The Ethereum validator community has voted to raise the blockchain's gas limit to 45 million units, enhancing network capacity and potentially impacting market dynamics.
Community-Driven Gas Limit Increase
Ethereum's validators successfully voted to raise the gas limit to 45 million units. Almost 50% of the stake participated in the vote, indicating active validator involvement in this scaling effort. The increase, driven by the community under the slogan 'pump the gas', aims to enhance network performance and transaction efficiency.
Impact on Throughput and Market
Immediate effects include a rise in transaction throughput from approximately 15 to nearly 18 transactions per second. This increased activity has coincided with a 54% surge in ETH prices, currently trading at $3,755. These network improvements enhance Ethereum's utilization for DeFi protocols and ERC-20 tokens.
Long-Term Benefits and Layer 2 Dynamics
Prior increases showed similar improvements in network throughput. The Ethereum community welcomes this change, anticipating long-term advantages despite short-term challenges. Potential outcomes include further financial gains for Ethereum and its ecosystem, which might shift dynamics for Layer 2 solutions.
Overall, the increase of the gas limit to 45 million units marks a significant step for Ethereum, confirmed by a positive market response and performance improvements.
