Particularly within the Solana and Base networks, there has been a significant influx of capital towards memecoins, including the Degen Chain (DEGEN) on the Base-based Layer 3 network. Despite its recent launch, Degen Chain has already processed about $100 million in transaction volume, with over 272,000 unique transactions in the last 24 hours.

Although Degen Chain is a new network, it has enabled the creation of over 7,500 contracts and 2,300 tokens, with a majority of these tokens being associated with rug pulls and fraudulent activities.

One noteworthy token on Degen Chain is Degen Swap (DSWAP), which has a market value of around $14 million, making it the largest token on the network. Another token, Degen Pepe (DPEPE), valued at $23 million, is a speculative memecoin. However, most tokens on the network have market values below $1 million and are predominantly used for speculative investments.

At present, Degen Chain only supports transactions using its main asset, DEGEN, as it does not facilitate stablecoin transactions. The price of DEGEN has surged over 500% to $0.6 since the network's launch, and it is currently trading at $0.4763 after a slight pullback.

The Emergence of Layer 3 Networks

Degen Chain is a notable Layer 3 network that has been specifically developed for the DEGEN token. The DEGEN token functions as the native gas fee and payment token on Degen Chain, catering to various uses such as tipping, community rewards, payments, and gaming.

Layer 3 networks, situated above Layer 2 networks, offer a tailored and application-specific approach to Blockchain functionality. Unlike Layer 1 or Layer 2 networks, Layer 3 networks prioritize completing specific tasks quickly and verifiably, addressing needs such as payment processing and gaming transactions.