Although the price performance has been disappointing, the Ethereum (ETH) ecosystem is currently doing impressive things. This week a new record was recorded for the number of transactions per second. After the launch of Layer-2 network Lighter, this amounts to 24,192 transactions per second.
The fastest second layer on Ethereum
Lighter is a new platform on Ethereum that allows people to trade decentralized perpetual futures. These are derivatives that allow you to bet on the price of the market, as you can with the popular Hyperliquid (HYPE).
And Lighter’s transaction speed is even a lot higher than that of Base Chain, the blockchain of crypto exchange Coinbase. Lighter does 4,000 per second, while that figure for Base is 100 to 200.
The Ethereum community is excited about the new milestone for the network. Vitalik Buterin, founder of Ethereum, was clear about the development on X: “Ethereum is scaling up.”
These are the real developments
These types of developments are of course really important for the ecosystem. If this gives the blockchain a higher capacity, without sacrificing much in terms of decentralization, this will make new applications possible.
For Ethereum to truly act as a kind of fundamental layer for the financial system, higher transaction speeds are needed.
For example, you can’t trade stocks in an environment that could theoretically freeze at peak times. Suppose everyone wants to get to the exit at the same time, and that is simply not possible due to technological limitations.
That would be disastrous and would probably prevent a definitive breakthrough in technology. Until the transaction capacity is sufficient. Ethereum is now moving towards this step by step.
However, the Ethereum price is not yet at the desired level for most investors. It is currently trading at $3,388, which is quite far below the all-time high of over $4,900.
Source: https://newsbit.nl/ethereum-beleggers-juichen-netwerk-verwerkt-nu-24-000-transacties-per-seconde/
