$400 Million in ETH Withdrawn from Blast L2 Network Following Mainnet Launch

by Margarita Armstrong

Round $400 million in Ether (ETH) has been withdrawn from the Ethereum layer-2 network Blast after the launch of its mainnet on February 29 at 9:00 pm UTC. This unlocked nearly $2.3 billion in staked crypto that was once previously locked up on the network.

Blast, an optimistic rollup blockchain scaler, provides users as much as a 4% annual return on deposited Ethereum (ETH) and 5% on stablecoins held on the network, generated from staked ETH and United States Treasury Funds (T-Funds) managed by MakerDAO.

Ethereum Layer 2 Chain Blast Releases Decent Mainnet

Blast 메인넷이 출시되었습니다.

얼리액세스 사용자는 메인넷으로 브리지하고 다른 곳에서는 찾아볼 수 없는 Blast 네이티브 Dapp을 사용할 수 있습니다👇 pic.twitter.com/BPBnxMxWbt

— Blast (@Blast_L2) March 1, 2024

Blast’s total price locked (TVL) seen a high of $2.27 billion on Feb. 29, which has now fallen 17.5% to $1.87 billion after the launch with proper below $400 million withdrawn, in step with DeFiLlama recordsdata.

Sources on the platform encompass roughly 469,000 ETH, 77.3 million USDC, 67.1 million USDT, 148,000 stETH and 24.7 million DAI , in step with a Dune Analytics dashboard. Customers can now withdraw their funds with the launch of the are living mainnet.

Blast, which claims to be the “easiest Ethereum L2 with native yield,” attracted well-known consideration with its deposit-easiest bridge announced in November. This bridge rapid amassed over $2 billion in deposits, with depositors receiving Blast “factors” for retaining their ETH.

The realization was once that these factors could perchance eventually be redeemed for a token airdrop, prompting merchants to derive interplay in “factors farming” to salvage them. In line with the Blast web utter, the airdrop is utter for Would possibly perchance well moreover 2024.

Crypto protocols utilize airdrops to provide out tokens to early users and contributors, in most cases helping in decentralized governance as effectively. Blast goals to derive an affect within the crowded Ethereum scaling market—which contains networks enjoy Polygon, Arbitrum, Optimism, and Terrifying—by incentivizing users with both native yield on staked cryptocurrency and a allotment of tokens by the utilize of airdrops.

With the network now are living, merchants retaining Blast Beneficial properties derive the possibility to redeem their deposits and could honest ogle better opportunities in other locations. Provided that the worth of ETH has appreciated vastly since Blast opened to depositors unhurried last three hundred and sixty five days, from round $2,000 to about $3,450, some merchants is in all probability looking out to capitalize on earnings.

Blast Network Hits $2 Billion TVL Milestone Amid Controversy and Alleged Exit Rip-off

Blast, backed by Paradigm, at the starting set confronted criticism, with issues raised about its one-arrangement bridge and the optics of soliciting deposits whereas aloof below vogue.

Regardless of this skepticism, Blast grew to turn out to be one in all potentially the most stuffed with life layer-2 networks in phrases of deposits even sooner than the mainnet launch, attracting $2.3 billion in deposits from 181,000 users and producing an annual yield of $85 million.

The network had surpassed its $2 billion TVL milestone for the first time days earlier, on Feb. 27. Airdrop hunters had been actively farming the blockchain in hopes of receiving a Blast token, which the group has announced will almost definitely be disbursed in Would possibly perchance well moreover.

The network moreover skilled its first alleged exit rip-off on February 26, when a gambling protocol known as “Risk on Blast” disappeared with 420 ETH, same to round $1.25 million at the time, silent from particular person funds for its marketed RISK presale token.

In November 2023, Dan Robinson—Head of Analysis and General Partner at Paradigm, the VC company that co-led Blast’s $20 million seed round—wrote that the company idea the “announcement this week crossed traces in both messaging and execution.”

He extra criticized the resolution to lock up funds for months and acknowledged that “grand of the marketing cheapens the work of a crucial group.” Blast founder Pacman admitted that Paradigm asked them to “derive modifications” to the launch opinion, however he acknowledged that it was once ultimately Blast’s have resolution to derive.

Regardless of these early challenges, Blast has garnered beef up from several projects, including NFT platform Zora and pricing oracle provider Pyth, both of which announced their integration with Blast on Thursday. Moreover, builders creating decentralized apps (dApps) on Blast are utter to receive 50% of the upcoming airdrop allocation, extra bettering the ecosystem’s allure.

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