Crypto

Degen Chain Resumes After 50-Hr Outage, Market Cap Holds

Degen Chain resumes after 50-hour outage, addressing technical issues and impacting DEGEN token value.

By Mackenzie Crow

5/15, 06:14 EDT
Bitcoin / U.S. dollar
article-main-img

Key Takeaway

  • Degen Chain, an Ethereum layer-3 blockchain for meme coins, resumed operations after a 50-hour outage due to a technical issue.
  • The outage was caused by a "custom config change" in its rollup infrastructure platform, Conduit.
  • Despite the hiccup, Degen Chain boasts a market cap of under $200 million and had previously reached $100 million in trading volume.

Degen Chain Outage Ends

After a significant two-day outage, Degen Chain, an Ethereum layer-3 blockchain dedicated to meme coins, has resumed operations. The blockchain faced a complete halt in its functionality, unable to validate transactions or produce new blocks since 20:15 UTC on May 12. This disruption in service lasted for over 50 hours, causing concern among its users and investors. Degen Chain relies on Conduit, a rollup infrastructure platform, to manage its transactions and ensure data availability. Rollups are crucial for processing transactions off-chain before bundling and submitting them to Ethereum, which enhances speed and reduces costs. This technology enables Degen Chain to operate efficiently as a layer-3 blockchain, catering to high volumes of transactions.

Technical Challenges and Solutions

The outage was attributed to a "custom config change" by Conduit, which inadvertently halted block production on Degen Chain. This incident underscores the technical challenges inherent in blockchain operations, especially for platforms that push the boundaries of scalability and efficiency. On May 14, Degen Chain announced its collaboration with Conduit to address and resolve the downtime issue. This partnership highlights the importance of robust technical support and the need for continuous monitoring and quick response mechanisms to maintain blockchain stability and reliability.

Market Impact

Degen Chain's outage had a noticeable impact on the market, particularly affecting the value of its native token, DEGEN. The token's value dropped by 6% to $0.16, reflecting the immediate reaction of the market to the platform's operational challenges. Despite this setback, Degen Chain has experienced significant growth since its launch earlier this year, quickly reaching $100 million in trading volume driven by the meme coin craze. According to data from DefiLlama, the chain boasts a market cap of just under $200 million and a total locked value of $2.17 million. These figures highlight the platform's rapid adoption and the vibrant community of investors and users rallying around meme coins.