Degen Chain's Data Performance Is Excellent, but Many of Its Incubated Projects Turn Out to Be Rug Pulls?

On March 31st, according to Dune’s data, on-chain analyst NP Hard pointed out on X platform that Degen Chain’s daily active users are close to Optimism and Avalanche, which is half of Arbitrum.

On April 1st, Degen Chain attracted attention since its launch, and its native token DEGEN surged by 500%. The trading volume reached nearly $100 million within 24 hours, with 272,000 transactions completed. Over 7500 contracts and 2300 tokens are circulating on the chain, but many are rug pulls or scams. Degen Swap has a market value of $14 million, and the meme coin Degen Pepe reached $23 million. Most token market caps are less than a million, mainly for speculative purposes. Degen Chain currently does not support stablecoins, only DEGEN trading.

Degen Chain was launched by Web3 infrastructure Syndicate, built by Arbitrum Orbit, settled on the Base chain, and is the first L3 chain with its own community token. Next, the article will explore how Degen Chain innovates in the Layer 3 space, including its technical features, core team, and its role in driving blockchain technology.

Can L3 Form a Decimation Strike against L2? Vitalik Expresses Doubt about This

In the journey of blockchain technology development, the emergence of Layer 3 (L3) chains is seen as a further exploration of existing scalability solutions. L3 projects like Degen Chain have recently become hot topics not only because of their innovative potential but also due to the intense discussions surrounding this new layer.

From a fundamental perspective, L3 chains aim to enhance the scalability and efficiency of blockchain networks by adding additional layers on top of L2. In theory, such designs can provide decentralized applications (DApps) and users with higher throughput and lower transaction fees. For example, the remarkable performance of Degen Chain, reflected in the price increase of its token DEGEN and the growth in transaction volume, demonstrates the market’s high expectations for L3 solutions.

However, the practicality and effectiveness of L3 chains also face challenges and doubts. Even leaders in the blockchain field, such as Vitalik Buterin, express skepticism about L3’s ability to increase throughput. Some community members believe that adding more layers may not be a magic solution to improving network performance. Additionally, some projects even conducted April Fools’ Day jokes centered around the L3 topic, reflecting a reserved attitude toward the L3 concept.

Controversies surrounding L3 chains mainly focus on the feasibility of their technical implementation. The original intention of L2 is to rely on the Ethereum mainnet for settlement to achieve scalability. L3 further relies on L2 for settlement, but this dependency introduces new technical challenges, especially in data compression and processing. Once data is compressed at the L2 level, the space for secondary compression is extremely limited, casting doubt on the additional value brought by L3.

Despite the controversies, the concept of L3 chains presents new possibilities for blockchain technology in terms of scalability. Through different implementation methods and positioning, L3 has the potential to provide value in specific application scenarios. In particular, for pioneers like Degen Chain, exploring how to achieve more efficient and economical blockchain networks on L3 is undoubtedly an important direction for future research and practice.

Overview of Degen Chain: A Layer 3 Network with Both Security and Scalability, Providing Developers with a Range of Conveniences.

Degen Chain introduces an innovative L3 solution through its unique technical architecture. Built on Arbitrum Orbit, an advanced Rollup technology, it enables efficient transaction processing and low gas fees. Additionally, with the combination of the settlement base and AnyTrust’s data availability framework, Degen Chain can provide a secure and scalable blockchain network. Collaborations with technology providers like Syndicate, Conduit, Decent, and Airstack integrate Rollup solutions, cross-chain bridges, and data APIs, providing robust support for Degen Chain’s technical implementation and ecosystem expansion.

More than just a technical platform, Degen Chain represents an active community and ecosystem. Initially launched on Farcaster, Degen quickly accumulated over 53,000 token holders and completed over 553,000 transactions by incentivizing content creation and sharing through token distribution. Tailored specifically for the DEGEN token and its community, Degen Chain supports various new applications such as tipping, community rewards, payments, and gaming, enhancing user engagement and fostering the diverse development of on-chain applications.

The launch of Degen Chain attracted various applications, including Drakula, Zora, Perl, and Bracket.Game, choosing DEGEN as their transaction token. These applications span across social media, NFT minting, skill-based prediction games, and sports event voting transactions, showcasing the potential of Degen Chain in supporting novel blockchain applications. To further facilitate ecosystem development, the Degen and Syndicate teams provide a range of developer tools, including transaction cloud APIs, lowering entry barriers for developers and facilitating building and innovation on Degen Chain.

Through its advanced technical architecture, community-centric ecosystem design, and robust support for developers and applications, Degen Chain demonstrates new possibilities for an L3 solution. It not only provides community members with more interaction and reward opportunities but also paves the way for innovation and diversification of blockchain applications.

The Technical Prowess of the Syndicate Team Will Determine the Future Trajectory of Degen Chain, Warranting Continuous Attention.

On March 28th, Syndicate announced the launch of Degen Chain on the X platform. This is a Layer 3 chain designed specifically for the Degentokenbase community, utilizing Arbitrum Orbit and AnyTrust technologies to enhance settlement efficiency and data availability. The launch of this new chain not only signifies a community token—$DEGEN—successfully owning its L3 platform but also demonstrates ambition in exploring new possibilities in blockchain technology.

Syndicate is committed to being a technical partner of Degen Chain, jointly pioneering new territories in the EVM L3 field. With Syndicate’s technical support, Degen Chain provides developers with powerful tools such as transaction cloud APIs, greatly facilitating the convenience and innovation of development activities on its platform. Such a collaborative model not only accelerates the exploration and application of L3 technology but also provides rich resources and opportunities for the developer community.

As a significant participant in the Web3 space, Syndicate aims to create a crypto-native social investment platform through its protocol, thereby reducing the barriers to starting and operating DAO-style investment clubs. This not only supports investment in blockchain assets such as tokens and NFTs but also expands to a broader range of asset investments, including startups, providing services such as legal resources and bank accounts.

The Syndicate team consists of experts in blockchain technology, venture capital, and corporate strategy from top institutions such as Stanford University. They are passionate about driving the application and innovation of blockchain technology, particularly in the development and promotion of L3 solutions.

With Syndicate continuing to drive developer-friendly L3 technology solutions, the birth of Degen Chain not only opens a new chapter in L3 applications but also provides new perspectives and motivations for exploring the future of blockchain technology. With such collaboration and technological drive, can Degen Chain become a new paradigm for driving blockchain innovation and community participation? We eagerly await the outcome.

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