Ethereum (ETH-USD) validators have agreed to raise the gas limit to nearly 32 million units, enhancing the network’s capacity to process more transactions. This marks Ethereum’s first gas limit increase since 2021 and the first since the Merge upgrade. According to CoinDesk, over half of the validators backed the adjustment, which was implemented automatically without the need for a hard fork.
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Vitalik Buterin Advocates for Layer-2 Expansion
Ethereum co-founder Vitalik Buterin has weighed in on the network’s scalability improvements, emphasizing the importance of the upcoming Pectra upgrade. In a post on X, Buterin explained that Pectra, expected in March, will double the blob target from 3 to 6, significantly increasing the capacity of layer-2 networks. He suggested that future blob target increases should be staker-voted, allowing the network to “adapt in response to technology improvements without waiting for hard forks.”
What Does the Gas Limit Increase Mean?
On Ethereum, gas measures the computational work needed to process operations like transactions or smart contracts. Raising the gas limit allows each block to handle more transactions or complex operations, reducing congestion and improving network efficiency. This could attract users to Ethereum who might otherwise opt for lower-cost alternatives like Solana (SOL-USD).
Boost for Ethereum’s Market Appeal
The increased gas limit could rekindle interest in Ether (ETH-USD), which has struggled against Bitcoin recently. One ETH fell to 0.03 BTC in January, its lowest level since 2021.
However, with this improvement and Pectra’s capacity boost on the horizon, Ethereum may see a rebound in investor sentiment and increased demand for its network services. At the time of writing, Ethereum is sitting at $2,731.99.
