An Ethereum layer-3 blockchain, Degen Chain, broke the record for transaction per second (TPS) rate by achieving 37.12 TPS in the last 24 hours, surpassing its base blockchain’s 30.81 TPS. This 68.56% increase resulted in processing 3.2 million transactions in a day, according to L2BEAT data.
Despite its high TPS, Degen Chain saw low trading volume at $819,600, with an average transaction value of $0.27, contrasting sharply with Ethereum’s $1,867 and Base’s $170 averages.
Experts caution against overreliance on TPS as a scalability metric, noting its failure to consider transaction complexity. Degen Chain’s success is attributed to its Degen (DEGEN) token, initially a tipping token on Farcaster.
The platform now boasts $4.1 million in locked value, with the DEGEN token’s market cap at $345 million. Degen Chain is hailed as an ultra-low-cost layer 3 blockchain, leveraging Arbitrum Orbit and Base’s settlement layer for scalability.
Degen Chain’s success, despite low trading volume, showcases the potential of its DEGEN token and its innovative approach to layer-3 blockchain technology.
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