Vitalik Buterin, one of the co-founders of Ethereum, has suggested a “modest” boost in the gas limit to improve the Ethereum network’s potential throughput. In a Reddit ask-me-anything (AMA) hosted by the Ethereum Foundation’s research team, Buterin highlighted that the gas limit has remained unchanged for nearly three years, marking the longest period without a protocol increase in Ethereum’s history.
Vitalik Buterin on Ethereum Gas Fees
During the AMA session, Buterin responded to a question by stating his belief that implementing a modest gas limit increase at this point would be reasonable. He pointed out the historical context, noting that the last increase occurred around late 2021 with the introduction of EIP-1559. Although this increase effectively doubled the gas limit, it only led to a roughly 9% rise in average usage.
Buterin then put forward the idea of setting the gas limit at approximately 40 million, which represents a 33% increase from the current 30 million gas limit as reported by Etherscan. He justified this suggestion by suggesting that allocating the gains from Moore’s Law after 2021 between increased capacity and improved syncing and verification processes would warrant such an adjustment.
The Ethereum gas limit is a critical parameter that influences the network’s ability to handle transactions and execute smart contracts. Buterin’s proposal aims to strike a balance between accommodating the growing demand on the Ethereum network and ensuring efficient syncing and verification processes.
As Ethereum continues to evolve and undergo network upgrades, decisions regarding parameters like the gas limit are crucial in maintaining a healthy and scalable blockchain ecosystem. This proposal for a modest increase aligns with ongoing efforts to optimize Ethereum’s performance and adapt to changing demands.
Ethereum Gas Fees Surge Again, Averaging Around 35 Gwei Amid Increased Network Activity
Gas prices, which determine the cost of transactions on the Ethereum network, have experienced a significant increase and are currently averaging around 35 gwei or approximately $1.89, as reported by Etherscan. This surge in gas prices has been noticeable since the start of 2024, with higher fees particularly affecting complex smart contract operations.
Ethereum gas fees reached a peak of 150 gwei in May 2023, during the NFT craze. The scalability debate gained renewed attention in November 2023 as fees surged once again, driven by increased activity related to NFTs. Data from Ycharts indicates a substantial 141% rise in Ethereum gas fees over the past year, currently reaching a fee of 0.9084 USD per transaction.
The increasing fees on the Ethereum network have prompted users to explore alternative solutions, with layer-2 solutions like Arbitrum becoming popular due to their promise of faster and more cost-effective transactions. Ethereum’s modular approach to scalability may take time to fully materialize, pushing users to seek more immediate alternatives.
One potential solution to address the issue of high fees is the EIP-4844 upgrade, designed to make it more affordable to send layer-2 data to the mainnet using blobs. The EIP-4844 upgrade is expected to go live in the first half of 2024.
From a price perspective, Ethereum recently broke through the $2,130 resistance level, which had held for over a year. However, momentum has slowed down, and the price is currently consolidating below the $2,600 level.
