Ethereum News Today: Ethereum Set to Boost Gas Limit to 80M in 2026 BPO2 Upgrade

Ethereum developers are preparing for significant upgrades in 2026, with a focus on increasing the network's gas limit and implementing the "Glamsterdam" and "Hegota" hard forks. These changes aim to enhance scalability and gas efficiency, marking a strategic shift toward a more predictable biannual release schedule.

The first major update, the BPO2 fork, is set for January 7, 2026, which will raise the gas limit from 60 million to 80 million.

The gas limit increase is a crucial step in Ethereum's Layer-1 scaling strategy. By allowing more transactions per block, the network can process data faster without necessitating a complete overhaul of the protocol. This move aligns with Ethereum's long-term vision of maintaining a robust, secure, and decentralized settlement layer.

Prior to this, two essential client-level optimizations must be completed. On the execution layer, partial blob responses must be implemented, and on the consensus layer, the "max blobs" flag must be integrated. These adjustments will enable the gas limit increase and support enhanced scalability via off-chain data storage.

Key Upgrades in 2026

The "Glamsterdam" fork, scheduled for the first half of 2026, will focus on immediate scalability and gas efficiency improvements. This update will include features like Block Access Lists and Enshrined Proposer-Builder Separation (ePBS). ePBS aims to reduce censorship risks by separating the roles of block builders and proposers at the protocol level, further decentralizing the network.

Following the "Glamsterdam" upgrade, the "Hegota" fork will consolidate execution- and consensus-layer changes later in 2026. The name "Hegota" reflects its dual nature, combining the "Bogota" execution-layer update with the "Heze" consensus-layer update. This fork is expected to introduce features such as improved censorship resistance and enhanced interoperability among layer-2 solutions.

Developers are already planning the technical details for "Hegota," with scoping discussions set to begin on the January 8 All Core Developers call. The final feature list will be determined by late February, ensuring a smooth and structured implementation.

Scaling and Security Objectives

Ethereum's 2026 roadmap includes ambitious scaling goals. The "Glamsterdam" fork will introduce perfect parallel processing, allowing the network to execute multiple transactions simultaneously. This will significantly improve throughput and reduce latency.

In addition to scalability, security remains a top priority. The Ethereum Foundation is working toward achieving "128-bit provable security" by the end of 2026. This cryptographic standard is critical for institutional-grade financial applications and will ensure the network's resilience against sophisticated attacks. Milestones such as the "soundcalc" integration in February and alignment with the "Glamsterdam" hard fork in May will support this initiative.

The roadmap also includes plans for a 10% transition to zero-knowledge (ZK) proofs. This shift will allow a significant portion of Ethereum's validators to move from reexecuting transactions to verifying ZK proofs, further enhancing scalability and security.

Market and Technical Readiness

Ethereum's client teams are showing readiness to implement the gas limit increase in January 2026. Nethermind developer Kamil Chodola expressed optimism that the necessary client-level optimizations will be completed before the BPO2 fork activation. This includes partial blob responses on the execution layer and the "max blobs" flag on the consensus layer.

The Ethereum Foundation has also canceled two weeks of All Core Developers calls in December to allow for holiday breaks. Developers will reconvene on January 5 for a makeup call, ensuring that all teams remain on schedule for the upcoming upgrades.

Implications for Investors

The upcoming upgrades have significant implications for Ethereum investors. The gas limit increase and "Glamsterdam" fork will enhance transaction throughput and reduce costs, making the network more attractive to developers and users. This could lead to increased demand for Ethereum-based applications and a broader adoption of decentralized finance (DeFi) services.

However, analysts caution that the network's performance will depend on the successful implementation of these upgrades. Fundstrat's cautious outlook suggests that Ethereum could face short-term volatility, with prices potentially dropping to $1,800–$2,000 in the first half of 2026 before a potential rally in the second half. Thomas Lee, chairman of BitMine and head of research at Fundstrat, believes Ethereum is undervalued at $3,000 and could hit a new all-time high in January 2026.

Risks to the Outlook

Despite the promising roadmap, several risks could impact Ethereum's 2026 upgrades. Technical delays in client implementations or unexpected challenges during the BPO2 fork could push back the gas limit increase. Additionally, the success of ZK-based solutions and the transition to a more parallel processing model will depend on widespread adoption and continued research support.

Security remains a critical concern, particularly as the network moves toward ZK proofs. Any vulnerabilities in the cryptographic protocols could undermine confidence in the network's security model. The Ethereum Foundation's focus on 128-bit security is a strong step, but continuous monitoring and updates will be necessary.