Degen Chain: A Closer Look at Transaction Values and Throughput
Degen Chain Surpasses Ethereum Layer-3 Networks in Transaction Speed
In the world of blockchain technology, transaction speed and efficiency are key factors in determining the success of a network. Recently, Degen Chain, a new addition to the Ethereum ecosystem, has been making waves with its impressive transaction per second (TPS) rate.
Compared to established networks like Ethereum and Base, which have average transaction values of $1,867 and $170 respectively, Degen Chain stands out with a significantly lower average transaction value of just $0.27. Despite this low value, Degen Chain has managed to achieve the highest TPS rate among Ethereum layer-3 networks in the past 24 hours.
In a surprising turn of events, Degen Chain’s TPS count surged by over 68% in the last day, reaching an impressive 37.12 TPS. This surpasses its underlying blockchain, Base, which stood at 30.81 TPS, as reported by L2BEAT. Other notable networks like Arbitrum One, Ethereum, and zkSync Era also made it to the top five rankings.
With Degen Chain processing 3.08 million transactions in a single day, thanks to its 35.7 TPS multiplied by 86,400 seconds, it is clear that the network is capable of handling a high volume of transactions. However, despite this high transaction throughput, Degen Chain only recorded $846,191 in trading volume over the last day, ranking it 41st out of 66 blockchains tracked by CoinGecko.
Industry leaders have pointed out that while TPS is a commonly used metric to measure a blockchain’s scalability, it may not provide a complete picture of a network’s capacity and efficiency. This is because TPS does not take into account the computational size of each transaction, which can vary significantly and impact overall performance.
The Degen (DEGEN) token, initially created as a tipping token for users on the Farcaster platform, has evolved into the primary currency of the Degen Chain ecosystem. With $4.1 million in total value locked and a market capitalization of $326 million, the DEGEN token has quickly gained popularity in the market.
Degen Chain, known for its ultra-low-cost, application-specific layer 3 blockchain, was built using Arbitrum Orbit and utilizes Base’s settlement layer, an Ethereum layer-2 scaling solution. As the network continues to grow and evolve, it will be interesting to see how Degen Chain competes with other established blockchain networks in the future.
