Degen Chain's data performance is excellent, but most of the projects it incubates are exit scams?

On March 31, according to Dune data, on the X platform, on-chain analyst NP Hard pointed out that the daily increase in users on Degen Chain is close to that of Optimism and Avalanche, which is half of Arbitrum.
On April 1, Degen Chain attracted attention since its launch, with its native token DEGEN soaring by 500%. The trading volume reached nearly $100 million within 24 hours, completing 272,000 transactions. Over 7,500 contracts and 2,300 tokens are circulating on-chain, but most are Rug Pulls or scams. Degen Swap has a market cap of $14 million, while the meme coin Degen Pepe reached $23 million. Most tokens have a market cap of less than a million, primarily for speculative use. Degen Chain currently does not support stablecoins, only DEGEN trading.

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

Can L3 pose a dimensionality reduction threat to L2? Vitalik has expressed doubts

In the journey of blockchain technology development, the emergence of Layer 3 (L3) chains is seen as a further exploration of existing scaling 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 standpoint, L3 chains aim to enhance the scalability and efficiency of blockchain networks by adding an additional layer on top of L2. Theoretically, such a design can provide higher throughput and lower transaction fees for decentralized applications (DApps) and users. For example, the impressive 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 skepticism. Even leading figures in the blockchain space, such as Vitalik Buterin, have expressed doubts about L3's ability to enhance throughput. Some community members believe that adding more layers may not be the magical solution to improve network performance. Additionally, some projects even conducted humorous activities around L3 on April Fool's Day, reflecting a reserved attitude towards the L3 concept.

The controversy surrounding L3 chains mainly focuses on the feasibility of their technical implementation. The original design 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 further compression is extremely limited, which raises questions about 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 is expected to provide value in specific application scenarios. In particular, for pioneers like Degen Chain, exploring how to achieve a more efficient and economical blockchain network on L3 is undoubtedly an important direction for future research and practice.

Overview of Degen Chain: An L3 network that combines security and scalability, providing a range of conveniences for developers

Degen Chain introduces an innovative L3 solution through its unique technical architecture. It is built on Arbitrum Orbit, an advanced Rollup technology that enables efficient transaction processing and low-cost gas fees. Additionally, by combining settlement base and AnyTrust's data availability framework, Degen Chain can provide a blockchain network that is both secure and scalable. Syndicate collaborates with technology providers such as Conduit, Decent, and Airstack to integrate Rollup solutions, cross-chain bridging, and data APIs, providing strong support for the technical implementation and ecological expansion of Degen Chain.

Degen Chain is not only a technical platform but also represents an active community and ecosystem. Degen was first launched on Farcaster, quickly accumulating over 53,000 token holders and completing over 553,000 transactions through token distribution incentives for content creation and sharing. Compared to other L3 projects, Degen Chain is tailored specifically for the DEGEN token and its community, supporting various new application scenarios such as tipping, community rewards, payments, and gaming. This community-centered design not only deepens user engagement but also provides a rich soil for the diversified development of on-chain applications.
The launch of Degen Chain has attracted multiple applications, including Drakula, Zora, Perl, and Bracket.Game, to choose DEGEN as their trading token. These applications cover various fields, including social media, NFT minting, skill-based prediction games, and sports event voting transactions, showcasing Degen Chain's potential in supporting new blockchain applications. To further promote ecosystem development, the Degen and Syndicate teams provide a range of developer tools for developers on Degen Chain, including trading cloud APIs, which not only lower the entry barrier for developers but also facilitate their building and innovation on Degen Chain.
Through its advanced technical architecture, community-centered ecosystem design, and strong support for developers and applications, Degen Chain showcases a new possibility for L3 solutions, providing community members with more opportunities for interaction and rewards, while also paving new paths for innovation and diversification in blockchain applications.

How the technical strength of the Syndicate team determines the future trajectory of Degen Chain, requiring continuous attention

On March 28, Syndicate announced the launch of Degen Chain on the X platform, a Layer 3 chain designed specifically for the Degentokenbase community, utilizing Arbitrum Orbit and AnyTrust technology to enhance settlement efficiency and data availability. The launch of this new chain not only marks the successful establishment of a community token—$DEGEN—having its own L3 platform but also demonstrates the ambition to explore new possibilities in blockchain technology.
Syndicate is committed to becoming the technical partner of Degen Chain, jointly opening up new horizons in the EVM L3 space. With Syndicate's technical support, Degen Chain provides developers with powerful tools such as trading cloud APIs, greatly facilitating the convenience and innovation of development activities on its platform. This collaborative model not only accelerates the exploration and application of L3 technology but also provides the developer community with abundant resources and opportunities.
As an important participant in the Web3 space, Syndicate aims to create a crypto-native social investment platform through its protocol, thereby lowering the barriers to starting and operating DAO-style investment clubs. This not only supports investments in blockchain assets such as tokens and NFTs but also extends to a broader range of asset investments, including startups, providing services such as legal resources and bank accounts.
The Syndicate team consists of blockchain technology, venture capital, and corporate strategy experts from top institutions like Stanford University, who are passionate about promoting the application and innovation of blockchain technology, particularly in the development and promotion of L3 solutions.
As Syndicate continues to promote developer-friendly L3 technical solutions, the birth of Degen Chain not only opens a new chapter for L3 applications but also provides new perspectives and momentum for the future exploration of blockchain technology. Under such collaboration and technological advancement, will Degen Chain become a new model for driving blockchain innovation and community participation? We shall see.