Finance

Ethereum Soars: How Layer 2 Innovations Fuel Record 24,192 TPS and Reshape ETH’s Economic Model

Ethereum hit 24,192 TPS, fueled by Layer 2s, with $32.2M ETH burned in 30 days amid scaling progress.

November 10, 2025, 4:17 PM

Ethereum coin taking off like a rocket from a cloud of smoke, symbolizing soaring value.

The Ethereum coin is depicted launching like a rocket from a cloud of smoke, symbolizing massive value growth. By MNami / Shutterstock.com.

Executive Summary

Ethereum achieved a new record of 24,192 transactions per second (TPS) on November 10, 2025, largely propelled by the integration of the Layer 2 protocol Lighter.

Layer 2 protocols, particularly Lighter, are instrumental in Ethereum’s scaling success, independently processing significant transaction volumes and surpassing the Base Chain’s capacity.

A substantial rise in ETH burns, totaling 9,463 ETH (approximately $32.2 million) over 30 days, reflects increased on-chain volume driven by higher transaction activity across Layer 2 networks.

The Story So Far

Ethereum’s base layer has inherent limitations in transaction processing capacity, necessitating the development and integration of Layer 2 solutions like Lighter, Arbitrum, and Optimism to significantly enhance scalability by handling transactions off-chain, a strategy that has been further bolstered by recent network upgrades such as Pectra and Dencun to improve efficiency and throughput.

Why This Matters

Ethereum’s record-breaking transaction speed, powered by Layer 2 protocols and recent network upgrades, marks a significant advancement in its scalability, enhancing its capacity and efficiency. This increased activity has led to a substantial ETH burn, potentially influencing its future price dynamics by reducing circulating supply, while also prompting a reevaluation of Ethereum’s long-term economic model as Layer 2s increasingly capture transaction fees, necessitating new revenue strategies for the mainnet.

Who Thinks What?

Ethereum co-founder Vitalik Buterin and the network’s developers celebrate the achievement of 24,192 transactions per second (TPS) as a significant scaling success, driven by Layer 2 integration and network upgrades.

Layer 2 protocols like Lighter, Arbitrum, and Optimism are viewed as instrumental in enhancing Ethereum’s throughput and extending its scalability beyond the base layer.

Experts suggest that with Layer 2 networks increasingly capturing transaction fees, Ethereum’s mainnet will need to explore alternative revenue streams such as fee sharing or deeper protocol-level integrations to maintain its financial benefit.

Ethereum achieved a new record of 24,192 transactions per second (TPS) on November 10, 2025, a significant milestone largely propelled by the integration of the Layer 2 protocol Lighter. This surge in network activity coincided with the burning of approximately $32.2 million worth of ETH over the past 30 days, reflecting increased on-chain volume.

Lighter’s Impact on Scaling

The Layer 2 protocol Lighter has been instrumental in Ethereum’s scaling success, independently processing about 4,000 TPS. This performance considerably surpasses the Base Chain’s capacity, which typically handles between 100 and 200 TPS, underscoring the vital role of Layer 2 solutions in enhancing Ethereum’s throughput.

Other Layer 2 networks, including Arbitrum and Optimism, are also contributing to the growing transaction volumes and overall network efficiency. These platforms are crucial for extending Ethereum’s scalability beyond its base layer capabilities.

ETH Burn Rate Escalates

In tandem with the increased transaction speed, Ethereum has seen a substantial rise in ETH burns. Over the last 30 days, 9,463 ETH, valued at approximately $32.2 million, were removed from circulation. This heightened burn activity is directly linked to the higher transaction volumes across various Layer 2 networks such as Base, Worldcoin, and Arbitrum.

The escalating burn rate indicates an increase in Ethereum’s overall on-chain activity. This reduction in the circulating supply of ETH could potentially influence the network’s future price dynamics. This trend is expected to persist as Layer 2 networks continue to expand and Ethereum’s transaction volumes grow.

Buterin Celebrates Scaling Progress

Ethereum co-founder Vitalik Buterin acknowledged the network’s achievement, tweeting, “Ethereum is scaling.” The network’s enhanced ability to process higher transaction volumes is a direct outcome of recent Pectra and Dencun upgrades, which have improved throughput and efficiency for Layer 2 networks.

These upgrades, by supporting zero-knowledge technology, enable Ethereum to process transactions at accelerated speeds. Despite its contributions, Lighter has experienced operational challenges, including several disruptions since its launch on October 1, with the team compensating affected wallets with USDC after an outage on October 28.

Future Economic Model for Ethereum

The proliferation of Layer 2 networks has sparked discussions regarding Ethereum’s long-term economic model. With Layer 2s increasingly capturing a significant portion of transaction fees, experts suggest that Ethereum’s mainnet may need to explore alternative revenue streams.

Mechanisms like fee sharing and deeper protocol-level integrations are proposed avenues for Ethereum to maintain financial benefit amidst the growth of Layer 2 solutions. This evolution highlights the dynamic nature of blockchain economics as scaling solutions mature.

Key Takeaways

Ethereum’s recent achievement of 24,192 TPS, driven by Layer 2 innovations like Lighter and supported by key network upgrades, marks a significant stride in its scaling journey. This progress, coupled with a notable increase in ETH burning, highlights the network’s evolving efficiency and the critical role of Layer 2s in its future development.