The Ethereum ecosystem’s combined transactions per second (TPS) recently reached an all-time high, driven by the activity on a relatively new layer-3 scaling solution focused on gaming applications.
Record-Breaking TPS and the Role of Xai
According to data from L2beat, Ethereum’s scaling networks, which include both layer-2 and layer-3 blockchains, achieved a combined TPS of 246.18 on June 16. This equates to approximately 21.2 million transactions over the course of the day.
A significant portion of this transaction volume, over 41%, was attributed to Xai, a new Ethereum layer-3 scaling solution developed by Offchain Labs, the same team behind the Arbitrum One blockchain. Xai focuses primarily on gaming applications and has seen a dramatic increase in activity. Prior to June 10, Xai’s TPS was around one per day, but it has since surged, peaking at 101.72 TPS on June 16.
Leading Ethereum Scaling Solutions
Apart from Xai, other significant contributors to the increased TPS include Base and Arbitrum, which recorded 33 and 21 TPS, respectively, on June 16. Proof of Play Apex, another game-focused Ethereum layer-3 scaler launched by Offchain Labs, also contributed to the overall TPS but to a lesser extent.
Despite the impressive TPS figures, the total value locked (TVL) in these newer solutions remains modest compared to their more established counterparts. Xai and Proof of Play Apex have TVLs of $1.38 million and $695,000, respectively. In contrast, Arbitrum One and Base, the two largest Ethereum scaling solutions by TVL, secure $18 billion and $7.6 billion.
The Debate Over TPS as a Performance Metric
While TPS is a commonly used metric to gauge the performance of blockchains, some industry analysts argue that it may not be the most accurate measure. Steven Goldfeder, a founder at Offchain Labs, likened TPS to “counting the number of bills in your wallet but ignoring that some are singles, some are twenties, and some are hundreds.” He noted that although TPS is a prevalent metric, it doesn’t necessarily capture the complexity and value of the transactions processed.
The Ethereum scaling ecosystem has demonstrated its capacity to handle a high volume of transactions, driven primarily by innovations in layer-3 solutions like Xai. While TPS remains a popular metric for assessing blockchain performance, its limitations suggest the need for more nuanced evaluation criteria. As Ethereum continues to evolve and integrate more advanced scaling solutions, the overall efficiency and utility of the network are poised to improve, benefiting developers and users alike.
