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- DEGEN’s on-chain activity nearly doubled, showing increased participation across DeFi, NFTs, and meme coin projects.
- Due to its community-focused model and integration with decentralized platforms, the Degen Chain ecosystem is rapidly expanding.
The recent increase in active DEGEN addresses, which indicates almost doubled on-chain activity, suggests a significant change, according to IntoTheBlock. Particularly in light of its changing ecosystem—which encompasses decentralized finance (DeFi), meme coins, and NFTs—this fast ascent emphasizes growing user interaction with the DEGEN token.
Originally introduced as a meme coin appealing to high-risk, high-reward investors, DEGEN has evolved into a more consistent and generally approved digital asset. Growing numbers of players in the bitcoin market have noticed this change from a narrow speculative asset to a token with more general use purposes.
The number of active $DEGEN addresses nearly doubled in the last week, highlighting a significant increase in on-chain activity alongside its recent price movement. pic.twitter.com/gOKZhCyL45
— IntoTheBlock (@intotheblock) October 2, 2024
Community-Driven Growth on the Degen Chain Powers DEGEN Expansion
The Degen Chain, a Layer 3 blockchain run by communities, is primarily to blame for DEGEN’s current expansion. Designed using Arbitrum Orbit technology, the Degen Chain is meant to enable scalable and affordable transactions.
Being the native gas token in the network, Degen is essential for many operations, including staking, swapping, and liquidity mining on DegenSwap. Degen Chain has seen a spike in user involvement in the past few months, with over 100,000 active accounts and notable daily trade volume suggesting growing liquidity and market depth.
The growing number of active addresses points to more people interacting with the token, therefore supporting its liquidity pools and staking and farming operations. Since more users buying and selling the token usually results in a stabilizing influence on its price, this increased activity usually foretells market expansion.
Driven by more on-chain activity, DEGEN’s price initially surged; yet, volatility is still a major feature of this token since market mood and speculative trade drive price swings.
Though it originated in meme culture, DEGEN has drawn interest for its value inside the larger DeFi scene. Apart from being a gas token, DEGEN is crucial for trading tokens on the Degen Chain and participates in liquidity mining on venues like Aerodrome.
Its community-oriented approach, along with the increasing adoption of DEGEN in many distributed applications, has positioned it as a token to keep an eye on in the erratic crypto market.
Still, the quick climb of the token has not been without difficulties. Early October saw DEGEN’s price rise noticeably; it peaked following more on-chain activity, but it has lately dropped sharply.
Meanwhile, the token is trading at $0.007207 as of right now, down 34,00% over the last 24 hours, a notable decline following price rallies on October 1st and 2nd.
Previously, according to CNF, Coinbase added Ionet and DEGEN on its listing road map, therefore highlighting the exchange’s dedication to encourage token variety. The utility-driven token Ionet and the community-driven token DEGEN show the great range of assets Coinbase aims to support.
