Ethereum's (CRYPTO:ETH) third-layer solution, Degen Chain, has set a new record by achieving a transaction per second (TPS) rate of 37.12, surpassing the performance of existing layer-2 networks.

This milestone underscores Degen Chain's potential to enhance Ethereum's scalability and throughput, promising a significant improvement in transaction efficiency on the blockchain.

However, despite its technological breakthrough, Degen Chain is under scrutiny for its potential economic implications.

Stakeholders are closely monitoring its impact on transaction costs and the broader economic ecosystem of the Ethereum network, balancing optimism with a cautious assessment of long-term effects.