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DEGEN on the Base Chain is More than Just a Meme Coin
The L3 Network Degen Chain
Is the L3 Network Harmful to Ethereum?
DEGEN, a meme coin born in January 2024 on the decentralized social network Farcaster, has recently become a hot target on the L2 network Base. In fact, with the strengthening of community consensus, the DEGEN token has gradually transcended the realm of meme coins and become the primary tipping token in the farcaster ecosystem. Even the chain-based short video social application Drakula has partnered with Degen, using DEGEN as its primary trading token.
Furthermore, last week (March 28th), DAO infrastructure service provider Syndicate launched a dedicated L3 network, called Degen Chain, for the Degen community (not initiated by the Degen community itself), further expanding the narrative of the DEGEN token. Data shows that the price of DEGEN token has skyrocketed from $0.001 in early March to a peak of $0.06.
Degen Chain is built on Arbitrum Orbit and utilizes the Base network as the settlement layer, with the DEGEN token serving as the base token for GAS payments on the network. With the existing popularity of the DEGEN token, Degen Chain attracted a large number of users upon its launch, making it one of the first L3 chains to gain significant adoption. Currently, over 1 million DEGEN tokens are locked in cross-chain bridges, and the on-chain trading volume is even higher than networks such as Blast, Avax, Op, Zksync, and Scroll.
However, not everyone supports the enthusiasm surrounding L3 networks like Degen Chain. Marc Boiron, the CEO of Polygon Labs, expressed his dissatisfaction with L3 networks in a tweet published on Sunday, believing that L3 networks drain away the security and value from the Ethereum base layer.
Marc Boiron further commented that if all L3 networks settle to a single L2, Ethereum would essentially capture no value, thus putting Ethereum’s security at risk.
