Bankless: Why did the meme currency DEGEN surge so much in March?

Author: Jack Inabinet, Bankless; Compiler: Deng Tong, Golden Finance

Culture, Catalyst and Coinbase. Memecoin DEGEN came to life last month as the base season accelerated, with holders receiving 4,000% returns in March. What was the catalyst that propelled DEGEN to reach a unicorn valuation, and can it continue this momentum?

In hindsight, DEGEN appears to be one of the most successful examples of leveraging two of the most popular cryptocurrencies: memecoin and Base.

Early adopters of Farcaster are rewarded with DEGEN on Base, and the launch of TIP solidifies the token’s status as the primary memecoin for Web3 social applications, making it the best asset to buy for Farcaster upside risk .

After the implementation of EIP-4844, there was a huge surge in transaction activity on Base, indicating that the chain is the preferred choice for on-chain users, but the chain’s tokenless The nature forces people to look for native assets to express their stance. DEGEN fills this gap, turning from a mere game on Farcaster into a cultural currency for the entire Base ecosystem.

While external catalysts have contributed significantly to DEGEN’s success, recent internal developments have also played a key role, with the announcement of DEGEN Chain on Thursday helping the token grow yesterday An increase of 285%.

Degen chain and Web3 Deployed jointly by infrastructure provider Syndicate, which will use DEGEN as its Gas token and is one of the first L3s built specifically for the community, the move is intended to facilitate experimentation with a variety of DEGEN-enabled applications, including tipping as well as payments and Community rewards for the game!

Since DEGEN is the gas token of Degen Chain, the native bridge will convert all deposits to the chain into DEGEN , gives the token real utility and generates direct buying pressure, factors that are positively reflected through price increases.

Additionally, since there is currently no fast bridging solution on Degen Chain, depositors must wait for the standard 7-day optimistic challenge period before withdrawing funds from the network, effectively locking them out of the network. Locked in a hodgepodge of riskier Memecoins native to DEGEN and L3.

Given that DEGEN successfully Branding itself as Base's cultural currency, and with the project looking to create useful infrastructure, the token appears to be a prime candidate for future listing on Coinbase and potential investment from the Base Ecosystem Fund.

Tokens from other popular Base applications, including Aerodrome, have previously been favored by Coinbase to support projects built on its chain, and such events could have a positive impact on price.