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Degen Chain's trading volume surpassed one billion within a week of its launch, with its native token Degen surging over fifty-fold.

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Degen Chain

Degen, originally a tipping token on social media platforms, has transformed into the native Gas token of the innovative concept L3 public chain, soaring more than fifty times in March alone.

$Degen Originated on Social Platform Farcaster

Degen was initially launched as an ERC-20 token on the public chain Base on January 7, aiming to reward builders, content creators, and users in the Base and Farcaster ecosystem through token airdrops to further stimulate ecosystem growth together.

Degen allocates a daily Tip Allowance for users to reward others based on the activity and interaction of Farcaster users. The rewards do not reduce the user's airdrop quota but are deducted from the Tip Allowance. The recipient of the reward will receive the next token airdrop quota, as shown in the figure below.

Degen Season 3 Leaderboard.

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Degen Chain Emerges

With $Degen receiving a $1.5 million investment from institutions like 1confirmation at the end of February, it further laid the foundation for the expansion of the Degen ecosystem.

On March 29, Degen officially announced a partnership with infrastructure developer Syndicate to launch Degen Chain.

Degen Chain adopts Arbitrum's Orbit framework, with its subsidiary AnyTrust protocol ensuring data availability DA, and uses the public chain Base as the settlement layer, designed as a "ultra-low cost" L3 blockchain.

What's particularly noteworthy is that Degen Chain directly uses $DEGEN as the native Gas token of the chain, emphasizing that Degen is the first community token with its own L3.

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$Degen Surges Fiftyfold in a Month, Speculation Sparks Controversy

Since March, Degen has surged from $0.001 to $0.056, a 52-fold increase, ranking 217th in market capitalization with a TVL of approximately $10.96 million, ranking 88th.

On-chain analysts point out that Degen Chain had over 272,000 independent transactions within days of its launch, with a trading volume close to $100 million and over 7,500 smart contracts and 2,300 tokens circulating on the chain, but most are scams.

The speculation surrounding Degen Chain also drew criticism from the CEO of Polygon.

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