Degen Chain Network Draws Mixed Reactions Since Launch
Newly launched, the Degen Chain network has attracted attention from various quarters since its inception.
Developed using Arbitrum Orbit by Syndicate, a leading infrastructure provider, Degen Chain emerged on Mar. 28 as a specialized network aimed at offering ultra-low-cost transactions for the Degen token ($DEGEN).
This token has gained prominence as the primary community token for users of the Farcaster Web3 social media platform. It’s important to note that Farcaster operates on Base, an Ethereum Layer 2 network, positioning Degen Chain as a Layer 3 network (L3).
With Farcaster experiencing a surge in user activity and its parent company eying a unicorn valuation, early investors in Degen have seen substantial returns. For instance, one trader reportedly turned an investment of less than $7,000 into over $2 million in profit.
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Degen’s rise to prominence is notable as it represents one of the earliest instances of significant adoption of an L3 chain. The platform has fostered an ecosystem of memecoins, all traded in $DEGEN, boasting tens of millions of dollars in trading volume.
Despite the excitement surrounding L3 networks like Degen Chain, not everyone is on board with the trend. Polygon Labs CEO Marc Boiron, for instance, recently expressed skepticism about L3s in a post, suggesting that they primarily serve to divert value away from Ethereum onto the L2s they’re built upon. Boiron argues that this undermines the security and value of the Ethereum base layer.
Polygon Labs is renowned for its Ethereum Layer 2 scaling solutions, including the Polygon and Polygon zkEVM chains. Although Polygon zkEVM faced temporary downtime last weekend, operations have since resumed to normalcy.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
