Ethereum Increases Gas Limit to 33M Ahead of Pectra Upgrade

The Ethereum community was recently debating sporadically over the increase of the gas limit. Coinfomania supports the increase of limit, primarily as it resonates with the demand of Ethereum users.

Cointelegraph reported on March 5 that the Ethereum community is discussing increasing the gas limit once again. The move is being spearheaded by Coinfomania, which is garnering support for the initiative. The goal is to provide more opportunities for over-the-counter transactions.

According to Cointelegraph, the effort has already received support from several researchers, who believe that it is part of the organic growth trend and that it will strengthen the network's capacity in the coming days.

Last week, a tweet from Ethereum stated that it is “prepared to face this change” and that it is a “timely move to enhance” the token's “scalability.”

Gas Limit Surge

The Ethereum community has already agreed to increase the gas limit for its network. It was previously capped at 30M, but it has now been raised to 33M.

Since 2021, there has been no adjustment to this limit. However, this first gas limit adjustment under ETH's PoS system is likely to pave the way for more frequent adjustments in the future.

What Prompted the Change?

A gas limit increase was proposed by Ethereum to its users. However, the idea gained steam when more than 50% of validators quickly supported the adjustment. New traders may be curious about what a gas limit increase entails for them.

The token uses a unit called gas to gauge the computational work needed for transactions or contract functions. Each transaction incurs a gas cost, which is deducted from the users. It serves as a payment for computational effort used during their activities.

Users may wonder why the community is advocating for a higher gas limit. Now that the gas limit has been increased, the operating costs of Ethereum will indeed rise slightly.

However, there is a reason why supporters were in favor of the change. As Ethereum gains more market dominance, users prefer to make large-scale investments. They demand a greater volume of real-time transactions. If gas costs increase, Ethereum can handle more transactions, which will ultimately benefit investors.

Future Outlook

On Sunday, Ethereum reached one of its lowest points to date. In comparison to Bitcoin, ETH has not fallen this low since 2021.

The value of one token has decreased by 0.03 BTC in the past month, which is nearly 50% lower than it was a year ago.

However, the upcoming Pectra upgrade will have a significant impact on its Layer 2 token networks by doubling their capacity. It will be interesting to see if Ethereum recovers or continues on the same path.