ETH issues around 620,000 new tokens 
annually for stakers while burning approximately 350,000 tokens. This results 
in a net slight inflation. However, projections following the Fusaka Upgrade, 
even with conservative estimates, suggest that the additional burn from L2 
activity could range from 200,000 to 400,000 ETH per year. Combined with 
existing burn rates, this could bring the total to over 600,000 ETH, leading 
to a net neutral or slightly deflationary state for ETH. More bullish models 
predict that if L2 adoption flourishes and demand for blobs rises, burn rates 
could soar to between 900,000 and 1.2 million ETH annually, resulting in a 
supply decrease of 200,000 to 300,000 ETH each year. Monetary Transformation 
For Ethereum? Another notable aspect of the Fusaka upgrade is PeerDAS, which 
enhances Layer 2 growth by reducing bandwidth requirements by 85%. This 
efficiency allows L2 solutions to publish more blobs at lower costs, resulting 
in increased fees and, consequently, more ETH burned. Related Reading: Analyst 
Says This Needs To Happen For The XRP Price To Rally Again The upgrade also 
increases the block gas limit from 36 million to 60 million, allowing more 
transactions to fit within each block. This increase means that more 
transactions can occur, leading to higher fees collected and a corresponding 
rise in burning. Furthermore, lower fees for transactions—such as swaps, 
bridges, on-chain gaming, and social applications—will likely drive more 
usage, resulting in increased transactions and higher ETH burn. Ultimately, 
the analysts believe that the Fusaka Upgrade represents a significant monetary 
transformation for Ethereum, indicating that the network is not only scaling 
but also beginning to monetize that scaling effectively. Featured image from 
DALL-E, chart from TradingView.com

Ethereum Fusaka Upgrade Goes Live Today: Experts Predict Potential Supply Crunch Ahead

According to Anthony Scaramucci, tokenization will drive the next chapter of 
digital finance as smart contracts migrate onto faster, cheaper blockchain 
rails. And Solana (SOL), he says, stands out.

Scaramucci crowns Solana ‘one of the big winners’ of tokenization

Yi He appointed co-CEO of Binance, focusing on innovation and expansion as she 
joins Richard Teng to lead global growth and inclusion.
The post Yi He becomes co-CEO of Binance as company focuses on innovation and 
expansion appeared first on Crypto Briefing.

Yi He becomes co-CEO of Binance as company focuses on innovation and expansion

Fin launches stablecoin payments on Solana after $17M Series A, aiming for 
fast, cost-effective blockchain-based transactions.
The post Former Citadel team secures $17M Series A to launch Fin&#8217;s payments 
product on Solana appeared first on Crypto Briefing.

Former Citadel team secures $17M Series A to launch Fin’s payments product on Solana

Bitcoin posted its strongest daily gain since May as buy-side flows, a sharp 
adjustment in investor sentiment and a return of the Coinbase premium hint at 
a potential rally above $100,000.

Cryptocurrency price in ILS