Xai: The Layer-3 Network Behind Ethereum’s Transaction Speed Record

• Ethereum’s combined TPS peak at 246.18, driven by layer-3 scaling solutions.
• Xai, a new entrant focusing on gaming applications, led with 101.72 TPS.
• Established solutions like Arbitrum and Base maintain TVL dominance.

Ethereum’s transaction processing capacity has reached a record high, fueled by the explosive growth of a new layer-3 scaling solution designed for gaming applications.

According to L2beat data, the cumulative TPS for Ethereum’s scaling networks, encompassing both layer-2 and layer-3 solutions, hit an all-time high of 246.18 TPS on June 16. This equates to an estimated 21.2 million transactions processed throughout the day.

A substantial portion of this activity, over 41%, was attributed to Xai, a new Ethereum layer-3 scaling solution designed for gaming applications. Xai, developed by Offchain Labs, the developers behind the Arbitrum One blockchain, saw its TPS increase exponentially from nearly one per day before June 10 to a peak of 101.72 TPS on June 16. This represents an 8,847% increase in a week.

Following Xai, Base and Arbitrum recorded 32.97 TPS and 20.65 TPS, respectively, on the same day. Proof of Play Apex, another gaming-focused Ethereum layer-3 scaler also from Offchain Labs, secured the fourth spot in terms of transaction throughput.

Despite the impressive TPS figures, the total value locked (TVL) in Xai and Proof of Play Apex remains modest, at $1.38 million and $695,000, respectively. In contrast, the more established scaling solutions, Arbitrum One and Base, boast TVLs of $18 billion and $7.6 billion, respectively.

Some industry experts argue that TPS might not be the most comprehensive metric for evaluating blockchain performance. Steven Goldfeder, co-founder of Offchain Labs, compared TPS to counting the number of bills in your wallet but ignoring their denominations. Nonetheless, Goldfeder acknowledged that TPS remains the most prevalent measure due to the lack of a universally better alternative.