Degen Chain Faces Extended Downtime: No Blocks Produced in 53 Hours

The Ethereum layer 3 blockchain, Degen Chain, has experienced a prolonged period of inactivity, failing to validate transactions or generate new blocks for over 53 hours, rendering the network and its associated applications non-operational.

Degen Chain encountered a halt in operations at 8:15 pm UTC on May 12, marking the last instance of block production, as reported by its block explorer.

Functioning as one of the few layer 3 blockchains settling transactions on a layer-2 network, Degen Chain utilizes the Ethereum layer 2 chain Base for settlement purposes and relies on the AnyTrust protocol for data availability functions.

Degen Chain hasn’t produced a new block in over 50 hours. Source: Degen Chain

According to an announcement on May 14 via X post, the official Degen Chain account acknowledged the downtime and assured users of ongoing efforts in collaboration with their development partner, Conduit, to address the issue.

Conduit attributed the downtime to a "custom config change," resulting in the cessation of block production for both Degen Chain and the gaming network Apex. It further disclosed that nodes for Degen Chain are currently undergoing resynchronization from the genesis block.

"We’re working with both teams and Offchain Labs to restore service and minimize impact to users," stated Conduit on X.

Degen Chain provided an estimate for the network's restoration of functionality, tentatively scheduled for 1:00 pm UTC on May 15 (6:00 am PST on May 15), following the completion of the resynchronization process.

Originally developed for its native memecoin, DEGEN, Degen Chain hosts various decentralized applications, including DegenSwap, Mint Club, and the bridging service Relay bridge, all of which remain inoperable during the blockchain's downtime.

The native DEGEN token has witnessed a decline of 24% from its seven-day peak of $0.02 on May 13 to $0.015, based on CoinGecko data.

DEGEN’s seven-day chart shows a price drop since Degen Chain’s block stall. Source: CoinGecko

Layer 3 blockchains have sparked debate within the crypto industry, with Polygon CEO Marc Boiron expressing skepticism, arguing that Layer 3 solutions "exist only to take value away from Ethereum and onto the [layer 2s] on which the L3s are built."

In contrast, proponents of Layer 3 networks, such as Arbitrum Foundation researcher Patrick McCorry, advocate for their potential benefits, emphasizing their role in facilitating cheaper transactions through layer 2 networks acting as the settlement layer.