This article aims to provide an overview of Degen ($DEGEN), an ERC-20 token launched on Coinbase’s Ethereum layer-2 scaling solution, Base, and tells the story of a crypto whale who has so far made over $2 million from trading DEGEN.

Base is a recently launched Layer-2 (L2) blockchain designed to work in conjunction with Ethereum. Its aim is to address Ethereum’s potential for high fees and occasional slow transaction speeds by providing a more affordable and efficient environment for building decentralized applications (dApps). Base leverages the OP Stack, a modular and open-source technology created by Optimism, another well-known Layer-2 scaling solution.

Key features of Base include its reliance on the underlying Ethereum mainnet (Layer-1) for security, the goal of offering cheaper and faster transactions, and compatibility with the Ethereum Virtual Machine (EVM) for easy dApp development. While initiated by the major cryptocurrency exchange Coinbase, Base plans to progressively decentralize over time.

As Francesco Di Nardo explained in a Medium blog post yesterday, the DEGEN token, which was launched just over two months ago on the Base network, has quickly become a pivotal element of the Farcaster ecosystem, enabling users to reward high-quality content. As detailed by, the token’s introduction aims to foster a vibrant community where contributions are directly appreciated through financial incentives. With close to one-third of its nearly 37 billion max supply already circulating among over 47,000 holders, DEGEN has recently achieved an all-time high of $0.02008, showcasing an astonishing growth of more than 1531% in the past month.

In its initial distribution, 15% of DEGEN’s total supply was airdropped to the active participants of the Warpcast’s /Degen channel, recognizing their contributions. The article highlights an ongoing second airdrop phase, set to distribute another 20% of the tokens, with a final 25% airdrop planned after this phase concludes. These distributions are segmented into monthly seasons, and starting from 2028, the token is expected to see an annual inflation rate of 1%.

Funding for ecosystem development, liquidity mining incentives, and rewards for liquidity providers have been allocated 15%, 10%, and 15% of the total supply, respectively. The liquidity mining initiative particularly encourages users to contribute to the DEGEN/WETH pool on Uniswap, and a similar pool on Aerodrome DEX is directly incentivized by the platform. Notably, the liquidity on Uniswap has already surpassed $8 million, an impressive figure for a token of its age.

Furthermore, the Degen team is at the forefront of developing a layer 3 solution on the Base network, anticipated to be EVM-compatible and characterized by low transaction fees.

According to insights from blockchain analytics firm Lookonchain, a crypto whale invested 854 ETH (equivalent to $3 million) to secure 301.77 million DEGEN at $0.01 each over six days, positioning themselves as the seventh-largest DEGEN holder. This investment has already netted a $2 million (unrealized) profit, given the coin’s current market performance.

At the time of writing, $DEGEN is trading at around $0.01662, up 9.9% in the past 24-hour period.

Featured Image via Degen.