Understanding Ethereum’s BPO Fork: Impact on ETH's Future by 2026

As Layer 1 (L1) blockchains evolve, the demand for decentralization increases. Consequently, "scalability" has emerged as a top focus for developers as these networks strive to manage more data while ensuring security remains intact. To achieve this goal, the introduction of an additional layer is crucial.

Key Takeaways

Ethereum's BPO fork increases blob limits, enhancing scalability for Layer 2s.
Higher usage of L2s positively impacts Ethereum's mainnet through fee distribution.
The upgrade enables L2s to grow without undermining Ethereum’s economic structure.
Current on-chain activity demonstrates robust growth despite short-term revenue fluctuations.

Ethereum’s BPO fork: How it will shape ETH’s 2026 prediction

In the case of Ethereum [ETH], this additional layer comes in the form of Layer 2 (L2) solutions like Arbitrum [ARB], which enable developers to create decentralized applications (dApps) without incurring high fees. Against this backdrop, Ethereum's latest BPO fork is a significant upgrade.

Ethereum

Source: X

Per the official announcement, the fork increased the blob limit from 15 to 21, providing Ethereum-based L2s with more capacity to post data each block. Simply put, this enhancement translates to improved scalability and reduced costs for L2 users.

Why This Upgrade Matters

Why is this important? L2s do more than just scale Ethereum; they also contribute to its economic framework. As L2 adoption rises, a portion of the fees paid for settlements is redirected to Ethereum's mainnet.

Thus, this upgrade represents more than a mere improvement in scalability. It strengthens Ethereum's strategy to channel activity to L2s while still capturing value at the foundational layer. When examining on-chain activity, it becomes evident that this recent fork is indeed a strategic triumph.

Enhancing L2 Scalability Without Compromising Ethereum's Economy

In the short term, the impact of Ethereum's 2025 upgrades was somewhat negative.

For instance, the fee structure changed due to these consecutive upgrades, resulting in lowered network fees, which led to a revenue decrease of about $100 million for ETH, with L2 earnings dropping approximately 53%. Nevertheless, Ethereum continues to roll out forks.

The main reason behind this? Network utilization. As illustrated in the chart below, the total value locked (TVL) in L1 applications has surpassed $300 billion, indicating that both activity and adoption are still increasing, compensating for lost revenue and motivating developers.

Ethereum

Source: Token Terminal

Importantly, this is where the recent BPO fork becomes relevant. With Ethereum already demonstrating robust utilization, the increased blob limit provides L2s with additional room to post data per block, thus facilitating greater activity. The outcome? A higher volume of data processed enables Ethereum to regain lost revenue.

In summary, this strategic choice allows L2s to scale without damaging Ethereum's economic framework, establishing a potent feedback loop where more data translates to increased revenue, which then inspires further developer activity.

Final Thoughts

By implementing the BPO fork, Ethereum is forging a path that positions its fundamentals strongly for the upcoming market cycles, ensuring that both scalability and economic viability are prioritized.