TLDR
- Vitalik Buterin supports raising Ethereum’s gas limit from 37.3M to 45M to boost transaction capacity.
- Nearly 50% of Ethereum validators have signaled support for the proposed gas limit increase.
- Geth client update cuts archive node storage from 20TB to 1.9TB, easing validator participation.
- SharpLink and Bitmine now hold over 580K ETH, surpassing Ethereum Foundation’s treasury.
Ethereum is preparing for a key technical change as co-founder Vitalik Buterin supports raising the Layer 1 gas limit from 37.3 million to 45 million. This move could allow more transactions per block and boost network performance. However, Buterin has advised caution, saying the network must grow with care to avoid weakening its decentralized structure.
Ethereum Validators Back Gas Limit Increase as Network Prepares for Upgrade
Ethereum may soon see a boost in transaction capacity, as nearly 50% of validators have signaled support for raising the Layer 1 gas limit from 37.3 million to 45 million.
Vitalik Buterin, Ethereum’s co-founder, confirmed this growing consensus, stating the move could significantly increase the network’s throughput allowing more complex operations and higher volumes to be processed per block.
The gas limit defines how much computational work each block can contain, making this change a pivotal moment for scaling Ethereum.
The push for this increase has been promoted by grassroots campaigns like “pump the gas,” which frame it as a necessary response to growing network demand. Validators have the power to adjust the gas limit gradually by about 0.1% per block and nearly 48% of staked ETH is now aligned with the higher cap.
Almost exactly 50% of stake is voting to increase the L1 gas limit to 45m. The gas limit is already starting to increase, now at 37.3m. pic.twitter.com/omUKQHuBvz
— vitalik.eth (@VitalikButerin) July 20, 2025
Buterin emphasized that this effort is backed by years of engineering work and major improvements to Ethereum clients, especially the latest Geth upgrade, which reduced archive node storage requirements from over 20 terabytes to just 1.9 terabytes.
However, concerns remain among some in the community. Critics argue that raising the gas limit could place additional strain on hardware and discourage smaller, independent node operators.
This may unintentionally lead to greater centralization something Ethereum has long sought to avoid. Still, the momentum behind the proposal suggests strong interest in expanding the network’s capabilities while balancing decentralization.
Vitalik Buterin Urges Caution Highlights Risks of Rapid Scaling
Vitalik Buterin has cautioned that raising the gas limit is only one part of Ethereum’s long-term scaling plan. He said pushing Ethereum too fast could risk network health, and stressed the need for a balance between performance, security, and decentralization.
Speaking on Ethereum’s roadmap, Buterin noted that the new Geth PBSS (Partial Block State Storage) archive mode has been key to reducing validator storage costs. “This has made things safer and more manageable for solo validators,” he explained.
He also pointed out that Ethereum is not relying only on Layer 1 upgrades. Protocols like Proto-Danksharding and Pectra aim to improve Layer 2 rollups, which move activity off the main chain. These changes are expected to lower costs and improve efficiency across the entire Ethereum ecosystem.
While Buterin supports the gas limit increase, he has stressed that engineering must remain steady and informed. He warned that without proper planning, too much scaling could lead to central control and weaken Ethereum’s open access goals.
Institutional Interest Grows Amid Gas Limit Debate
At the same time, public companies are taking larger positions in ETH. SharpLink Gaming and Bitmine Immersion Technologies have now passed the Ethereum Foundation in ETH holdings. Together, they hold over 580,000 ETH worth more than $2.1 billion. Both companies are staking ETH for yield and treating it as a key treasury asset.
SharpLink has raised over $400 million to fund ETH purchases. The firm also publishes an “ETH-per-share” metric to connect traditional finance and decentralized systems. Bitmine, led by Tom Lee, is using mining revenue and options to grow its ETH reserves and aims to control up to 5% of ETH supply.
Their competition has drawn attention across the crypto space. Ethereum co-founder Joseph Lubin commented on the rivalry, calling it a mix of “cut-throat one-upmanship” and “potential collaboration.”
Ethereum’s price has responded to both the gas limit news and institutional buying. Over the past week, ETH has risen by over 25%, now trading near $3,800. Analysts suggest the rise is partly due to a possible short squeeze, with large bearish positions at risk if ETH reaches $4,000.
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