Ethereum News Today: Ethereum Gas Limit Surges 50% to 37.3 Million, ETH Price Up 25%

Ethereum’s base layer is experiencing a significant performance enhancement, with the network’s gas limit approaching 45 million units. This adjustment is poised to substantially boost its transaction processing capacity. According to a July 20 update from Ethereum (ETH) co-founder Vitalik Buterin, nearly 50% of the stake is currently backing this change, with the limit already rising to 37.3 million. On Ethereum, “gas” represents the unit of computational expense required to process transactions or smart contracts.

Users pay for gas in ETH to maintain fair pricing of network resources and to mitigate spam. The gas limit determines the total amount of computation that can be included in a single block. Each transaction typically has a gas limit of around 21,000 for a standard transfer. The block gas limit sets the upper boundary for the entire block, controlling its size and processing load. Historically, Ethereum’s block gas limit has increased in response to network demand and technological advancements.

Following Ethereum’s transition to proof-of-stake in 2022, the gas limit remained unchanged for over three years. In February 2025, it was increased to 36 million, and it currently stands at approximately 37.3 million. A full increase to 45 million would enable a significantly higher transaction volume, marking a 50% increase over the pre-2025 ceiling.

Recent client optimizations, such as Geth v1.16.0, which reduced archive node storage requirements from over 20 terabytes to less than 2 terabytes, have facilitated this latest push. These changes mitigate the risk of centralization that can occur with larger block sizes, where more powerful hardware might be necessary to reliably run validator nodes.

Increasing the gas limit offers several benefits, including reduced traffic during peak hours and improved support for layer-2 integrations and decentralized applications. However, it also presents trade-offs. Larger blocks could strain smaller node operators, accelerate blockchain growth, and increase the risk of synchronization delays or chain splits if not carefully managed.

This development coincides with a resurgence of market optimism. As of the latest update, ETH is trading at $3,755, up 2% over the last day and 25% over the previous week. Analysts view the technical improvement and staking consensus around the gas limit as potential catalysts for a breakout above $4,000.

Ethereum's gas limit has surged to 37.3 million, with a significant 50% of stakers endorsing a target of 45 million. This increase is anticipated to enhance the network's throughput, allowing for more transactions to be processed efficiently. Concurrently, the price of Ether (ETH) is approaching the $4,000 mark, driven by a bullish market sentiment. This dual development underscores the growing confidence in Ethereum's infrastructure and its potential to support a wider range of decentralized applications and financial services. The rise in the gas limit is a technical adjustment aimed at improving the network's capacity, while the price movement reflects broader market optimism. As Ethereum continues to evolve, these developments are likely to attract more users and developers, further solidifying its position as a leading blockchain platform. The increase in the gas limit is a strategic move to accommodate the growing demand for Ethereum's services, ensuring that the network can handle increased traffic without compromising on speed or security. The bullish market momentum for ETH is a testament to the community's faith in the platform's future prospects, as investors and traders anticipate further growth and innovation.