The Ethereum network has increased its gas limit to 32 million units, marking the first change since the transition to Proof-of-Stake consensus. The trading community discusses potential changes and impacts of this decision.
Development of Gas Limit in Ethereum Network
The Ethereum network has increased its gas limit from 30 to 32 million units for the first time since 2021. Previously, the gas limit was doubled from 15 million to 30 million units in 2021. The gas limit determines the maximum amount of gas that can be used by all transactions within a single block.
Consequences of Increasing the Gas Limit
Increasing the gas limit allows for more transactions per block, which can enhance network efficiency, reduce fees, and decrease congestion. However, larger block sizes might require more advanced hardware for validators, potentially impacting the decentralization and security of the network.
Impact of Macroeconomic Factors on Ethereum Market
Yesterday, the price of Ethereum dropped to $2,160 after Donald Trump's announcement of tariffs on Canada and Mexico, causing market panic. However, the price rebounded after the announcement of a temporary suspension of tariffs. Many market analysts attribute these price fluctuations to this event.
The increase in the Ethereum gas limit provides opportunities for enhanced network efficiency but requires careful consideration of security and decentralization. Market conditions and macroeconomic factors significantly influence Ethereum's price.
