The Ethereum ecosystem has reached a new milestone in transactions per second (TPS), with a significant increase in a lesser-known Ethereum layer 3 network.
According to data from L2BEAT, the Ethereum scaling networks, which include layer-2 and layer-3 blockchains, reached a record-high combined TPS of 246.18 on June 16, resulting in an estimated 21.2 million transactions throughout the day.
A notable portion of these transactions, over 41%, were conducted on Xai, a new Ethereum layer 3 scaling solution designed for gaming applications. Powered by Offchain Labs, the same company behind the Arbitrum One blockchain, Xai has seen a remarkable surge in TPS, reaching 101.72 on June 16 from just 1 TPS per day before June 10.
Following Xai, Base and Arbitrum claimed the second and third positions with nearly 33 and 21 TPS respectively on June 16. Proof of Play Apex, another game-focused Ethereum layer 3 scaling solution by Offchain Labs, secured the fourth spot.
Despite their impressive TPS numbers, the total value locked (TVL) in Xai and Proof of Play Apex remains relatively modest at $1.38 million and $695,000 respectively. In contrast, Arbitrum One and Base, the leading Ethereum scaling solutions by TVL, currently hold $18 billion and $7.6 billion.
While Xai and Proof of Play Apex rank 45th and 50th in terms of TVL in the Ethereum ecosystem, some industry analysts argue that TPS may not be the most accurate measure of blockchain performance. Steven Goldfeder, a founder at Offchain Labs, compared TPS to counting bills in a wallet without distinguishing between denominations, suggesting that there may be better alternatives for evaluating blockchain efficiency.
Despite differing opinions on the significance of TPS, it remains a commonly used metric in the blockchain industry. The question arises: Is measuring blockchain transactions per second (TPS) still relevant in 2024?