Ethereum’s Gas Limit Rises as Price Nears $4,000
Key Takeaways
• Ethereum’s gas limit has increased to 37.3 million, with nearly half of validators supporting a further rise to 45 million.
• The higher capacity allows more transactions per block but raises concerns about network strain and decentralization.
• Geth v1.16.0 reduces archive node storage requirements from 20+ TB to 1.9 TB, improving accessibility and resilience.
• Major wallets acquired over $279 million in ETH via FalconX, Galaxy Digital, and Binance, reflecting renewed whale interest.
• SharpLink now holds 157,140 ETH after adding $17.4 million in a single day.
• ETH spot ETFs attracted $2.2 billion in net inflows over five trading days, signaling surging institutional demand.
Gas Limit Expansion Signals Network Scaling
Ethereum is taking a notable step toward greater scalability. According to co-founder Vitalik Buterin, the network’s gas limit has already increased to 37.3 million units. Nearly 50% of stake is now signaling support to raise the cap to 45 million.
This adjustment expands the number of operations that can be included in each block, boosting throughput and allowing more complex smart contracts to execute. However, the added computational load raises important questions about decentralization. If hardware requirements increase, smaller node operators may struggle to keep up, potentially weakening the network’s distributed structure.
In response, Buterin linked this gas limit rise to recent client improvements that ease the burden on node operators. Most notably, Geth version 1.16.0 introduces a new archive mode based on PBSS (Partial Block State Storage), dramatically reducing disk space requirements. Instead of needing over 20 terabytes, archive nodes can now operate with just 1.9 terabytes of storage.
This update lowers the barrier to entry for maintaining full nodes, preserving decentralization while supporting a more capable network. Ethereum developer Marius Van Der Wijden emphasized that the change enables users to query historical blockchain data—such as checking balances at specific blocks—which is critical for developers and validators. However, generating cryptographic proofs for historical states is not yet supported.
Institutional Momentum Pushes ETH Toward $4,000
As the network improves, Ethereum is also gaining traction in the market. On July 20, analytics firm Lookonchain reported that two newly created wallets acquired 58,268 ETH—worth approximately $212 million—via FalconX and Galaxy Digital.
Another large-scale purchase followed on Binance, where a wallet accumulated 13,462 ETH at a price of $3,714 per token, valued at roughly $50 million. These coordinated moves suggest growing confidence from high-net-worth investors and institutions.
SharpLink, the largest corporate holder of Ethereum, continued its accumulation by adding 4,904 ETH in a single day. Its July purchases now total 157,140 ETH, with an average buy-in price of $3,136. At current market levels, that position is worth nearly half a billion dollars.
Adding further fuel to the rally, ETH spot ETFs are seeing historic demand. Over just five trading days, they pulled in $2.2 billion in net inflows—more than double the $1 billion from the previous week. This sharp rise signals that traditional financial institutions are increasing their exposure to Ethereum amid rising optimism about its long-term potential.
A Convergence of Technology and Capital
Ethereum is now benefiting from the alignment of technical progress and investor interest. The rising gas limit expands network capability, while the Geth upgrade ensures that the network remains accessible and decentralized. At the same time, deep-pocketed players are returning to ETH in force—via both direct purchases and ETF allocations.
With the price now approaching the $4,000 threshold, Ethereum is entering a critical phase. Whether it breaks above that level depends on continued buying pressure, market sentiment, and macroeconomic conditions. But one thing is clear: Ethereum’s role as a foundational asset in the digital economy is strengthening again.
