The Ethereum ecosystem has reached a new milestone in transactions per second (TPS), largely due to a significant increase in activity on a lesser-known Ethereum layer-3 solution.
On June 16, 2024, the Ethereum scaling networks, encompassing both layer-2 and layer-3 blockchains, achieved a record combined TPS of 246.18, translating to approximately 21.2 million transactions over the course of the day. This impressive performance was primarily fueled by Xai, a recently launched Ethereum layer-3 scaling solution designed for gaming applications.
| Scaling Solution | Transactions per Second (TPS) | Total Value Locked (TVL) |
|---|---|---|
| Xai (Layer-3) | 101.72 | $1.38 million |
| Base (Layer-2) | 33 | $7.6 billion |
| Arbitrum One (Layer-2) | 21 | $18 billion |
| Proof of Play Apex (Layer-3) | 15.5 | $695,000 |
Xai’s Rapid Growth
Xai, a new entrant in the Ethereum scaling landscape, saw its TPS soar from a modest average of one transaction per day before June 10 to an impressive 101.72 TPS by June 16. This surge was primarily driven by its focus on gaming applications, an area with increasing demand for high transaction throughput and low latency.
Xai is powered by Offchain Labs, the same team behind the Arbitrum One blockchain, which is well-regarded for its layer-2 scaling solutions. The rapid adoption and usage of Xai highlight the growing importance of specialized scaling solutions tailored for specific applications, such as gaming.
Leading Ethereum Scaling Solutions
While Xai led the pack in TPS on June 16, other prominent scaling solutions also contributed significantly to Ethereum’s overall transaction capacity. Base and Arbitrum One recorded 33 and 21 TPS, respectively. These platforms are crucial in supporting the Ethereum ecosystem by offloading a significant number of transactions from the main Ethereum blockchain, thereby reducing congestion and transaction fees.
Proof of Play Apex, another game-focused Ethereum layer-3 scaler launched by Offchain Labs, also made notable contributions with 15.5 TPS on the same day. Despite their high TPS, both Xai and Proof of Play Apex have relatively modest total value locked (TVL) figures, with $1.38 million and $695,000, respectively.
| Scaling Solution | Total Value Locked (TVL) | Focus Area |
|---|---|---|
| Arbitrum One (Layer-2) | $18 billion | General scaling |
| Base (Layer-2) | $7.6 billion | General scaling |
| Xai (Layer-3) | $1.38 million | Gaming applications |
| Proof of Play Apex (Layer-3) | $695,000 | Gaming applications |
Evaluating TPS as a Performance Metric
While TPS is a widely used metric to gauge the performance of blockchain networks, its utility and relevance are sometimes debated among industry experts. Steven Goldfeder, a founder at Offchain Labs, likened TPS measurement to counting the number of bills in your wallet without considering their denominations.
“It’s a bit like counting the number of bills in your wallet but ignoring that some are singles, some are twenties, and some are hundreds,” Goldfeder explained in an interview with Cointelegraph Magazine earlier in 2024. Despite its limitations, TPS remains a popular metric due to the lack of a universally better alternative, Goldfeder noted.
The surge in Ethereum’s TPS underscores the critical role that layer-2 and layer-3 solutions play in scaling the network to meet growing demand. As the ecosystem continues to evolve, the development of specialized scaling technologies tailored to different applications will likely become increasingly important.
The rise of Xai and other game-focused solutions also reflects the expanding intersection between blockchain technology and the gaming industry. This trend could drive further innovation in both fields, enhancing user experiences and expanding the reach of blockchain applications.
Ethereum’s recent achievement in reaching a new all-time high for combined TPS highlights the dynamic growth and adaptability of its scaling ecosystem. With the introduction of layer-3 solutions like Xai and continued support from established layer-2 platforms, Ethereum is well-positioned to handle increasing transaction loads and support a diverse range of applications. As the debate around the best metrics for measuring blockchain performance continues, the ongoing evolution of scaling technologies will remain a key focus for the industry.
Featured image credit: Rubaitul Azad via Unsplash