Ether Gas Limit Hike Could Slash Fees and Speed Up the Network
After additional validators expressed support for increasing Ethereum’s gas limit to 45 million units, the cryptocurrency’s transaction volume rose on Sunday. It is anticipated that this increase will enhance network scalability and lower transaction fees. Since the gas limit was increased from 30 million to 36 million in February, this most recent increase is the first notable increase.
On Ethereum‘s layer 1 network, higher gas limitations translate into higher transaction volumes. When validators indicate that they support the modification, the limit can be automatically adjusted by about 0.1% every block. Chainspect reports that during the weekend, Ethereum’s throughput increased slightly to a little under 18 transactions per second.
Over 50% of ETH Stakers Back Raising Gas Cap to Slash L1 Fees
The maximum amount of gas used to carry out transactions or smart contracts in each block is known as the gas limit. The ether charge needed to carry out a transaction or carry out a smart contract on the network is known as gas.
In March 2024, Ethereum developers started a gas pumping campaign to raise the gas cap from 30 million to 40 million. They asserted that this would lower layer 1 transaction fees. The weekend’s increase in the gas limit coincided with a grassroots pump the gas campaign that had over half of all Ether staked, indicating support for raising the cap to 45 million or more.
Ethereum Rally: Price Breaks $3,800 Amid Record Network Activity
According to Etherscan, daily transactions on the Ethereum network have climbed from approximately 1.1 million in April to 1.4 million at present, reflecting the recent surge in network activity. The asset has increased in value by a staggering 54% in the last month, which is in line with the rise in network activity. With corporate treasuries and exchange-traded funds continuing to fill in, Ether price briefly surpassed $3,800 on Sunday, reaching a seven-month high.
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