Degen has a market capitalization of over $1.5 billion. How did it become the No. 1 golden dog on Base?

Original title: "What makes $DEGEN a $1B project in three months"

If you have used the Base chain recently, then you must know the above The most popular token is called $Degen, which today has a market cap of over $1.5 billion. When the Degen channel on Farcaster goes live in January 2024, it will allow users to reward quality content creators with $Degen. So far, there are over 83,000 holders and still growing rapidly. So, how did $Degen develop into a "golden dog" worth billions of dollars? This article will take you to explore together.

New airdrop gameplay (reward)

Since January this year, $Degen has quickly become popular in the Farcaster community, and community members reward their favorite high-quality content in the form of comments on DEGEN. Degen will earn daily stipends based on user activity and engagement on Farcaster. The airdrop amount is calculated based on the total rewards received from others each season, so users need to post quality content on Farcaster to receive rewards. Many active users have even reached the daily reward cap of thousands of dollars.

Unique Community

$The price of Degen rises with the popularity of the community. At this time, the market value of Degen rises from 10 million to about 50 million, and In turn, Degen has brought a wave of user growth to Farcaster.

Pingfeng's description of Degen's rewards is very apt:

The mutual rewards of Degen make me feel like a group of people standing around a big bowl. Everyone can pick up a spoon of similar length and diameter and feed it to others, but not to themselves. How much they can eat depends on their own reward. The more they interact and reply to each other, the more rewards they receive.

Angel round financing

In February, Degen announced the completion of an angel round financing of 490.5 ETH (approximately US$14.7 million), led by 1confirmation and Farcaster OG and other agencies are involved. These funds will be used to grow the Degen ecosystem and community. It can be seen that part of the shares have been given to some community projects, such as Drakula, which also laid the foundation for Degen’s practicality.

Practicality

The decentralized TikTokDracula on the Base chain was launched on March 14th. Dracula was created by Alex Masmej, the issuer of fan token $ALEX, and received investment from Paradigm.

The Dracula application uses degen as the token due to a previous stipend of 10 million DEGEN received from the Degen community (currently worth approximately $500,000). Users can use degen to purchase their favorite bloggers, similar to the gameplay of Friend tech. Users can also earn points by posting and watching short videos, sharing links, and purchasing creator tokens, and are rewarded with BLOOD. Additionally, similar to the NFT chip platform zora, community projects Bracket.Game and Rounds.wtf use degen as their native tokens. By this time, Degen's market capitalization had grown to approximately $70 million to $100 million. DegenCast will also use Degen to purchase creator keys.

Degen L3

Degen began its impressive journey on March 20th. First, on March 29, Degen announced a partnership with Syndicate to develop Base-based L3. The Gas token of Degen Chain is also DEGEN. As of now, Degen Chain has conducted more than 4 million transactions and has more than 100,000 wallets.

The second piece of news is that Farcaster’s parent company, Merkle Manufactory, raised funding at a $1 billion valuation, led by the founders of Paradigm. Since Farcaster did not issue tokens, the community began to view the financing as a positive development for $Degen.

Since Degen launched L3, its entire valuation space has been compared with major public chains, and it can even be said that $Degen has become Base’s token. The market cap soared like a rocket, reaching $2 billion in a matter of days.

Inspiration from Degen

Degen originated from the Farcaster community and is rooted in the Base chain. It can be said that it and Farcaster/Base achieve each other. Degen's price attracts users, and without the Farcaster community, Degen wouldn't exist. The Farcaster community project also provides an application scenario for Degen.

The narrative of Degen has evolved from the self-entertainment token of a community project to the social utility token of the core project, and then to the Gas token of the public chain. From 10 million to 100 million to 1 billion, every advancement represents an increase in valuation size.

The rise of Degen also provides a path for the development of Farcaster community projects. Follow-up projects such as Drakula, DegenCast, etc. are worth looking forward to.

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