- Memecoin trading activity has exploded on Degen, a Layer 3 network that runs on Base, which in turn runs on Ethereum.
- Polygon Labs’s CEO has criticised L3 chains for drawing value and security away from Ethereum, stating that the company has no plans to work on its own L3 network.
Since its launch last week, the Degen Chain network has attracted a fair number of speculators—and its success has attracted several critics.
Degen took its first step into memecoin trading activity
The recent launch of Degen Chain has made waves within the cryptocurrency realm. Since its inception on March 28, Degen Chain has seen a surge in speculative interest, with early adopters reaping substantial profits. One particularly fortunate trader turned a modest investment of under $7,000 into over $2 million in profit, showcasing the potential for significant returns in the volatile world of memecoins.
What sets Degen Chain apart is its position as one of the first Layer 3 (L3) networks to gain notable adoption. Operating as an ecosystem for memecoins denominated in $DEGEN, the network has facilitated tens of millions of dollars in trading volume, underscoring its growing influence in the crypto space.
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Polygon Labs CEO criticised Degen
However, not everyone is cheering for the rise of L3 networks like Degen Chain. Marc Boiron, CEO of Polygon Labs, voiced his concerns about the proliferation of L3s, arguing that they divert value and security away from the Ethereum base layer. Boiron’s critique suggests that the focus on L3s may pose risks to Ethereum’s overall security and viability.
Polygon Labs, renowned for its Ethereum Layer 2 scaling solutions, including Polygon and Polygon zkEVM chains, has been a major player in the space. Despite a recent bout of downtime for Polygon zkEVM, the platform has since resumed operations, highlighting the challenges inherent in scaling solutions within the crypto ecosystem.
