Highlights:
- Ethereum scaling solutions achieved a record 246.18 transactions per second (TPS) on June 16, marking a milestone for blockchain performance.
- Layer 3 XAI significantly influenced this surge, accounting for over 41% of the total transactions with a remarkable 101.72 TPS.
- Despite high TPS, Layer 3 XAI holds only $1.38 million in total value locked (TVL), showcasing a disparity between transaction capacity and locked value.
The Ethereum network has reached a record-breaking milestone in transaction processing speed, driven by its scaling solutions. On June 16, blockchain analytics firm L2BEAT reported that Ethereum’s scaling networks, including layer 2 and layer 3 blockchains, achieved 246.18 transactions per second (TPS). This marks the highest TPS recorded since the network’s inception in July 2015, translating to approximately 21.2 million transactions daily.
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ETHEREUM OWES ITS RECENT SUCCESS TO LAYER-3 XAI – REPORT
– According to data provider L2Beat, the #Ethereum ecosystem has reached a new all-time high in terms of transactions per second (TPS).
– On June 16th, Ethereum’s TPS rose to a full 246 TPS across mainnet and its various… pic.twitter.com/rLDqynyeoC
— BSCN (@BSCNews) June 17, 2024
This milestone comes amidst a challenging period for the crypto market, often called the crypto winter, which has persisted since April. Despite these market conditions, activity on the Ethereum network has surged, setting new performance records.
New Milestone in Ethereum Scaling
According to L2BEAT data, the recent spike in TPS is attributed to advancements in layer 2 and layer 3 scaling solutions. These solutions are designed to enhance the network’s efficiency and scalability, allowing it to handle a higher volume of transactions simultaneously.
A significant portion of this TPS surge was driven by Xai, an Arbitrum-based layer 3 game network for Ethereum. Developed by Offchain Labs and powered by the XAI token, Xai contributed more than 41% of the total TPS. This rapid increase in Xai’s transaction processing capacity is notable, as it went from processing just one transaction per day on June 10 to an impressive 101.72 TPS by June 16.
Other contributors to this milestone include Base and Arbitrum, which recorded TPS of nearly 33 and 21, respectively. Additionally, the Ethereum layer 3 network Proof of Play Apex, focused on gaming applications, achieved 15.96 TPS, securing the fourth position in terms of transaction volume.
Performance and Total Value Locked (TVL)
Despite their contributions to Ethereum’s overall TPS, some of these networks have underperformed in terms of total value locked (TVL). Xai led in TPS and has only $1.38 million locked in TVL. Similarly, Proof of Play Apex, ranked among the top four chains by TPS, has about $695,000 in TVL.
In contrast, Arbitrum One and Coinbase’s Base are the leading scaling solutions on the Ethereum network in terms of TVL, with $18 billion and $7.6 billion, respectively. These figures underscore the varying performance metrics among different Ethereum scaling solutions.
According to L2BEAT, the Ethereum ecosystem’s new TPS record reflects the significant advancements in scaling technologies. The surge in TPS demonstrates the effective scalability of layer-2 and layer-3 networks, which are essential for supporting the network’s growing demand.
The recent success of Xai highlights the potential of layer 3 networks, which have been subject to skepticism in the past. Xai’s ability to rapidly scale its transaction processing capacity showcases the value of these networks in enhancing Ethereum’s performance.
Ethereum’s Transaction Speed surge also coincides with the Ethereum network’s recent Dencun upgrade, further illustrating the impact of continuous technological improvements on the network’s capabilities. These developments highlight the importance of ongoing innovation in maintaining Ethereum’s position as a leading blockchain network.
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Disclaimer: Cryptocurrency is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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