Bitwise "Ethereum (ETH) Pusaka upgrade strengthens payment layer"

JH Kim

Summary

Bitwise said that the Ethereum (ETH) Pusaka upgrade will strengthen the on-chain financial payment layer role.
The upgrade is expected to lead to increased transaction throughput and reduced fee burden through mainnet capacity expansion and validator efficiency improvements.
Bitwise projected that raising the layer-1 gas limit could lead to about a doubling of transaction throughput over the next year.

As the Ethereum (ETH) Pusaka upgrade takes place on the 3rd (local time), an assessment has emerged that this upgrade will strengthen Ethereum's on-chain financial payment layer role. Bitwise forecast an increase in transaction throughput and a reduction in fee burden based on mainnet capacity expansion and validator efficiency improvements.

On the 3rd (local time), according to crypto-specialized media CoinDesk, Bitwise said in a report that the Pusaka upgrade will raise the Ethereum mainnet's processing capacity and strengthen its function as on-chain payment infrastructure. Bitwise explained that this change could increase network operational efficiency and, as a result, act to lower users' on-chain activity costs.

Bitwise expected mainnet capacity to increase with the Pusaka upgrade. Specifically, with the layer-1 gas limit per block raised to 60 million, transaction throughput would expand and fee burden could decrease. They said such structural change could form the basis for strengthening Ethereum's payment layer role.

They also said validator efficiency is expected to improve. Bitwise added that if network processing efficiency improves through the Pusaka upgrade, performance could be optimized to handle more transactions on the same infrastructure. This was cited as a factor that strengthens Ethereum's role as an on-chain financial payment layer.

Bitwise also presented the projected increase in transaction throughput. The report forecast that, as an effect of raising the layer-1 gas limit per block, transaction throughput could increase about twofold over the next year. It explained that if the throughput increase materializes, network congestion would ease and fee burden could also decrease.

Bitwise's assessment of the Pusaka upgrade is noteworthy in that it aligns with the trend of Ethereum expanding as payment and settlement infrastructure. Bitwise pointed to mainnet capacity expansion, validator efficiency improvement, and raising the layer-1 gas limit as key changes, and assessed that Ethereum's on-chain financial payment layer role could be strengthened.