Analysts like Joseph Young project that Ethereum’s market capitalization could climb into the trillions from its current level of $386 billion.
This is simply because EIP-4844 makes Ethereum faster and cheaper to use, thus more transactions happen and more ETH is burned. 

Bitcoin (BTC) remains the largest digital asset with a market capitalization of $1.9 trillion, while Ethereum (ETH) follows as the second-largest with roughly $386 billion.

Yet, analysts suggest Ethereum’s economic model may position it for even stronger long-term appreciation, potentially driving it toward a trillion-dollar valuation.

According to Joseph Young, a market analyst and long-time Ethereum enthusiast, Ethereum’s recent burn data reinforces this thesis:

Ethereum is trending towards becoming DEFLATIONARY over time, the key catalyst for a trillion-dollar eth valuation. In the last 30 days, Ethereum burned 9,676 ETH. annualized, that’s 116,112 ETH burned, roughly $380 per year. ETH issuance is ~0.7%, around 971,000 ETH per year. If more high-throughput L2s/apps like Lighter continue to emerge, blob burn could move closer to issuance, pushing ETH towards net deflation.

The Role of EIP-4844 and “Blob Gas”

EIP-4844, also called “proto-danksharding,” is an upgrade to the Ethereum blockchain that introduced a new transaction type involving “blobs”: large data objects attached to transactions, but not accessible by the EVM execution layer.

He explained, “EIP-4844 introduced blob gas last year, where all blob fees are burned. As rollups scale, blob usage scales, burning ETH. ”

Proto-danksharding is a stepping-stone toward full sharding by enabling higher data throughput for rollups and L2s, without requiring the full complexity of sharding yet. The high usage of Ethereum and its rollups has led to high calldata costs for rollups posting data on L1.

EIP-4844 aims to reduce those costs by introducing blob-carrying transactions that enable rollups to post large amounts of data more cheaply and efficiently, improving scalability and lowering fees for users.

By using blobs instead of traditional calldata, rollups can reduce the cost per byte of data posted. For example, some estimates suggest 10× to 100× savings. More data per block becomes affordable, improving scalability for rollups and, by extension, applications on Ethereum.

Ethereum’s tokenomics have changed since The Merge, which replaced proof-of-work mining with proof-of-stake validation, cutting ETH issuance by more than 80%. Subsequent upgrades like Pectra and Dencun have further enhanced scalability by increasing transaction capacity across the Layer 2 network.

Joseph Young highlighted Lighter, a perpetual futures decentralized exchange (perp DEX) built as a zero-knowledge rollup (zk-rollup) on Ethereum, as a prime example of how new technologies are pushing the network’s limits.

By combining zk proofs with blob transactions introduced in EIP-4844, Lighter demonstrates how Ethereum can scale throughput dramatically without compromising Layer 1 security.

Supporting this view, Crypto News Flash recently cited data from Growthepie showing that, within a 24-hour window, Ethereum achieved a record 24,192 transactions per second (TPS), the highest throughput ever recorded on the network.

Operating at approximately 4,000 TPS, Lighter demonstrates a throughput nearly 20 times higher than the Base Chain’s 100–200 TPS capacity. The expanded transaction volume contributes to increased fee burn, supporting Ethereum’s deflationary mechanics and long-term valuation framework.

As stated in our earlier news story, ETH has been trending upward from a support level near $3,350, though recent volatility has seen it decline by 16% in the past week and an additional 3% in the past 24 hours, trading around $3,222.

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Filed under: Bitcoin - @ November 7, 2025 2:27 pm