Since its launch last week, the Degen Chain network has attracted a significant number of speculators and its success has led to many critics.
Built using Arbitrum Orbit, Degen Chain is a specialized ultra-low-cost network for the Degen token ($DEGEN), which has become the de facto community token for Farcaster Web3 users and was launched on March 28 by infrastructure provider Syndicate. Social media services. Farcaster runs on Base, the Ethereum Layer 2 network, so Degen Chain is a Layer 3 network, or L3.
Early Degen adopters have turned their small stash into fortunes as Farcaster sets new user activity records and its parent company eyes its unicorn valuation. merchant Anyone who invested less than $7,000 in tokens made a profit of more than $2 million.
However, while making money with memecoins is nothing new to cryptocurrency, Degen’s users make it one of the first L3 chains to achieve notable adoption. On Degen Chain, an ecosystem of even more memecoins, denoted as $DEGEN, trading volume has reached tens of millions of dollars.
However, not everyone supports the enthusiasm for L3 networks like Degen Chain. polygon Matic
+2.26%
Labs CEO Marc Boiron expressed frustration with the focus on L3 in X. In a post on Sunday, he said, “Let me say the quiet part loudly: L3 exists solely to take value from Ethereum and the L2 on which it is built. *You don’t need L3 to scale* That’s why Polygon. Labs does not work in L3.”
Boiron argues that the L3 network takes security and value away from the Ethereum base layer. “If all L3 settles on one L2, Ethereum will gain essentially no value, putting Ethereum security at risk,” Boiron wrote in another X post. Boiron did not immediately respond to The Block’s request for comment.
Polygon Labs is best known for its various Ethereum Layer 2 scaling solutions, including the Polygon and Polygon zkEVM chains and other services. Polygon zkEVM experienced a brief period of downtime last weekend, but has since returned to operation.
Disclaimer: The Block is an independent media outlet delivering news, research and data. As of November 2023, Foresight Ventures is a majority investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, impactful and timely information about the cryptocurrency industry. Below are our current financial disclosures.
© 2023 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.