Ethereum News Today: Layer 2s Power Ethereum's Record TPS Surge, Driving Scalability Shift

Ethereum's ecosystem has achieved a historic milestone, with daily transaction throughput (TPS) hitting an all-time high of 364.52 average transactions per second, driven by the EIP-1559 upgrade and surging activity on Layer 2 (L2) networks. The 7-day peak TPS reached 24,192, with L2s accounting for 95.35% of the volume, underlining a critical shift in Ethereum's scalability dynamics. This surge is attributed to platforms like Perp DEX Lighter, which has emerged as a key contributor to the network's throughput, leveraging zero-fee transactions and zero-knowledge (ZK) proof technology according to analysis.

The EIP-1559 upgrade, implemented in 2021, restructured Ethereum's gas fee mechanism to prioritize user experience over miner profits, fostering smoother transaction processing. Combined with the recent Dencun upgrade, which enhances L2 efficiency through proto-danksharding, the ecosystem is witnessing unprecedented throughput without compromising security.

However, Ethereum faces broader macroeconomic headwinds, including record outflows from Bitcoin and Ethereum ETFs in November, totaling $3.79 billion and $1.79 billion, respectively. These outflows reflect a broader deleveraging in crypto markets, with Ethereum's price retreating below $3,000 amid heightened volatility.

Despite short-term turbulence, Ethereum's fundamentals remain robust. Exchange outflows exceeding 108,000 ETH ($330 million) indicate accumulation by long-term holders, while whale activity remains stable in the $3,000–$3,100 range according to market data. Funding rates and liquidations have normalized, creating a technical foundation for a potential rebound. Analysts note that Ethereum has historically outperformed Bitcoin during post-deleveraging phases, as seen in June 2023 when a 22% rally followed BTC consolidation.

The rise of L2 networks is central to Ethereum's scalability narrative. Platforms like Lighter, Hyperliquid, and EdgeX dominate perpetual derivatives trading, with Lighter's zero-fee model and ZK-based security attracting high-frequency traders. Hyperliquid, despite losing market share to newer entrants, retains 63% of open interest, reflecting sustained capital deployment. Meanwhile, Bitget Wallet's expansion of gas-free transactions to the Sei network highlights ongoing efforts to reduce on-chain friction, further boosting Ethereum's ecosystem appeal.

Long-term optimism hinges on Ethereum's institutional adoption and the Dencun upgrade's full implementation. The network's dominance in decentralized finance (DeFi) and tokenization, coupled with steady staking participation, positions it for growth in 2026. However, risks persist, including potential ETF inflow declines, dollar strength above the 101 DXY level, and vulnerabilities in L2 smart contracts according to market analysis.