Blast, the Layer-2 network built on Ethereum, has achieved a significant milestone with its total value locked (TVL) surpassing $2.1 billion. This leap marks an extraordinary growth of more than 2200% since the introduction of its bridge protocol on November 22nd. The surge comes just before the network is set to launch its mainnet at the end of the month, which has sparked widespread interest within the crypto community.
Anticipated Airdrop Fuels Asset Lock-in
A significant portion of the TVL can be attributed to the eagerness of airdrop enthusiasts, who are depositing their Ethereum holdings into Blast in anticipation of a promised token airdrop scheduled for May. This expectation has resulted in a flood of assets being tied up in the protocol in the hopes of future rewards.
The upcoming launch of the Blast protocol has been a topic of debate amongst crypto enthusiasts due to the stipulation that once assets are deposited, they cannot be withdrawn until the mainnet goes live. This has led to some concerns over the safety and liquidity of these locked funds.
Rumors and Controversies Surrounding Blast
Additionally, Blast has been at the center of controversy following allegations of a rug-pull scam related to a protocol called Risk on Blast, which reportedly collected 420 Ethereum in a presale before funds were moved and social media accounts deleted. Despite these concerns, Blast distinguishes itself as a scaling solution for Ethereum, offering returns on deposits in both Ethereum and stablecoin.
The founder of Blast, who operates under the pseudonym PacMan and is also behind the NFT platform Blur, has defended the protocol’s lucrative return rates, attributing them to integrations with platforms like Lido and MakerDAO. As Blast approaches its mainnet launch, the protocol has secured a $20 million seed investment round led by prominent firms Paradigm and Standard Crypto.