Degen Chain L3 Emerges as Top TPS Performer in Ethereum Ecosystem

Degen Chain, the latest addition to Ethereum’s layer-3 networks, has taken the lead in transaction processing speed within the Ethereum ecosystem, surpassing other notable contenders.

Over the past 24 hours, Degen Chain has achieved an impressive transaction per second (TPS) rate of 35.7, marking a remarkable 62% surge compared to the previous day. This places it ahead of its foundational blockchain, Base, which recorded a TPS of 29.7, as reported by L2BEAT.

Joining Degen in the top five TPS rankings are Arbitrum One, Ethereum, and zkSync Era, underscoring the network’s robust performance.

Calculating Degen Chain’s TPS against the 86,400 seconds in a day reveals a staggering 3.08 million transactions processed within this timeframe. However, despite its high transaction volume, Degen Chain has seen relatively modest trading activity, with a total trading volume of $819,600 in the last day, ranking 35th among 44 tracked blockchains by CoinGecko.

Remarkably, the average value per transaction on Degen Chain stands at a mere $0.27, significantly lower compared to Ethereum and Base, which boast average transaction values of $1,867 and $170, respectively.

While TPS is a commonly used metric to gauge a blockchain’s scalability, industry experts caution against solely relying on this metric, as it overlooks the computational complexity of each transaction.

Degen Chain’s success can be attributed to its native token, DEGEN, initially conceived as a tipping token for users engaging with Degen’s Farcaster channel, a decentralized social media platform. This innovative use case has garnered widespread adoption and social value for the token.

Thomas Tang, Vice President of Investments at cryptocurrency venture capital firm Ryze Labs, describes Degen Chain’s journey as a prime example of how a memecoin can evolve into a valuable asset, driven by its community’s engagement and adoption.

With a total value locked (TVL) of $4.1 million and a market capitalization of $326 million for the DEGEN token, Degen Chain continues to solidify its position as an ultra-low-cost, application-specific layer 3 blockchain. Leveraging technologies like Arbitrum Orbit and Base’s settlement layer, Degen Chain demonstrates promising potential in the Ethereum ecosystem’s ongoing evolution.