Step 1: Understanding the Concept
Degeneracy of the genetic code means that more than one codon can code for the same amino acid, for example six codons for leucine.
Step 2: Wobble hypothesis
Crick proposed that the third base of a codon pairs loosely with the first base of the anticodon. So one tRNA can read several codons that differ only in the third base.
Step 3: Conclusion
This explains why many synonymous codons exist and are read by fewer tRNAs, i.e. the degeneracy of the code.
Final Answer:
The wobble hypothesis explains the degeneracy of the genetic code.
\[ \boxed{\text{(D) }\text{degeneracy}} \]