Polygon CEO Marc Boiron sparks debate on Layer-3 (L3) networks as Degen Chain racks up millions in profits.

The emergence of Degen Chain, launched on March 28, has swiftly garnered attention within the cryptocurrency space, drawing both enthusiasts and critics. Developed by Syndicate using Arbitrum Orbit technology, Degen Chain serves as a cost-effective network specifically designed for the Degen token (DEGEN).

The Degen token has gained prominence among users of the Farcaster web3 social media platform, which operates on Base, an Ethereum Layer 2 network. Degen Chain itself operates as a Layer 3 (L3) network, providing a platform for various meme coins denominated in DEGEN. Notably, Farcaster's exponential growth and its parent company's pursuit of unicorn status have greatly benefited early investors in the Degen token.

While meme coins have long been a source of wealth in the crypto sphere, Degen Chain stands out as one of the first L3 chains to gain significant traction. With trading volumes reaching tens of millions of dollars, one investor reportedly turned a $113,000 investment into nearly $3.4 million in profit.

Boiron, speaking on behalf of Polygon Labs on April 1, emphasized their commitment to Layer 2 (L2) scaling solutions, expressing skepticism towards the necessity of L3 networks. He argued that L3 networks could divert value away from Ethereum onto the L2 networks on which they are built, potentially undermining Ethereum's value and security.

However, Boiron's viewpoint sparked a broader discussion on the role and potential risks associated with L3 technologies. While some argue that L3 protocols offer solutions for scalability, interoperability, and specialized decentralized applications, others, like Boiron, question their compatibility with Ethereum's core mission of scaling solutions.

Despite the skepticism surrounding L3 networks, innovators like Orbs, Xai, and zkSync Hyperchains continue to explore the capabilities of Layer 3 protocols, indicating a growing interest in this emerging sector of the blockchain landscape.