Ethereum Layer-2 network Blast has announced the launch of its official mainnet, allowing users to withdraw their previously locked funds on the network.
The launch of the Blast mainnet unlocks nearly $2.3 billion in staked crypto, with users having already withdrawn $400 million from the network.
Blast Mainnet Is Live
The launch was confirmed on the 29th of February at 9 pm UTC, and unlocked almost $2.3 billion in staked crypto that was locked on the network. According to data from Dune Analytics, assets held on the network include 469,000 ETH, 44.3 million USDC, 67.1 million USDT, 148,000 stETH, and 24.1 million DAI. Users on the network have already withdrawn $400 million in ETH from the platform.
“Blast has reached $2 Billion in TVL. 157,638 community members are now earning yield + Blast Points.”
Blast gives users up to 5% yield on ETH and stablecoins held on the network, generated from staked ETH and United States Treasury bills that blockchain protocol MakerDAO manages. Assets sent to the network before launch were locked, with users unable to withdraw them until now.
Early access to Blast began in November 2023 when the platform allowed users to earn yield through bridging and blast points. At the time, Blast stated on social media platform X,
“Blast is built on the principle that markets march towards efficiency. More specifically, liquidity flows to where it can get the highest yield. On Blast, your balance compounds automatically and earns Blast rewards on top.”
Surging TVL
Blast’s total value locked reached a high of $2.27 billion on the 29th of February. However, this has since fallen by 17% to $1.87 billion. This is because, after the launch, users withdrew $400 million from the platform. The platform saw its total value locked cross the $2 billion mark for the first time on the 27th of February. Blast also saw interest from airdrop hunters who flocked to the blockchain hoping to access a Blast token, which the team says should be launched in May.
“Blast has amassed more than $2 billion in TVL even before its mainnet launch, placing it right behind L2 giants like Arbitrum One and OP Mainnet. It’s safe to say that we should expect some level of mania and speculation with the official launch, not to mention its eventual airdrop.”
Some Controversy Too
Blast’s launch also came with its fair share of controversy. Research head at Blast seed investor Paradigm Dan Robinson had stated in November 2023 that the firm did not agree with the company’s decision to launch the bridge before the Layer-2 network or not allow users to withdraw their assets for three months.
“There are a lot of components of Blast that I’m excited about and would be interested in engaging with people on. That said, we at Paradigm think the announcement this week crossed lines in both messaging and execution. For example, we don’t agree with the decision to launch the bridge before the L2 or not to allow withdrawals for three months since we think it sets a bad precedent for other projects. We also think much of the marketing cheapens the work of a serious team. We don’t endorse these kinds of tactics and take our responsibility in the ecosystem seriously.”
Users were also critical of the fact that they could not withdraw their rewards until the mainnet launch, stating that Blast’s model resembled a Ponzi scheme. However, the team at Blast denied these claims. Blast has also already seen an alleged exit scam when a gambling protocol called “Risk on Blast” stole 420 ETH worth around $1.25 million of user funds collected for its RISK presale token.
Blast had raised $20 million in November 2023 in a funding round led by crypto-focused venture firms Standard Crypto and Paradigm.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
