Degen Chain, an emerging Ethereum layer 3 network, has recently achieved a notable milestone by recording the highest number of transactions per second (TPS) within the Ethereum ecosystem over the past 24 hours.
Data sourced from L2BEAT reveals that Degen's TPS surged by 62% during this period, reaching 35.7 TPS, surpassing the blockchain Base it operates on, which reached 29.7 TPS. With Degen's TPS of 35.7 multiplied by the 86,400 seconds in a day, the memecoin chain processed approximately 3.08 million transactions within that timeframe.
However, despite this impressive transaction volume, Degen Chain's trading volume in the past day amounted to just $819,600, positioning it 35th out of 44 blockchains monitored by CoinGecko.
This discrepancy indicates that the average value of each transaction on Degen Chain is considerably lower, at only $0.27, in stark contrast to Ethereum and Base, which average $1,867 and $170 per transaction, respectively.
While TPS is commonly utilized as a metric to gauge a blockchain's scalability, some industry experts caution against relying solely on this metric, arguing that it overlooks the computational complexity of individual transactions.
Steven Goldfeder, founder of Offchain Labs, likened it to counting the bills in one's wallet without considering their respective denominations, emphasizing the importance of transaction value diversity.
Degen Chain operates on the Degen (DEGEN) token, initially conceived as a tipping token for users engaging with Degen channels on Farcaster, a decentralized social media platform. Thomas Tang, vice president of investments at Ryze Labs, views this as a prime example of how meme coins can genuinely accumulate social value, given their widespread use and ownership among users.
Currently, the total value locked on the Degen Chain stands at $4.1 million, with the market capitalization of the DEGEN token reaching $326 million three months later. Positioned as an ultra-low-cost, application-specific layer 3 blockchain, Degen Chain harnesses Arbitrum Orbit and leverages Base's settlement layer, Ethereum's layer 2 scaling solution.
