The Ethereum Layer-3 network Degen Chain suffered a prolonged outage lasting over 56 hours, during which it was unable to validate transactions or produce new blocks. This caused all applications on the network to be rendered unusable. According to the block explorer, the last block was produced on May 12 at 23:15.

The Degen Layer team is working to resolve the issue, and nodes are being resynchronized from the genesis block to restore functionality.Degen Chain is notable for being one of the few Layer-3 ecosystems that executes transactions on a Layer-2 network.

It prefers the Ethereum Layer-2 network Base and AnyTrust protocol for data availability functions. The official Degen Chain account stated that it is working with its development partner, Conduit, to resolve the downtime. Conduit traced the issue to a specific configuration change that halted block production for both Degen Chain and the gaming network Apex.

The Conduit team is working with both teams and Offchain Labs to restore service and minimize user impact. Degen Chain estimates that the network will resume functionality shortly after resynchronization, which was planned for May 15 at 16:00. Degen Chain hosts a range of decentralized applications, including DegenSwap, Mint Club, and the Relay bridge service, all of which are currently unusable due to the network downtime.

The network's native DEGEN token dropped 24% from its seven-day peak of $0.02 on May 13 to $0.015, according to CoinGecko data. Layer-3 blockchain networks remain a controversial topic in the crypto industry, with some arguing that they exist solely to derive value from Ethereum and add value as long as Layer-3 solutions are created. Others argue that Layer-2 networks act as settlement layers, making transactions cheaper.