Polygon CEO debates L3 network utility, Degen Chain makes millions

Since its introduction on March 28, the Degen Chain 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 (DEGEN).

The token has emerged as a prominent asset among users of the Farcaster web3 social media platform, which operates on Base, 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.

While crypto is no stranger to wealth generation through meme coins, 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.

Polygon CEO speaks out about L3s

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 (ETH) needs.

“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.

In a clarifying response, 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.

“The objective was to scale Ethereum when nobody else did it,” Boiron said. “L3s are not consistent with that mission.”

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 decentralized applications, are emerging as a dynamic component of the blockchain landscape.

Innovations from entities such as Orbs, Xai, and zkSync Hyperchains exemplify the growing exploration of L3 capabilities, although the sector remains nascent.