Despite several controversies, L2 network Blast crosses $2 billion in TVL just before the February-end launch of its mainnet.
Blast Announces Mainnet Launch
The Ethereum-based Layer2 network Blast is set to launch its mainnet on February 29, as announced on social media. Prior to its mainnet launch, Blast has already amassed over $2.1 billion in total value locked (TVL), marking a staggering increase of over 2,200% since its bridging protocol went live on Nov. 22. The majority of the locked value originates from users anticipating a future airdrop of the Blast token, scheduled for May.
In anticipation of its mainnet launch, the protocol has already secured a substantial $20 million seed round led by Paradigm and Standard Crypto.
Addressing Criticisms
Blast positions itself as a Layer2 solution aiming to enhance the scalability and efficiency of blockchain technology. Through its protocol, users can stake their funds to earn native yields in Ether (ETH) and stablecoins.
Despite the excitement surrounding Blast, criticisms have emerged, particularly regarding its yield generation. Blast's founder, Tieshun Roquerre, defended the platform against skepticism, attributing its yield generation to reputable protocols like Lido and MakerDAO.
Controversies and Challenges
The launch of Blast in November 2023 was not without its controversies. Users faced restrictions on fund withdrawals until the mainnet launch, sparking negative speculation. Crypto venture capital firm and one of Blast’s seed backers, Paradigm, had even criticized the protocol’s marketing strategy, stating that it crossed the line with its messaging and execution. Paradigm’s head of research, Dan Robinson, claimed the delayed launch could set a poor precedent for future developers.
In a recent setback, a gambling protocol called "Risk on Blast" executed a rug pull on February 26, further fueling uncertainty around the Blast protocol. The project, which raised 420 Ether for a presale token called RISK, lasted for a single day only. After accumulating around $1.35 million worth of funds, the alleged fraudsters abruptly moved funds to noncustodial crypto exchange ChangeNOW and deleted related social media accounts.
The Significance of Layer2 Solutions
Despite challenges, Layer2 solutions like Blast play a crucial role in addressing the limitations of current blockchain networks. As demand for blockchain technology grows, scalable and efficient solutions become increasingly essential. The launch of Blast's mainnet represents a significant step forward in this development. Despite facing criticisms and challenges, the layer2 protocol remains poised to offer improved scalability and efficiency to users.
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.
