Ethereum is raising the gas limit to increase processing capacity, while the price of ETH is also surging, attracting large capital inflows pushing the price towards the 4,000 USD mark.
The new gas limit allows each block to contain more transactions but also poses challenges regarding security and decentralization. Client upgrades along with inflows of capital help Ethereum maintain its leading position in the cryptocurrency industry.
MAIN CONTENT
Ethereum's Layer 1 gas limit has increased to 37.3 million with a trend of continuing to rise to 45 million.
The Geth 1.16.0 update reduces storage capacity for nodes, supporting decentralization more effectively.
Large capital inflows into ETH are pushing the price close to 4,000 USD, along with strong interest from whales and institutions.
What is the current gas limit of Ethereum and why has it increased?
Vitalik Buterin, co-founder of Ethereum, confirmed that the Layer 1 gas limit currently stands at 37.3 million and nearly 50% of stakers agree to raise it to 45 million. According to him, increasing the limit allows for processing more transactions and complex logic in each block, thereby expanding the network's power.
Increasing the gas limit also puts significant pressure on operating nodes, raising concerns that smaller operators may not be able to sustain, affecting decentralization and network security.
“Nearly 50% of stakers are voting to increase the Layer 1 gas limit to 45 million. The limit has already begun to rise, reaching 37.3 million.”
Vitalik Buterin, co-founder of Ethereum, July 20, 2025
What improvements help support increasing the gas limit?
The Geth 1.16.0 client version released on June 27, 2025, is an important step, reducing the storage capacity of archive nodes from over 20 terabytes to 1.9 terabytes. This improvement allows many small node operators to maintain a full blockchain history, supporting decentralization and network performance.
Ethereum developer Marius Van Der Wijden commented that the PBSS feature in Geth 1.16.0 makes querying historical state easier, an important factor for DApps, validators, and research.
“Geth v1.16.0 has finally released the PBSS archive node, with a capacity of about 1.9 TB instead of over 20 TB as before. Querying historical state is now feasible.”
Marius Van Der Wijden, Ethereum developer, July 17, 2025
What does the sharp rise in Ethereum's price have to do with the gas limit?
Amidst rising gas limits and network upgrades, Ethereum's price is also soaring, heading towards the 4,000 USD mark – a level not seen recently. Data from Lookonchain shows two large wallets purchased a total of 58,268 ETH (~212 million USD) across FalconX and Galaxy Digital platforms.
At the same time, SharpLink, the company holding the largest amount of ETH, confirmed the purchase of an additional 4,904 ETH (~17.45 million USD), bringing the total holdings in July to nearly 157,140 ETH (~493 million USD). ETFs focused on ETH also recorded a record inflow of 2.2 billion USD in the last 5 trading days.
How is the balance between expanding capacity and security being achieved?
Increasing the gas limit helps expand processing capabilities, but Ethereum is also responsible for protecting decentralization and security. Client updates like Geth 1.16.0 reduce node storage capacity, allowing more small operators to maintain full nodes, encouraging sustainable decentralization and security.
Co-founder Vitalik Buterin stated that developers are focusing on improving client efficiency to allow Ethereum to withstand higher temperatures, reducing pressure on operating nodes while increasing capacity.
This balance helps the network not only process larger transaction volumes but also maintain trust and decentralization – key factors in the long-term value of Ethereum.
Frequently Asked Questions
What is the Ethereum gas limit?
The gas limit is the maximum amount of work in each block, determining the number of transactions and the complexity of smart contracts that can be processed, directly affecting gas fees and scalability.
Does increasing the gas limit affect small nodes?
It may exert greater storage and operational pressure, making it difficult for small nodes to sustain, thereby posing a risk of reducing decentralization if there are no supportive technical solutions.
What are the highlights of Geth 1.16.0?
This version reduces the storage capacity required for archive nodes from over 20 TB to 1.9 TB through PBSS, allowing many node operators to maintain full history.
Why has the price of Ethereum surged recently?
With significant capital inflows from whales and institutions, along with network upgrades improving performance, ETH has attracted strong investment interest, pushing the price close to the 4,000 USD mark.
Does increasing the gas limit solve high gas fees?
This helps reduce short-term congestion, but gas fees may still rise again if transaction volume exceeds block capacity, requiring Layer 2 scaling solutions and other optimizations.
Source: https://tintucbitcoin.com/ethereum-tang-gioi-han-gas-huong-toi-4-000-usd/
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