Ethereum gas limit rises toward 45M as ETH price eyes $4000

Ethereum’s base layer is undergoing a major performance shift, with the network’s gas limit rising toward 45 million units, a move that could meaningfully expand its transaction throughput.

According to a July 20 update on X from Ethereum (ETH) co-founder Vitalik Buterin, nearly 50% of stake is currently showing support for the change, with the limit already climbing to 37.3 million. On Ethereum, “gas” is the unit of computational expense needed to process transactions or smart contracts.

In order to maintain fair pricing of network resources and reduce spam, users pay for gas in ETH. The amount of total computation that can be contained in a single block is then determined by the gas limit.

Each transaction has a gas limit, which is typically around 21,000 for a normal transfer. The block gas limit sets the upper bound for the entire block, controlling its size and processing load. Ethereum’s block gas limit has increased in tandem with network demand and advancements in technology in the past.

When Ethereum switched to proof-of-stake in 2022, the limit remained constant for over three years. In February 2025, it was increased to 36 million, and it currently stands at about 37.3 million. A full increase to 45 million would allow for a much higher transaction volume and would mark a 50% increase over the pre-2025 ceiling.

Continuing client optimizations, such as Geth v1.16.0, which reduced archive node storage requirements from more than 20 terabytes to less than 2 terabytes, enabled this most recent push. These changes lessen the risk of centralization that can occur with larger block sizes, where more powerful hardware might be required to reliably run validator nodes.

Raising the gas limit has several advantages, including less traffic during peak hours and enhanced support for layer-2 integrations and decentralized applications. But it also brings about trade-offs. If not carefully managed, larger blocks could put pressure on smaller node operators, accelerate the growth of the blockchain, and increase the risk of synchronization delays or chain splits.

The timing coincides with a resurgence of market optimism. As of this writing, ETH is trading at $3,755, up 2% over the last day and 25% over the previous week. Analysts see the technical improvement and staking consensus around the gas limit as catalysts for a potential breakout above $4,000.