Degen Chain Tops Ethereum with Record TPS
In A Nutshell
Degen Chain, an emerging layer-3 network in the Ethereum ecosystem, has recently garnered attention for achieving the highest transactions per second (TPS) rate, surpassing its competitors including its foundation, Ethereum, and other layer-2 solutions like Base. Despite its impressive TPS performance, the average transaction value remains significantly lower than those on Ethereum and Base. This development raises questions about the efficiency and utility of using TPS as the sole indicator of a blockchain’s performance.
Degen Chain’s Remarkable TPS Achievement
Within the last 24 hours, Degen Chain has recorded a TPS rate of 35.7, indicating a 62% increase from the previous day. This rate not only surpasses Ethereum but also other notable blockchains within the ecosystem, according to data from L2BEAT. Despite processing over 3.08 million transactions in a day, the trading volume on Degen Chain was relatively low, ranking it 35th among 44 blockchains tracked by CoinGecko. The average transaction value on Degen Chain was reported as $0.27, in stark contrast to Ethereum’s $1,867 and Base’s $170.
The Debate Over TPS as a Performance Metric
The reliance on TPS as a measure of blockchain scalability and efficiency is increasingly scrutinized. Critics argue that TPS fails to account for the computational complexity and value of individual transactions. Comparing it to assessing the value of bills without considering their denomination, experts suggest that a more nuanced approach might be necessary to evaluate blockchain performance accurately.
The Evolution of Degen Chain
Originally starting as a memecoin, the DEGEN token has evolved beyond its initial purpose, now powering Degen Chain. This transition illustrates the potential for memecoins to develop practical applications and accrue social value within the ecosystem. Degen Chain represents a move towards application-specific, ultra-low-cost layer-3 blockchains, leveraging the settlement layer of Base and built with Arbitrum Orbit. Despite its recent launch, Degen Chain has locked in $4.1 million in total value, with the DEGEN token achieving a market capitalization of $326 million.
Implications for Layer-3 Applications
The success of Degen Chain underscores the growing interest in layer-3 solutions within the blockchain community. As platforms like Degen Chain demonstrate, layer-3 can offer scalable, cost-effective alternatives for application development, potentially paving the way for a new wave of blockchain applications.
Our Take
Degen Chain’s achievement in TPS marks a significant milestone in the evolution of layer-3 technologies within the blockchain ecosystem. While its low average transaction value highlights the limitations of using TPS as the sole metric for assessing blockchain performance, Degen Chain’s development points to the broader potential of memecoins and the innovative applications they can foster. As the blockchain community continues to explore the capabilities and limitations of layer-3 solutions, it will be crucial to develop more comprehensive metrics that accurately reflect the value and efficiency of these emerging technologies.
