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## [TL; DR]
Between 18 and 19 April the Degen Chain recorded 37.12 transactions per second.

Some crypto experts have warned against relying on a blockchain’s TPS count when evaluating the performance of a cryptocurrency.  

The price of the Degen token has been fluctuating between $0.02 and $0.04 during the past two weeks. 
## Introduction 
Memecoins have become one of the dominant crypto asset classes. As things stand, Memecoins have a total market capitalization of $51.1 billion, showing their growing popularity among the crypto community. The good thing is that each year new Memecoins come onto the market. However, a recent trend has emerged in the Memecoin sector. The developers of these tokens are adding utility to them. 

In this article, we explore how the Degen blockchain [supports the $DEGEN token](https://www.gate.io/learn/articles/how-to-get-started-with-the-degen-ecosystem-a-step-by-step-guide-to-operating-it/2555 "supports the $DEGEN token") that exists on the <a href="/id/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> Network. We will also compare DEGEN and Ethereum performance. Lastly, we will look at the [causes of Degen popularity among crypto lovers](https://www.gate.io/learn/articles/degen-on-base-network-dont-call-it-memecoin/2454 "causes of Degen popularity among crypto lovers"). 
## Degen’s Impressive Performance in 2024
Degen Chain, an Ethereum layer network, recorded the highest transaction per second (TPS) count within the Ethereum ecosystem during the 24-hour period that stretched from 18 to 19 April. The Degen Chain TPS rose by about 68.56% to an impressive 37.12, surpassing that of Base, one of the leading scalability solutions on Ethereum network, which attained a TPS of 30.81 within the same period.

[The LBEAT data shows](https://l2beat.com/scaling/activity "The LBEAT data shows") that the Degen Chain processed over 3.2 million transactions within the 24-hour period. The following table summarizes the performance of Degen Chain and the other leading blockchains that are based on the Ethereum network. 
![](https://gimg2.gateimg.com/image/article/17152200771.jpeg)
ETH TPS Record [L2BEAT](https://l2beat.com/scaling/activity "L2BEAT")

As observed on the above table, the Degen chain performed better than the other leading blockchains like zkSync Era, Arbitrum Orbit and Ethereum. Notably, in the last 30 days Degen Chain processed a total of 43.41 million transactions to become the fourth best blockchain, in this respect, behind Base, Linea, and Arbitrum Orbit. 

There is no doubt that the Degen Chain, an ultra-low-cost layer 3 blockchain that leverages Arbitrum Orbit and Base’s settlement layer for scalability, has positioned itself competitively in the blockchain sector. Likewise, during the cited 24-hour period the blockchain notched over $819,600 in trading volume

## Comparison with the Transaction Values of Ethereum and Base
Although Degen is scalable due to its high transaction per second (TPS) count, the other metrics show that Base and Ethereum are outperforming it in other metrics. 

For instance, during the cited period Degen had a trading volume of only $788,813, giving an average transaction value of around $0.24. On the contrary, Ethereum and Base had higher average transaction values of $172 and $2,166, respectively. This contrast reveals one weakness of the Degen Chain. The following table compares the performance of Degen Chain and the other leading networks.
![](https://gimg2.gateimg.com/image/article/17152201242.jpeg)
Source: [x.com](https://twitter.com/syndicateio/status/1781004490302480607/photo/1 "x.com")

As you can see on the image, Degen Chain and Immutable X had higher percentage increases in terms of TPS count during the stated period. Something else worthy noting is that the Degen chain, with a market capitalization of $345 million, had $4.1 million in total value locked by the 19th of April. 
## Critique of the TPS Metric
Although the TPS metric is widely used in the crypto sector some experts have cautioned against over relying on it. Its main weakness is that it fails to account for the computational size of each transaction. Cointelegraph quoted Steven Goldfeder, a founder at Offchain Labs [as saying](https://cointelegraph.com/news/degen-chain-l3-tops-transaction-tps-charts-ethereum-ecosystem "as saying"), "**Using TPS is a bit like counting the number of bills in your wallet but ignoring that some are singles, some are twenties, and some are hundreds**.”

Here, Goldgeder highlights that when we compare blockchain performance, it’s not just a matter of high transactions per second count; we also need to evaluate the quality of the transactions. 
## The DEGEN Token and Degen Chain's Popularity
As hinted above, one of the main reasons the Degen token is very popular is the economic utility it offers the Farcaster. On this decentralized social media platform, it is a tipping token. Similarly, when the developers launched an airdrop to the Degen’s community members who were also part of the Base and Farcaster ecosystems,[ the popularity of DEGEN increased](https://www.gate.io/learn/articles/how-to-get-started-with-the-degen-ecosystem-a-step-by-step-guide-to-operating-it/2555 " the popularity of DEGEN increased").

Farcaster is well-known for Frames, a feature that enables developers to create interactive mini-apps using its app, Warpcast. The mini-apps enable the developers to participate in activities like playing games, minting NFTs and making transactions without leaving the Farcaster ecosystem. DEGEN is a utility token used as a means of payment when interacting with these mini-apps. 

In addition, the DEGEN token is used to reward Farcaster community members for their active engagement on the platform. Some community members reward content creators, mini-app builders, and other active users through tipping.

In addition to being a tipping token, investors can also participate in its liquidity mining program. As per [Cointelegraph publication](https://cointelegraph.com/news/degen-chain-l3-tops-transaction-tps-charts-ethereum-ecosystem "Cointelegraph publication"), Thomas Tang, the vice president of investments Ryze Labs- crypto venture capital firm- attributes the popularity of the Degen Memecoin to its utility in the Farcaster ecosystem. He [said](https://cointelegraph.com/news/degen-chain-l3-tops-transaction-tps-charts-ethereum-ecosystem "said"), “It’s gained massive mass popularity because everyone’s tipping each other, and everyone holds it,”

Secondly, DEGEN has benefitted from the [network effect involving the memecoins](https://www.gate.io/learn/articles/degens-impact-on-memecoin-ecosystem/2589 "network effect involving the memecoins"). As you know, the Degen token is one of the Memecoins that has utility due to its functionalities such as supporting min-apps on the chain. Already, crypto luminaries like Vitalik Buterin, the Ethereum co-founder, have called for the development and promotion of meme coins that have utility. 

In this regard, [Buterin said](https://vitalik.eth.limo/general/2024/03/29/memecoins.html "Buterin said"), “I want to see higher quality fun projects that contribute positively to the ecosystem and the world around them (and not just by "bringing in users") get more mindshare.

“At the least, more good Memecoins than bad ones, ideally those that support public goods instead of just enriching insiders and creators. But also ideally, making games rather than coins, and making projects that people enjoy participating in.” Degen and BONK are two examples of Memecoins that have utility. 
## Price performance of the DEGEN token
Currently, DEGEN with a market capitalization of $327,198,024, is trading at $0.02634 after losing by 8.6% within the last 24 hours. However, the Degen price gained by 39.8% within the last 30 days. It is important to realize that since 11 April the Degen token price has been fluctuating between $0.02 and $0.04 as the following graph indicates. 
![](https://gimg2.gateimg.com/image/article/17152203103.jpeg)
Degen Token One-Month Price Chart – [CoinGecko](https://www.coingecko.com/en/coins/degen-base "CoinGecko")

What is also worth noting from <a href="/id/price/the-graph-grt" target="_blank" class="blog_inner_link">The Graph</a> is the downward sloping curve showing the rising bearish momentum. The other interesting fact is that the token attained its all-time high of $0.058950 on 31 March and an all-time low of $0.00002274 on 15 January. Looking into the future, Degen’s market condition is neutral since it has an RSI reading of 40.22. 

Nevertheless, the neutral market condition is not only unique to Degen as ETH is in the same state with an RSI reading of 45.10. The current ETH price is $3,113.47 after losing by 4.5% within the last two weeks. However, some analytic platforms like CoinCodex are indicating that the <a href="/id/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum price</a> may remain flat until the end of May as the following <a href="/id/price-prediction" target="_blank" class="blog_inner_link">price prediction</a> graph indicates. 
![](https://gimg2.gateimg.com/image/article/17152203364.jpeg)
Ethereum Price Prediction Graph – [CoinCodex](https://coincodex.com/crypto/ethereum/price-prediction/ "CoinCodex")
As you observe on the graph, from mid-April to the end of May the Ethereum price may be fluctuating in a tight range. 
## Conclusion
The Degen Chain recorded an impressive transaction per second (TPS) count between 18 and 19 April, outperforming other leading blockchains on the Ethereum network. However, some analysts have cautioned that it is unwise to assess the performance of a blockchain based on its TPS alone as that fails to account for the computational size of each transaction. 
## FAQs about Degen Chain
### Where can I buy Degen?
You can buy Degen Base on several centralized and decentralized exchanges such as Gate.io, Bybit and <a href="/id/price/uniswap-uni" target="_blank" class="blog_inner_link">Uniswap</a>. However, the best exchange to [purchase Degen Base is Gate.io](https://www.gate.io/how-to-buy/degen-token-dgn "purchase Degen Base is Gate.io") where it is paired against USDT.
### What is Degen Token?
The Degen token is an ERC20 token that was distributed to the Farcaster community where it is used for tipping active users and creators. Initially, Degen was launched on the Ethereum blockchain but now it has its own blockchain.
### How to buy Degen Base?
You can easily buy Degen Base on various exchanges like Gate.io, Bybit and Uniswap. To [buy Degen Base on Gate.io](https://www.gate.io/how-to-buy/degen--base--degen "buy Degen Base on Gate.io"), open and verify your account. From there you can swap any leading cryptocurrencies like <a href="/id/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> and ETH to Degen.
### How much is Degen?
At the time of writing, Degen has been exchanging hands at $0.02634. However, it attained its all-time high of $0.058950 on 31 March and an all-time low of $0.00002274 on 15 January 2024. 

<div class="blog-details-info">
<div>Author:** Mashell C.**, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>


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Degen Chain Shatters Ethereum Ecosystem Records with Unprecedented TPS  Rate: A Deep Dive into Its Economic Utility and Scalability