Degen

<p class="is-style-lead">Polygon CEO Marc Boiron ignited a debate against the development of layer-3 networks while millions are made from the Degen Chain.</p>
<p>Since its introduction on March 28, the <a href="https://syndicate.io/blog/degen-chain" data-type="link" data-id="https://syndicate.io/blog/degen-chain" target="_blank" rel="noopener noreferrer nofollow">Degen Chain</a> network has quickly become a focal point for speculation, drawing enthusiasts and skeptics alike. Syndicate developed it using Arbitrum Orbit technology, and It serves as a low-cost network tailored for the Degen token (<a href="https://crypto.news/price/degen/" rel="noopener noreferrer nofollow">DEGEN</a>).</p>
<p>The token has emerged as a prominent asset among users of the Farcaster web3 social media platform, which operates on <a href="https://crypto.news/tag/base/" data-type="link" data-id="https://crypto.news/tag/base/" rel="noopener noreferrer nofollow">Base</a>, an Ethereum Layer 2 network. The Degen Chain is classified as a Layer 3 (L3) network. The ascent of Farcaster, marked by record-setting user engagement and its parent company’s approach toward unicorn status, has significantly benefited early adopters of the Degen token.</p>
<p>While crypto is no stranger to wealth generation through <a href="https://crypto.news/tag/meme-coin/" data-type="link" data-id="https://crypto.news/tag/meme-coin/" rel="noopener noreferrer nofollow">meme coins</a>, Degen Chain distinguishes itself as one of the inaugural L3 chains to garner considerable traction. It hosts a burgeoning ecosystem of meme coins, all denominated in DEGEN, and has witnessed trading volumes in the tens of millions of dollars. One investor transformed an investment of $113,000 and gained a profit of nearly $3.4 million.</p>
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   <p lang="en" dir="ltr">This trader turned $113K into $3.4M by trading <a href="https://twitter.com/search?q=%24DEGEN&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">$DEGEN</a>!<br><br>He bridged 38 <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">$ETH</a>($113K) to <a href="https://twitter.com/hashtag/Base?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">#Base</a> on Feb 22 and spent 31.6 <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">$ETH</a>($108K) to buy 85.36M <a href="https://twitter.com/search?q=%24DEGEN&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">$DEGEN</a> on Mar 2.<br><br>He sold 72.73M <a href="https://twitter.com/search?q=%24DEGEN&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">$DEGEN</a> for 2.83M <a href="https://twitter.com/search?q=%24USDC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">$USDC</a> 15 hours ago, with 12.6M <a href="https://twitter.com/search?q=%24DEGEN&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">$DEGEN</a> (worth $600K) left.<a href="https://t.co/VYvGIPWQYm" target="_blank" rel="noopener noreferrer nofollow">https://t.co/VYvGIPWQYm</a> <a href="https://t.co/qW5eiMjPgo" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/qW5eiMjPgo</a></p>— Lookonchain (@lookonchain) <a href="https://twitter.com/lookonchain/status/1774467201069953209?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">March 31, 2024</a>
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<h2 class="wp-block-heading" id="polygon-ceo-speaks-out-about-l3s">Polygon CEO speaks out about L3s</h2>
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   <p lang="en" dir="ltr">I’ll say the quiet part out loud: L3s exist only to take value away from Ethereum and onto the L2s on which the L3s are built. <br><br>*You do not need L3s to scale*<br><br>And this is why Polygon Labs does not work on L3s.</p>— Marc Boiron (@0xMarcB) <a href="https://twitter.com/0xMarcB/status/1774551016937324949?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">March 31, 2024</a>
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<p>Boiron articulated Polygon Labs’ position on April 1, emphasizing that their focus on L2 scaling solutions is driven by a belief in their sufficiency for Ethereum’s (<a href="https://crypto.news/price/ethereum/" data-type="link" data-id="https://crypto.news/price/ethereum/" rel="noopener noreferrer nofollow">ETH</a>) needs.</p>
<p>“L3s exist only to take value away from Ethereum and onto the L2s on which the L3s are built,” Boiron stated, highlighting a fundamental concern regarding the distribution and retention of value within the blockchain’s layers.</p>
<p>In a clarifying <a href="https://twitter.com/0xMarcB/status/1774554359587881160" target="_blank" rel="noopener noreferrer nofollow">response</a>, Boiron argued against L2 value representing Ethereum value, presenting a hypothetical scenario to highlight the potential risks to Ethereum’s security and value capture mechanisms should L3s consolidate value onto a single L2.</p>
<p>“The objective was to scale Ethereum when nobody else did it,” Boiron said. “L3s are not consistent with that mission.”</p>
<p>Despite Boiron’s skepticism, the dialogue around L3 technologies reflects a broader discourse on scaling and enhancing blockchain ecosystems. Layer-3 protocols, offering solutions for scalability, interoperability, and specialized <a href="https://crypto.news/glossary/decentralized-applications-dapps/" data-type="link" data-id="https://crypto.news/glossary/decentralized-applications-dapps/" rel="noopener noreferrer nofollow">decentralized applications</a>, are emerging as a dynamic component of the blockchain landscape.</p>
<p>Innovations from entities such as Orbs, Xai, and zkSync Hyperchains exemplify the growing exploration of L3 capabilities, although the sector remains nascent.</p>
<p>Read more: <a href="https://crypto.news/base-tvl-meme-coins-dencun/" rel="noopener noreferrer nofollow"> Base TVL surpasses $2b driven by meme coin popularity, Dencun upgrade </a></p>

Polygon CEO debates L3 network utility, Degen Chain makes millions

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