Transaction Throughput: What It Is and Why It Matters in Crypto

When you send crypto, transaction throughput, the number of transactions a blockchain can process in a given time. Also known as network capacity, it’s what decides whether your swap finishes in seconds or hours. If a network can only handle 15 transactions per second, like early Ethereum, you’re stuck waiting while others line up. That’s not just annoying—it makes DeFi, gaming, and everyday payments impractical.

High transaction throughput isn’t just about speed. It’s about cost. When networks get busy, fees spike because users bid against each other. That’s why Bitcoin’s 7 TPS leads to $50 fees during hype cycles, while Solana’s 65,000 TPS keeps costs under a penny. But speed alone doesn’t fix everything. Layer 2 solutions, systems built on top of blockchains to handle transactions off-chain. Also known as scaling layers, they enable faster, cheaper trades without sacrificing security. Rollups, sidechains, and state channels all boost throughput by moving work off the main chain. Projects like Arbitrum and Polygon use this to make Ethereum usable for daily transactions.

Network congestion is another hidden problem. Even if a chain claims high throughput, real-world performance drops when too many users flood the system. That’s why some chains look fast on paper but feel slow in practice. Network congestion, when too many transactions compete for limited block space. Also known as blockchain traffic jams, it’s what turns a $0.10 fee into $5 during an NFT drop. The best systems don’t just have high throughput—they manage demand smartly, using dynamic fees and queue prioritization.

What you’ll find here are real breakdowns of how different blockchains handle volume, what tools are actually working to fix bottlenecks, and which projects are just marketing hype. From the technical guts of rollups to how a single slow chain can wreck DeFi liquidity, these posts cut through the noise. You’ll see exactly how throughput impacts your wallet—not just your patience.