Ethereum's Strategic Scaling Path: Gas Limit Increases and the Road to Sustainable Throughput

Ethereum's journey toward scalable infrastructure has entered a pivotal phase, marked by targeted gas limit increases and the implementation of the Fusaka hard fork. These upgrades, coupled with innovations like PeerDAS and Blob Parameter Only (BPO) forks, are reshaping Ethereum's throughput capabilities and economic model. For investors, this evolution represents not just a technical milestone but a catalyst for long-term value accrual and institutional adoption.

The Gas Limit Expansion: A Foundation for Throughput Growth

In November 2025, Ethereum's block gas limit surged from 45 million to 60 million-a 33% increase in base-layer capacity-enabling the network to process over 32,950 transactions per second (TPS) in December 2025, a record high according to reports. This adjustment, supported by over 513,000 validators, was part of a year-long effort to balance scalability with decentralization as research shows. The increase was further amplified by technical improvements such as EIP-7623 and client optimizations, which ensured network stability while reducing congestion according to data.

Vitalik Buterin has emphasized that future gas limit increases will be "targeted and selective," potentially pairing capacity expansions with higher costs for computationally intensive operations to maintain efficiency according to analysis. This approach reflects Ethereum's strategic shift toward sustainable scaling, where throughput growth is decoupled from excessive resource consumption.

Fusaka and PeerDAS: Scaling Without Compromise

The Fusaka upgrade, launched in December 2025, introduced PeerDAS (Peer Data Availability Sampling), a groundbreaking mechanism that allows nodes to verify data availability by sampling small portions of blob data rather than downloading entire blocks according to the blog. This innovation reduces bandwidth and storage requirements for validators by up to 80%, enabling Ethereum to process up to 24 blobs per block initially, with a roadmap to scale to 128 blobs per block as per the roadmap.

PeerDAS also benefits Layer-2 (L2) rollups by slashing data costs by 40–95%, making Ethereum a more attractive platform for high-volume applications like decentralized exchanges and tokenized assets according to market analysis. For instance, Lighter, a zero-knowledge rollup focused on perpetuals trading, achieved 5,455 TPS in December 2025, contributing to Ethereum's ecosystem-wide TPS record according to reports.

Complementing PeerDAS, BPO forks allow dynamic adjustments to blob capacity based on L2 demand, eliminating the need for infrequent hard forks according to the blog. This flexibility ensures Ethereum can respond to real-time demand, stabilizing operational costs for institutions and enhancing predictability for developers.

Institutional Adoption: A Direct Correlation
The technical advancements of 2025 have directly fueled institutional interest in Ethereum. By late 2025, corporate treasuries and ETFs collectively held over 10 million ETH, valued at $46.22 billion, with public company holdings surging from 116,000 ETH in late 2024 to 1.0 million ETH by July 2025 according to reports. Major asset managers like BlackRock and VanEck have increased their ETH exposure, citing the Fusaka upgrade's role in improving Ethereum's cost structure and network performance according to analysts.

Ethereum's Total Value Locked (TVL) across DeFi protocols reached $72.64 billion in July 2025, while Layer-2 TVL hit $51.5 billion, signaling sustained capital allocation toward scalable infrastructure according to data. Staking has also become a cornerstone of institutional participation, with 36.8 million ETH staked by Q3 2025-30.4% of the circulating supply-offering 3–4% annual returns according to market reports.

The Road Ahead: From 60M to 150M and Beyond
Looking ahead, Ethereum's block gas limit is projected to expand further, potentially reaching 150 million in future upgrades according to forecasts. This trajectory aligns with the network's broader roadmap, including the Surge, Verge, and Purge phases, which aim to achieve full danksharding and 100,000+ TPS across L2 ecosystems according to the roadmap.

Analysts predict Ethereum's price could rise to $5,000 or higher in the short term, with long-term forecasts suggesting $10,000 by late 2026 if L2 adoption accelerates according to market analysis. These projections are underpinned by reduced L2 fees, increased transaction throughput, and regulatory clarity-such as the SEC's July 2025 ruling that ETH is not a security according to regulatory updates.

Conclusion: A Network Built for the Future

Ethereum's strategic scaling path-rooted in gas limit increases, PeerDAS, and BPO forks-has transformed it into a high-throughput, cost-efficient platform capable of supporting both retail and institutional demand. For investors, this evolution represents a unique opportunity: a blockchain that scales without compromising decentralization, while attracting capital from Wall Street and beyond. As Ethereum continues to refine its infrastructure, the network's ability to balance innovation with stability will remain a key driver of long-term value.