BTC$98,573.613.51%ETH$2,707.105.42%XRP$2.53007.04%USDT$1.00070.05%SOL$205.035.53%BNB$575.020.48%USDC$0.99990.02%DOGE$0.26375.63%ADA$0.73456.70%TRX$0.21801.13%WBTC$98,735.333.53%LINK$19.756.24%AVAX$25.784.38%XLM$0.34132.73%SUI$3.37798.95%HBAR$0.24885.69%TON$3.77134.06%LEO$9.81451.40%SHIB$0.0₄15256.34%HYPE$24.977.17%MarketsShare this articleThis change was implemented after more than half of the validators supported the adjustment, which was enacted automatically without the need for a hard fork.By Shaurya Malwa|Edited by Parikshit MishraFeb 4, 2025, 9:22 a.m. UTCWhat to know: Ethereum’s capacity to handle transactions was enhanced as validators agreed to increase the gas limit to nearly 32 million units.This marked the first significant adjustment since late 2021 and the first in the post-Merge era.This increase was automatically implemented after over half of the validators signaled support without needing a hard fork.A higher gas limit could increase the utility of the Ethereum network, potentially boosting investor interest in ETH, which has seen a decline in value relative to bitcoin.The Ethereum network’s capacity to handle more transactions increased further late Monday as validators agreed on a gas limit increase for the first time since late 2021, also the first time in the network’s Merge era.The gas limit on Ethereum reached nearly 32 million gas units as of Tuesday morning with a maximum expected capacity of 36 million units. The last significant increase was in 2021, when the limit jumped from 15 million to 30 million gas units.STORY CONTINUES BELOWDon’t miss another story.Subscribe to the Crypto for Advisors Newsletter today.See all newslettersBy signing up, you will receive emails about CoinDesk products and you agree to ourterms of useandprivacy policy.This change was implemented after more than half of the validators supported the adjustment, which was enacted automatically without the need for a hard fork (or a split in the network). On Ethereum, gas is a unit that measures the computational work required to execute operations like transactions or smart contract functions. Each operation has a gas cost associated with it, ensuring that users pay for the exact amount of computational effort their actions require.The gas limit is the total amount of gas that can be used in a block. If transactions in a block exceed this limit, they are either delayed to the next block or must compete for inclusion based on the gas price offered.Raising the gas limit allows Ethereum to process more transactions or more complex operations within each block, thus improving network throughput and allowing the creation of sophisticated decentralized financial (DeFi) applications with minimal downtime.Higher gas limits also mean less congestion during peak times, which can make the network costly to use and turn users away to cheaper networks such as Solana.More network utility can add to investor demand for ETH, helping buoy the world’s second
Mar. Feb 4th, 2025
