The upcoming Glamsterdam upgrade for Ethereum aims to improve how transactions are processed, how blocks are created, and how network resources are priced. This could significantly change the experience for users, rollup technologies, and block builders on the main Ethereum network. While the upgrade is expected around the third quarter of 2026, the key question isn’t simply whether transaction fees will decrease, but also if lower fees combined with larger block sizes will lead to an overall increase in network usage and revenue.
This article details the latest updates, explaining how the development plan aims to improve Ethereum’s ability to handle transactions and maintain network reliability. It also explores the potential impact on transaction costs (ETH fees), the amount of ETH being burned, and the financial models of Layer 2 networks. You’ll get a straightforward overview, helpful comparisons, and a useful guide for developers of decentralized applications and rollups as they prepare for these changes.
When possible, we refer directly to official Ethereum plans and test network updates to get a clear understanding of what to expect and when.
As a researcher, I’ve been looking into Glamsterdam, and it’s essentially built to handle more transactions and make block creation more reliable. This should, in theory, bring down the cost of individual transactions on Layer 1. It could also make more complicated transactions easier to process. However, lower costs per transaction don’t automatically mean everyone will pay less in ETH fees overall. Total demand still depends on how much the network is used, how much profit miners or searchers extract through MEV, and how rollups respond to these changes. If Glamsterdam allows for more activity – perhaps by making blocks bigger and improving how transactions are ordered – we might actually see *more* demand for block space, potentially offsetting the lower per-transaction costs, even as many users benefit from cheaper transactions.
- ePBS extends the data propagation window to about 9 seconds, a key enabler of larger blocks and parallel execution potential (ethereum.org (Glamsterdam)).
- Roadmap materials outline a post-upgrade gas-limit floor target near 200M gas per block, versus ~60M today, with 150M being used in testing while state pricing is tuned via EIP-8037 (ethereum.org (Glamsterdam)).
- Recent explainers place mainnet in Q3 2026 and discuss potential L1 fee reductions in the high-60% to high-70% range for some transactions (IG (investor explainer), June 16, 2026).
- Active devnet work in early–mid June 2026 underscores that tuning and calibration are in flight (ethpandaops).
What does Glamsterdam actually change under the hood?
Glamsterdam’s key feature is a new system called proposer-builder separation (ePBS, EIP-7732). This system clearly divides the roles of validators – those who create blocks – and builders, who put the block content together. A significant benefit of ePBS is that it gives the network more time – increasing it from about two seconds to nine seconds – to share larger blocks and process transactions more efficiently, preventing network congestion (ethereum.org (Glamsterdam)).
The development plan also indicates a goal of increasing the block gas limit to around 200 million gas after the upgrade—about 3.33 times the current limit of 60 million. During testing, developers are using a reference limit of 150 million to fine-tune how state pricing works. They’re considering EIP-8037 as a way to manage state growth, aiming for around 120 GiB per year, so applications that store a lot of data will reflect the true cost of increasing state size (according to ethereum.org at the Glamsterdam event).
Development on the network is moving quickly, with updates happening frequently. For example, one version was aimed for around June 4th, 2026, and the next was planned for mid-June. This fast pace shows the team is actively testing how blocks are created, shared, and priced during this period (ethpandaops).
Overall, these updates are designed to increase how much our network can handle while keeping data storage manageable – a challenge that has caused problems for many other fast networks. If implemented successfully, this will allow the network to process more transactions, lower transaction fees, and maintain its decentralized nature with a diverse group of participants.
How much could L1 fees drop—and for whom?
Recent market discussions suggest the main network launch is likely around the third quarter of 2026, potentially near the end of August. Once the network’s capacity increases and pricing adjustments are implemented, certain transaction fees on the primary layer (L1) could decrease significantly – estimates range from 65% to 75%. It’s important to remember these are just projections, not firm commitments, and actual fee reductions will depend on how complex transactions are, their priority level, and overall network traffic (source: investor update, June 16, 2026).
Ethereum’s design allows for larger blocks by increasing the time it takes for information to spread and setting a minimum gas cost of 200M gas. This should generally reduce transaction fees. At the same time, developers are experimenting with a gas limit of 150M and refining a new feature (EIP-8037) to control how much data is added to the blockchain (ethereum.org (Glamsterdam)).
However, gas fees still operate like a normal market. When demand is high – for example, during popular NFT launches, large transactions on Layer 2 networks, or fierce competition for MEV – users can still pay more to have their transactions processed quickly. Glamsterdam simply makes the system more efficient; it doesn’t eliminate the basic principles of supply and demand.
Dimension
Pre-Glamsterdam (today)
Post-Glamsterdam (expected)
Block gas baseline
~60M gas baseline
Targeted floor ~200M gas; ~150M used in testing
Block propagation window
~2 seconds
~9 seconds with ePBS
Execution room
Constrained payloads
Larger payload headroom; potential for more parallel execution
State growth policy
Existing pricing
EIP-8037 calibration to control state expansion
Typical L1 user fees
Variable, often spiky
May fall materially in normal conditions; still market-driven
Could cheaper blockspace hurt or help ETH fee demand?
Two key factors affect revenue: the cost of each transaction and the overall number of transactions. Glamsterdam is expected to lower transaction costs, but this could also encourage more activity – like new apps, increased use of Layer 2 solutions, and more complex on-chain interactions – which could ultimately *increase* total revenue. It’s common for people to think “lower fees” means “lower revenue,” but strategically increasing network capacity can actually handle more transactions and attract more users.
Ethereum’s system for burning ETH, called EIP-1559, also plays a role. When processing transactions, the base fee is destroyed, while tips go to the network validators. With the recent update (EIP-4844), data storage uses a similar burning system for a new type of data called ‘blobs.’ If Glamsterdam makes it easier for rollups and complex transactions on the main Ethereum network, the total amount of ETH burned will depend on how much activity comes from regular transactions versus blob usage, and how often there are periods of high demand.
Ultimately, ePBS could change how MEV (Maximal Extractable Value) is shared. By making block building more organized and predictable, it might reduce some current methods of extracting value, while also creating opportunities for new ones. The overall impact on transaction fees will likely depend on how competitive the block-building market becomes and whether innovations like preconfirmations attract more participants without creating risks of censorship.
Here’s a helpful tip: Instead of only looking at average gas prices, monitor a variety of metrics like how much ETH is being burned each day, the cost of blob transactions, how much builders are being tipped, and how long it takes to include transactions during busy periods. These combined indicators give you a more accurate understanding of how high demand for network space is, compared to just checking gas prices at one moment in time.
What should rollups and dapp teams do before mainnet?
Glamsterdam isn’t a simple, one-time event. Teams relying on consistent functionality – like bridges, perpetual swaps, NFT minting, or systems sensitive to MEV – should test their processes with increased gas costs and updated pricing before launching on the main network. Recent test networks in early and mid-June show that settings are still being adjusted, so consider any current estimates as approximate, not definitive (ethpandaops).
- Simulate with a 150M gas environment and stress-test batching logic; validate that oracles and gas estimators stay accurate at higher throughput (ethereum.org (Glamsterdam)).
- Re-evaluate storage-heavy designs under EIP-8037 assumptions; expect more precise costs for state growth.
- Update inclusion policies for preconfirmations and fallbacks; align user-facing SLAs with potential changes in latency variance.
- Benchmark bridge and settlement schedules against larger blocks; verify that fraud/validity windows and liquidity buffers still fit.
- Audit networking assumptions: a longer propagation window reduces orphan risk for big blocks, but edge connectivity still matters for builders and relays.
It’s surprisingly important to clearly explain how transaction costs work. Digital wallets and exchanges should let users know that while fees are usually low, they can temporarily increase when the network is busy. They should also remind people about ways to lower those costs, like combining transactions, using the network during quieter times, or utilizing Layer 2 solutions.
How might ePBS change builder, wallet, and MEV dynamics?
Ethereum’s design keeps those who propose new blocks separate from those who build them. This limits the ability of validators to unfairly maximize profits and encourages more competition among builders. Additionally, the nine-second time window for block propagation gives builders more breathing room to create larger blocks without network congestion, which could lead to fewer orphaned blocks (ethereum.org (Glamsterdam)).
This setup could lead to better markets for early transaction confirmations and reliable transactions, but only if implemented thoughtfully to prevent issues with censorship. Different builders might compete based on speed, privacy features, and how they handle failures. It’s crucial to monitor whether a few builders gain too much control, as this could compromise fairness and create new risks if one builder becomes dominant.
As an analyst, I’ve been following the development of ePBS, and it’s important to understand it doesn’t eliminate MEV – Maximum Extractable Value – but rather creates a more standardized system for handling it. We should anticipate ongoing discussions about how to best manage this, specifically focusing on things like whitelisting protocols, establishing fair practices around transaction ordering (‘backrunning’), and protecting everyday users. These protections are especially critical when network activity spikes, as retail orders and stablecoin transfers tend to be most affected.
Does Glamsterdam close the gap with high-throughput L1s?
Most Layer 1 blockchains focus on processing lots of transactions quickly, while Ethereum is building a system that’s flexible and scalable using a core layer plus ‘rollups’. Glamsterdam, an Ethereum upgrade, plans to significantly increase the network’s capacity – aiming for around 200 million gas per block with slightly slower transaction confirmation times – without making it too demanding on those running the blockchain. This is achieved through techniques like state-pricing and careful adjustments (ethereum.org/Glamsterdam).
It’s not simply a choice between Ethereum and other blockchains. While many developers value Ethereum’s security, established user base, development tools, and potential for scaling solutions, alternative chains can still provide a better experience for certain applications and sometimes offer lower transaction fees during peak times. If Glamsterdam’s improvements work as expected, the difference in cost and performance could become smaller, allowing Ethereum to maintain its strong decentralization – a key feature valued by businesses and regulators.
Developers need to consider where building their application will be most efficient in terms of cost, speed, and reaching users. While Ethereum, after recent upgrades, is becoming a more viable option, teams should still test their applications on different platforms before making a final decision.
Common Mistakes
- Assuming fees will only fall. In reality, a cheaper baseline can coexist with sharp spikes. Avoid hardcoding gas expectations; keep dynamic caps and user prompts.
- Ignoring state costs. If your design leans on permanent storage, model EIP-8037 sensitivity and plan pruning or compression to avoid runaway costs.
- Overlooking builder centralization risk. ePBS helps, but builder markets can still concentrate. Maintain multi-builder connectivity and fallback paths.
- Skipping devnet rehearsals. Parameter changes are being tuned in June; test with 150M reference conditions and verify estimator accuracy before mainnet.
- Equating lower L1 fees with lower burn. Track volume, blob usage, and MEV tips; the mix drives total fee demand and burned ETH, not price alone.
Stay updated on Glamsterdam’s development, including in-depth analysis and easy-to-understand explanations, by visiting Crypto Daily.
Frequently Asked Questions
Will existing smart contracts need changes for Glamsterdam?
Most smart contracts won’t need to be updated. The main changes involve improvements to the network itself – things like how blocks are created, increased capacity, and adjusted transaction fees. However, if a contract depends on very low gas costs or specific timing details, it’s a good idea to check that it will still work correctly with these larger block sizes.
Do node operators need different hardware?
You can anticipate a bit more demand on system resources due to bigger blocks and it may take slightly longer for updates to spread across the network. While Ethereum is designed for long-term, stable growth, those running Ethereum software should check the official recommendations as the final settings are confirmed, and make sure they have enough bandwidth and storage space available.
How should rollups update their fee oracles?
We’re planning updates to how our systems estimate transaction costs (oracles) based on the latest network fees, including gas prices and blob market data. After these changes go live, we’ll monitor performance for several weeks before making any further adjustments – it’s important not to react immediately. We will also build in safeguards to handle periods of high network activity or popular app usage, preventing slowdowns and ensuring a smooth experience.
What if Glamsterdam slips past Q3 2026?
Project timelines are subject to change based on feedback from our engineers. While we’ve previously mentioned a target of late 2026, delivering a secure product is our main focus (as discussed with investors June 16th). Don’t rely too heavily on specific integration dates, as these plans could shift.
Does ePBS eliminate MEV?
ePBS fosters competition between network builders and lowers some of the risks for those who validate transactions. While opportunities for Maximal Extractable Value (MEV) will still exist, they could become more evenly distributed and easier to use as the market adopts standard ways of confirming and including transactions.
Will NFTs and memecoins minting frenzies still clog the network?
While sudden increases in activity can still happen, a bigger block budget should lessen how bad traffic jams get during normal busy periods. Prices will still depend on demand, so popular mints can still cause higher fees, but they’ll start from a lower point than before.
How can I track whether fee demand is actually improving?
Keep track of how much ETH is being burned each day, average blob transaction fees, the portion of tips going to builders, how much value is moving from Ethereum to layer-2 networks, and how quickly transactions are included in blocks. These metrics combined can show if lower transaction costs are actually leading to more activity on the blockchain.
Read More
- USD THB PREDICTION
- PI PREDICTION. PI cryptocurrency
- USD MYR PREDICTION
- USD CHF PREDICTION
- USD BRL PREDICTION
- Brent Oil Forecast
- USD PHP PREDICTION
- USD HKD PREDICTION
- EUR MXN PREDICTION
- USD MXN PREDICTION
2026-06-18 12:28