Degen Chain, an emerging Ethereum layer-3 network, has set a new record in transaction processing speed, achieving the highest transaction per second (TPS) rate within the Ethereum ecosystem.
Over the past 24 hours, Degen Chain’s TPS soared by 68.56% to an impressive 37.12, outperforming Base, its layer-2 counterpart, which recorded a TPS of 30.81, according to L2BEAT.
Degen Chain Achieves Fastest TPS in the Ethereum Ecosystem
This feat places Degen Chain above other major blockchain contenders like Arbitrum One, Ethereum, and zkSync Era, marking it a standout performer. Considering a TPS of 37.12, Degen Chain processed 3.2 million transactions in one day.
Whereas in the past 30 days, it processed 43.41 million transactions, the fourth highest after Base, Linea, and Arbitrum One.
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However, Degen Chain’s economic impact tells a different story. According to CoinGecko, trading volume over the same period was only $788,813. Furthermore, this gives the average transaction value on the Degen Chain just around $0.24.
In contrast, Ethereum and Base recorded significantly higher transaction values of $2,166 and $172, respectively. This stark contrast raises questions about the economic utility of Degen Chain’s high TPS.
Critics of the TPS metric argue that it overlooks transactions’ economic and computational significance.
“[It] is a bit like counting the number of bills in your wallet but ignoring that some are singles, some are twenties, and some are hundreds,” Steven Goldfeder, co-founder at Offchain Labs, said.
This analogy highlights the importance of considering both the quantity and quality of transactions when assessing blockchain performance.
Originally, the DEGEN token, which powers the Degen Chain, was a tipping token on Farcaster, a decentralized social media platform. The token facilitated small transactions among users, which significantly contributed to its popularity. This popularity prompted the development of the Degen Chain.
Currently, the total value locked on the Degen Chain stands at $4.5 million. Additionally, the DEGEN token, only three months old, already boasts a market capitalization of $385.2 million. Notably, it has increased by 27.62% in the past 24 hours.
Read more: 7 Best Base Chain Meme Coins to Watch in 2024
Designed as an ultra-low-cost, application-specific layer-3 blockchain, Degen Chain uses Arbitrum Orbit technology and leverages the settlement layer of Base, enhancing its scalability.
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