Ethereum co-founder Vitalik Buterin outlined a shift in the network’s scaling approach for 2026. Instead of uniformly increasing capacity across all operations, Ethereum will focus on “targeted optimization.”
This means raising the gas limit by up to 5× while simultaneously increasing gas costs by 5× for operations that are resource-intensive.
Operations affected include creating new storage slots using SSTORE, certain other SSTORE operations, precompiled contracts (excluding elliptic-curve computations), CALLs to large contracts, complex arithmetic instructions, and calldata.
Buterin emphasized that this strategy aims to increase overall throughput while keeping inefficient operations from overloading network nodes.
He described the upcoming changes as part of a broader trend toward “continued growth but more targeted, less uniform growth” for Ethereum. By selectively repricing costly operations, the network hopes to balance capacity expansion with the practical limits of node processing.
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Just a year after Ethereum’s community pushed for higher gas limits, the network has reached a 60 million block gas limit, a twofold increase from the previous year. Buterin credited client teams, researchers, and community contributors for mobilizing the effort.
Researcher Andy Yang highlighted the milestone, questioning whether future gains will come primarily from protocol-level changes, such as gas repricing or code merkleization, or from improvements in client performance.
The implication is that Ethereum’s scalability will increasingly depend on both software innovation and infrastructure optimization.
Ethereum developer Toni Wahrstatter offered insight into upcoming enhancements. BALs (Block Acceleration Layers), assuming 8 threads, could provide an 8× scaling improvement, while ePBS (EIP-7732) might add another 3–4×.
However, state growth and data bandwidth could emerge as bottlenecks if not addressed through repricing or client optimizations.
Wahrstatter noted that pushing toward a 500 million gas limit, a potential target after the upcoming “Glamsterdam” upgrade, would make state churn and absolute size key limiting factors. Without optimizations unlocked by BALs, syncing could also become a concern.
This strategic combination of selective gas limit increases, repricing inefficient operations, and client-level improvements positions Ethereum for scalable growth in the coming year while maintaining node stability.
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BitGo’s move creates further competition in a burgeoning European crypto market that is expected to generate $26 billion revenue this year, according to one estimate. BitGo, a digital asset infrastructure company with more than $100 billion in assets under custody, has received an extension of its license from Germany’s Federal Financial Supervisory Authority (BaFin), enabling it to offer crypto services to European investors. The company said its local subsidiary, BitGo Europe, can now provide custody, staking, transfer, and trading services. Institutional clients will also have access to an over-the-counter (OTC) trading desk and multiple liquidity venues.The extension builds on BitGo’s previous Markets-in-Crypto-Assets (MiCA) license, also issued by BaFIN, and adds trading to the existing custody, transfer and staking services. BitGo acquired its initial MiCA license in May 2025, which allowed it to offer certain services to traditional institutions and crypto native companies in the European Union.Read more