Degen Chain Outpaces Ethereum with Highest Transaction Rate in Ecosystem
Summary:
Degen Chain, an Ethereum layer-3 network, has registered an unparalleled transaction per second (TPS) count, outperforming its base blockchain. Despite the high transaction rate, Degen’s low trading volume means the average transaction value is minimal. Critics argue that TPS is a flawed metric as it doesn't consider the computational size of transactions. Degen was initially a memecoin created for social media interactions but has gathered significant social value.
Degen Chain, an emerging Ethereum layer-3 network, has marked the highest transaction count per second (TPS) in the Ethereum domain over the past day. The TPS rate of Degen soared by 62% in just one day, hitting 35.7 TPS, outpacing its foundational blockchain, Base, which measured a TPS of 29.7, as reported by L2BEAT. Arbitrum One, Ethereum, and zkSync Era were also on the top five list. The impressive TPS filter down to Degen’s 35.7 TPS, over a day of 86,400 seconds, effectively means the memecoin-based chain processed over 3.08 million transactions during this period.
However, Degen Chain logged only $819,600 in trade volume over the past day, ranking it 35th amongst 44 blockchains tracked and maintained by CoinGecko. This resulted in an average transaction value of just $0.27, a value much smaller when parallel to Ethereum and Base at $1,867 and $170, respectively.
Despite TPS being a popular metric to gauge a blockchain's scalability potential, it has been criticized by many industry pioneers as a faulty measure, as it overlooks the computational bulk of each transaction. According to Steven Goldfeder, a founder at Offchain Labs, it’s a method akin to counting your dollar bills without acknowledging their denominational differences.
The driving force behind the memecoin-turned-chain is the Degen (DEGEN) token. It was initially conceived as a token rewarding users for their interaction over Degen’s Farcaster channel, a decentralised social media platform. Thomas Tang, VP of investments at Ryze Labs, remarked on this as a perfect representation of a memecoin accruing real social significance.
Ian Lee, from blockchain infrastructure company Syndicate, anticipates that Degen Chain will set a precedent for applications on layer-3 platforms. CoinGecko reports that the total value currently residing on Degen Chain is $4.1 million, while Degen token, only three months old, claims a market cap of $326 million.
Degen Chain is hailed as an ultra-economic, application-specific layer-3 blockchain developed with Arbitrum Orbit and taking advantage of Base's settlement layer, an Ethereum layer-2 enhancement solution.
Published At
4/19/2024 6:40:07 AM
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