Key Takeaways:
- Ethereum achieves 24,192 TPS, setting a new network record.
- Layer 2 protocols, especially Lighter, are central to scaling and ETH burn.
- $32M in ETH destroyed over 30 days, reducing supply and impacting value.
- Network upgrades and ZK tech underpin faster, cheaper transactions.
- Ongoing discussions focus on value capture for Ethereum’s mainnet.
Ethereum Breaks TPS Records While Burning $32 Million in ETH
Ethereum has reached a historic milestone, processing 24,192 transactions per second (TPS)—its highest-ever throughput. This surge comes as Layer 2 solutions, particularly the newly integrated Lighter protocol, enhance the network’s scalability and efficiency.
Layer 2 Solutions Drive Ethereum’s Performance
Lighter alone handles around 4,000 TPS, vastly outpacing the Base Chain, which typically processes 100–200 TPS. This highlights the growing impact of Layer 2 networks such as Base, Optimism, Arbitrum, and Worldcoin. By offloading transaction loads from Ethereum’s base layer, L2 platforms extend scalability and enable faster, cheaper transactions.
Also Read: What Is Layer 2 Scaling?
Ethereum’s Pectra and Dencun upgrades further boost performance, optimizing data handling and supporting zero-knowledge (ZK) technology. These enhancements allow Layer 2 networks to achieve record speeds, positioning Ethereum to potentially reach 100,000 TPS, with long-term projections aiming for 1 million TPS.
$32 Million in ETH Burned
The network’s record throughput coincided with 9,463 ETH burned in the past month, valued at roughly $32.2 million. According to Onchain HQ’s Leon Waidmann, higher activity on Layer 2 networks directly contributes to ETH burn, reducing supply and potentially impacting Ethereum’s price dynamics.
Also Read: Top 10 Differences Between Bitcoin and Ethereum
Community responses have been positive. Ethereum co-founder Vitalik Buterin celebrated the scaling achievement, while Ryan Sean Adams of Bankless emphasized the transformative effect of Layer 2 and ZK tech, which now offer Ethereum a 200x scaling factor.
Challenges and Economic Debate
Despite its success, Lighter has experienced network outages, including one on October 28, which prompted compensation of $774,872 in USDC to affected wallets. This mirrors early growing pains seen in other blockchain networks, like Solana.
The rise of Layer 2 solutions also sparks strategic debates. Critics question how Ethereum’s mainnet captures value if L2 networks dominate fee generation. Advocates suggest mechanisms such as fee sharing, MEV capture, and protocol integrations could secure long-term financial benefits for Layer 1.
