The meme coin craze propels Degen Chain to $100 million in transactions, Solana crosses $200, and Base sees 1.5 million daily transactions.
Takeaway Points:
- Degen Chain is a new layer-3 blockchain that recorded $100 million in transaction volumes and over 272,000 transactions in just four days.
- The network launched with over 7,500 contracts and 2,300 tokens; however, many of them are classified as scams or rug pulls.
- The value of the DEGEN token has increased over 500% since launch, trading at 6 cents even though the network does not support stablecoins.
Memes on Crypto Networks: Coin Mania Memes
The cryptocurrency landscape is currently witnessing a significant surge in meme coin activity, with networks like Solana, Base, and the newly launched Degen Chain experiencing unprecedented transaction volumes and user engagement.
Degen Chain, a layer-3 blockchain built atop Base, has seen nearly $100 million in transactional volumes over 272,000 unique transactions within just four days of its operation. Despite the majority being identified as rug pulls or scams, the network’s largest token, Degen Swap (DSWAP), boasts a valuation of over $14 million, while the meme coin Degen Pepe (DPEPE) has reached a staggering $23 million valuation.
Base and Solana Networks Boom
The meme currency craze that has helped Solana’s SOL token surpass its previous high of $75 billion in market capitalization has also caused the token to trade above $200 for the first time since November 2021. An increase of $3.2 million in fees over a 24-hour period has resulted in a spike in the network’s KPIs, which include active wallets, total value locked (TVL), and network volumes.
Corresponding to this, transaction volume on Coinbase’s Base blockchain has increased thrice to over 1.5 million per day, and the total amount of funds locked on the network has reached about $1 billion. The previous week has seen price gains for tokens on Base of high to 1,300%, resulting in fees of $1.8 million.
Network Congestion is Caused by High Demand
The explosive popularity of meme coins on these networks has not come without its challenges. High gas fees on Base, exceeding those before the Dencun upgrade, have been reported, with network congestion and stuck transactions becoming prevalent.
This congestion is largely attributed to meme coin trading and trading bots aggressively buying tokens shortly after their issuance. Despite these issues, social sentiment remains high, with many traders advocating for a rotation of capital to these burgeoning networks.
About
Degen Chain is a layer 3 network created specifically for the DEGEN token. A layer-3 blockchain, which is a relatively recent invention, is an application-specific and configurable blockchain constructed on top of layer-2 protocols.
Networks known as layer 2s, which are based on layer-1 blockchains like Ethereum or Solana, have the ability to settle transactions more quickly and affordably than the underlying system.
A layer-3 network’s main concept is to have a blockchain that can verifiably and swiftly finish a very specific set of tasks. A layer-3 network will exclusively handle those particular kinds of transactions, which can include payments and gaming transactions.
The DEGEN token will be used as the native gas, or fee payment, token of the chain. Its developers say the chain enables new experiments with tipping, community rewards, payments, gaming, and more.
