Degen Chain, an Ethereum (CRYPTO:ETH) layer 3 blockchain, has experienced a significant disruption, failing to produce a block or validate transactions for over 53 hours.

The network, relying on Ethereum's layer 2 chain Base for settlement, stalled on May 12, and efforts to restore functionality are underway.

The downtime, attributed to a "custom config change," has impacted various decentralised applications hosted on Degen Chain, including DegenSwap (CRYPTO:DSWAP) and Mint Club (CRYPTO:MINT).

As a result, the native token DEGEN has seen a 24% decrease in value over the past week.

While layer 3 blockchains have faced criticism, it may improve transaction efficiency on layer 2 networks.