Ethereum News Today: Ethereum Upgrades to Spur 10,000 TPS, Boost Institutional Appeal

The Ethereum core development team has finalized technical specifications and launch windows for two major protocol upgrades scheduled for 2026. These updates, known as the Glamsterdam and Hegota upgrades, mark a shift toward a more predictable and stable release cycle for the blockchain platform. The changes aim to address long-standing challenges like network congestion, scalability, and decentralization.

The first of the two, the Glamsterdam upgrade, is set for the first half of 2026 and focuses on improving the execution layer's efficiency. Key features include the implementation of Enshrined Proposer-Builder Separation, which is expected to mitigate risks related to maximum extractable value and centralized censorship. This upgrade also introduces Block Access Lists, a foundational step toward enabling parallel transaction processing.

Glamsterdam represents a significant shift in Ethereum's architecture, moving from a single-threaded state machine to a model that allows independent transactions-such as token transfers or decentralized exchange swaps-to be executed simultaneously. This change could increase the network's theoretical throughput toward 10,000 transactions per second by the end of 2026. The upgrade is designed to optimize how the Ethereum Virtual Machine interacts with hardware, ensuring high-speed performance without compromising the network's decentralized nature according to technical documentation.

Toward Parallel Processing and Higher Throughput

The introduction of parallel execution is a critical step in Ethereum's scaling strategy. By enabling multiple transactions to be processed simultaneously, the network can reduce gas spikes and improve user experience during high-demand periods. Ethereum developers estimate that these changes will make the network competitive with centralized settlement systems, a milestone that could attract more institutional-grade financial applications to the platform.

The implementation of Enshrined Proposer-Builder Separation is another key innovation. This protocol-level change moves block-building logic into the core code, reducing reliance on centralized relays and decentralizing the block production process. It is also expected to create a more level playing field for validators, as research shows the upgrade decouples block validation from execution, making zero-knowledge proof verification more incentive-compatible for validators.

State Bloat Mitigation with Hegota and Verkle Trees

Scheduled for the second half of 2026, the Hegota upgrade will focus on addressing state bloat, a long-standing issue that increases the storage burden on node operators. The upgrade will introduce Verkle Trees, a more efficient data structure that will replace the current Merkle Patricia Trees. This transition is part of "The Verge" phase of Ethereum's roadmap and will enable the creation of smaller cryptographic proofs, facilitating the development of stateless clients according to financial reports.

Stateless clients will allow users to verify the entire blockchain without storing hundreds of gigabytes of historical data. This change is expected to reduce the storage requirements for node operators by approximately 90%, making it easier for individual participants to run full nodes. By lowering hardware barriers, Hegota will strengthen the network's censorship resistance and ensure that Ethereum remains accessible to a broad user base as its state continues to grow according to analysis.

Market Implications and Developer Roadmap

The Ethereum upgrades are expected to have far-reaching implications for both the network and the broader cryptocurrency ecosystem. For DeFi protocols like Mutuum Finance, which is nearing completion of its Phase 6 development, the upgrade could create a more stable and predictable environment for structured lending and borrowing applications. As Ethereum's execution and consensus layers evolve, developers are also preparing for new opportunities in decentralized finance, real-world asset tokenization, and high-frequency trading.

In the broader market, Ethereum's progress toward 10,000 transactions per second has already sparked optimism among investors. On-chain data shows rising Ethereum network activity, with active addresses nearly doubling in a week and exchange inflows increasing. According to market analysts, successful implementation of the 2026 upgrades could help ETH reclaim a more favorable price trajectory, especially if institutional adoption continues to grow. However, some caution is warranted, as the success of these upgrades depends on achieving consensus among developers, client teams, and the wider Ethereum community.