Ethereum’s Transaction Throughput Increase
On Sunday, Ethereum experienced a noticeable rise in transaction throughput, owing to an increase in the network’s gas limit, which now stands at over 37.3 million units, up nearly 3% from the previous week’s figures. This adjustment marks the first major uplift since February when the limit was raised from 30 million to 36 million units.
Support for Further Increases
With validators signaling their support for a further increase to 45 million units, the platform aims to enhance scalability and lower transaction costs for users.
Transaction Throughput Improvement
Notably, the Ethereum network achieved a throughput of almost 18 transactions per second (TPS) over the weekend, a significant improvement from around 15 TPS prior to the last adjustment in gas limits, as reported by Chainspect. The recent surge in gas limit and TPS is a direct result of a grassroots initiative dubbed the “pump the gas” campaign, which has garnered backing from nearly half of all staked Ether validators.
Vitalik Buterin noted that around 50% of staked Ether holders are in favor of increasing the gas limit to 45 million units, with current support recorded at 47.2%, according to GasLimits.pics.
Understanding Gas in Ethereum
The concept of gas in Ethereum refers to the fees associated with executing transactions or smart contracts. Each block has a defined gas limit, dictating the maximum fee that can be spent on blockchain activities. The call for raising the gas limit initially emerged in March 2024, targeting an increase from 30 million to 40 million, with the intent of alleviating transaction fees on the network.
The ongoing campaign is underscored by advancements in the Geth Ethereum node client, which now includes optimizations for minimizing the risks associated with these scaling adjustments, according to Buterin.
Growth in Ethereum Activity
In addition, Ethereum’s overall activity has shown robust growth, with the number of daily transactions climbing from around 1.1 million in April to approximately 1.4 million recently, as outlined by Etherscan. This uptick in activity correlates with the rising price of Ether, which has surged an impressive 54% in the past month alone, peaking briefly above $3,800 on Sunday— a seven-month high.
The rising interest from corporate treasuries and exchange-traded funds has contributed to this price climb, further demonstrating the growing interest in Ethereum’s capabilities and its financial prospects.
