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Degen Chain L3 leads Ethereum TPS rankings

Published

2 weeks ago

April 19, 2024

In comparison to Ethereum and Base, where the average transaction values are $1,867 and $170, respectively, Degen Chain sees a notably lower average transaction value of $0.27.

Over the past 24 hours, Degen Chain, a recent addition to the Ethereum ecosystem, has achieved the highest transaction per second (TPS) rate among Ethereum layer-3 networks.

On the last day, Degen’s transaction per second (TPS) count surged by over 68% to reach 37.12 TPS, surpassing its underlying blockchain, Base, which stood at 30.81 TPS, as reported by L2BEAT

Arbitrum One, Ethereum, and zkSync Era completed the top five rankings.

With Degen’s 35.7 TPS multiplied by 86,400 seconds in a day, the memecoin chain handled a total of 3.08 million transactions during that period.

Despite its high transaction throughput, Degen Chain recorded only $846,191 in trading volume over the last day, ranking it 41st out of 66 blockchains tracked by CoinGecko.

Despite its widespread use in measuring a blockchain’s scalability limits, transactions per second (TPS) is considered by many industry leaders as a flawed metric.

This is because TPS fails to account for the computational size of each transaction, which can vary significantly and impact the network’s overall performance. This oversight suggests that TPS alone may not fully represent a blockchain’s capacity or efficiency.

The Degen (DEGEN) token, which was initially conceived as a tipping token for users engaging with Degen’s channel on the Farcaster platform, has evolved beyond its original purpose.

It now serves as the primary currency of a memecoin that has transitioned into its own blockchain ecosystem.

According to CoinGecko, Degen Chain currently holds $4.1 million in total value locked, while the DEGEN token, which is only three months old, commands a market capitalization of $326 million.

Degen Chain, regarded as an ultra-low-cost, application-specific layer 3 blockchain, was constructed using Arbitrum Orbit and utilizes Base’s settlement layer, an Ethereum layer-2 scaling solution.