2024-04-01 18:11:23
The CEO of Polygon Labs strongly criticizes L3 chains for taking away value and security from Ethereum and says the company will not develop its own L3 network. Meanwhile, memecoin trading activity has exploded on one of the layer 3 networks, Degen.
Since the launch of the Degen Chain network last week, it has attracted many speculators, but its success cannot be without its critics.
Degen Chain, built using Arbitrum Orbit, was launched by Syndicate on March 28th infrastructure providerand serves as a special ultra-low-cost network for the Degen token ($DEGEN), which has become the de facto social token for users of the Farcaster Web3 social media service. Since Farcaster runs on Base, a layer 2 Ethereum network, Degen Chain is therefore a layer 3 network, or L3.
As Farcaster sets new user activity records and its parent company may receive a unicorn valuation, Degen’s early adopters have turned their small bets into fortunes: thez is one of the traders invested less than $7,000 in the token and he walked away with more than $2 million in profits.
Wealth from memecoins is nothing new in crypto, Degen is one of the first L3 chains to achieve significant acceptance among its users. On the Degen Chain, an ecosystem containing even more memecoins, which is denominated in $DEGEN, trading volume measured in millions of dollars took place.
However, not everyone shares the enthusiasm for L3 networks such as Degen Chain. CEO of Polygon Labs, Marc Boiron expressed his displeasure with the focus on L3s in an X post on Sunday: “I’ll state the obvious: L3s exist solely to extract value from Ethereum and move it to the L2s that L3s are built upon. *L3 is not needed for scaling* and therefore Polygon Labs is not working on L3.”
Boiron believes that L3 networks will drain security and value from Ethereum’s base layer. “If every L3 settled on an L2, Ethereum would receive virtually no value, thus putting Ethereum’s security at risk” Boiron wrote in another X post.
Polygon Labs is mostly different About Layer 2 Ethereum scaling solutions known including Polygon and Polygon zkEVM chains and other services. Polygon zkEVM went down for a short time last weekend, but has since been restored.
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