Ethereum's network gas limit has been raised for the first time since its transition to a proof-of-stake (PoS) consensus model in 2022. On February 4th, the gas limit reached a record 35.3 million, according to Etherscan, Ethereum's blockchain explorer.
This adjustment follows a validator vote, with approximately 52% supporting the increase. The new limit is now 32 million gas units, with expectations of expanding to 36 million. The last modification occurred in late 2021 when the limit rose from 15 million to 30 million units.
The increase is expected to allow network blocks to accommodate more transactions, ease congestion, and help stabilize transaction fees. It also enhances Ethereum's ability to handle complex smart contracts and high-demand decentralized applications (dApps). The move further improves transaction speed and efficiency, making the network more scalable for DeFi and other blockchain-based innovations.
However, this change also burdens network nodes more as it increases processing requirements, potentially impacting decentralization. Ethereum co-founder Vitalik Buterin acknowledged the update, noting that the network's "L1 is scaling." He also discussed ongoing efforts to balance scalability with decentralization, highlighting the work on Ethereum Improvement Proposal (EIP) 4444 to ensure that the higher Layer 1 gas limits align with decentralization goals.
Buterin also commented on the upcoming Pectra update in March, which will increase Ethereum's blob count from three to six. He suggested that the blob target should be staker-voted, allowing it to increase in response to technology improvements without waiting for hard forks.
Industry expert Evan Van Ness emphasized the importance of this upgrade, noting that it marks the first increase since Ethereum transitioned to PoS after the Merge event in September 2022. He highlighted that coordination for the update took longer due to the decentralized nature of PoS compared to proof-of-work (PoW).
Independent Ethereum educator Anthony Sassano predicted that Ethereum's mainnet gas limit could reach at least 50 million by year's end. This expansion would significantly improve Ethereum's scalability and transaction processing capabilities if realized.