# Arbitrum One Transactions per second Methodology

## 1. Overview

Transactions per second (TPS) measures Arbitrum's blockchain throughput by calculating the average number of transactions processed per second on a daily basis. This metric answers the business question: "What is Arbitrum's daily transaction processing capacity?" The calculation takes daily transaction counts and converts them to an average per-second rate by dividing by the number of seconds in a day (86,400).

## 2. Data sources

The calculation uses the following raw data sources:
- **Arbitrum blockchain transaction records**: Complete transaction data from the Arbitrum L2 blockchain including timestamps, transaction hashes, sender and receiver addresses, and gas usage information
- **Account labels and metadata**: Public labeling data that categorizes Arbitrum addresses as specific contracts, protocols, or remains unlabeled
- **Token metadata**: Contract addresses and symbols, specifically identifying WETH (Wrapped ETH) as the gas token with address `0x82af49447d8a07e3bd95bd0d56f35241523fbab1`

## 3. Step-by-step calculation

### Component A: Transaction fact extraction
- **Purpose**: Creates a standardized view of all Arbitrum transactions with gas fee calculations
- **Logic**: Extracts all distinct transactions from Arbitrum blockchain records, standardizing fields and calculating L2 gas fees. Each transaction includes `block_timestamp`, `transaction_hash`, `from_address`, `to_address`, gas pricing (`receipt_effective_gas_price`), and gas usage (`receipt_gas_used`). Gas fees are calculated by multiplying gas price by gas used and dividing by 1e18 to convert from wei to ETH units. All transactions are classified under the 'blockchains_l2' market sector and 'blockchain' business segment.
- **Key fields**: `block_timestamp` for timing, `transaction_hash` for unique identification, gas-related fields for fee calculations, and address fields for transaction flow analysis

### Component B: Daily transaction aggregation
- **Purpose**: Counts unique transactions per day and enriches with address labels
- **Logic**: Groups transactions by day using timestamp truncation to daily boundaries. Uses approximate distinct counting (`approx_count_distinct`) on `transaction_hash` to get daily transaction volumes while avoiding double-counting. Enriches transaction destinations by left-joining with account labels, classifying `to_address` destinations as either labeled contracts (with `account_title`) or 'Unlabeled' addresses. Maintains chain, market sector, and business segment classifications.
- **Key fields**: `timestamp` (daily), `transaction_count` (distinct daily transactions), `contract_name` (destination classification), standard dimension fields for chain and business categorization

### Component C: Account classification
- **Purpose**: Provides human-readable labels for transaction destination addresses
- **Logic**: Maintains a reference table of Arbitrum account addresses with corresponding titles or labels. Filters the public labels dataset to include only Arbitrum chain entries, creating a lookup for contract names and protocol identifications.
- **Key fields**: `account_address` for joining with transaction data, `account_title` for human-readable destination names

### Final aggregation
- **Combining components**: The transaction counts from the daily aggregation are passed through a finalization macro that validates data quality, ensures consistent schema, and fills any gaps in the time series with zero values
- **Currency conversion**: No currency conversion is required as this is a count-based metric
- **Time aggregation**: Daily boundaries are established using timestamp truncation, with data partitioned by day for efficient incremental processing
- **Final calculation**: Daily transaction counts are converted to transactions per second by dividing the `transaction_count` by 86,400 (the number of seconds in a day) using safe division to handle potential null values. This produces an average TPS rate representing the day's transaction throughput distributed evenly across all seconds in that day

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Average confirmed user transactions added per second.

Transactions per second

Arbitrum One

Arbitrum One batches users' transactions and submits them to Ethereum, paying a share of the transaction fees to Ethereum validators (expense).

Arbitrum One is an L2 smart contract platform for decentralized applications on Ethereum. Arbitrum was founded by Offchain Labs and launched in 2021.

ARB tokenholders own and govern the protocol. They currently run the only sequencer and take a cut of the total transaction fees paid by users (revenue). Arbitrum’s investors include Polychain, Alameda Research, Coinbase Ventures, etc.

Arbitrum OneARB

Transactions per second

Transactions per second

Competitive landscape

Chain breakdown