Kofi Mensah Recent data shows that Blast, an Ethereum layer two (L2) protocol, now boasts a staggering $1 billion in its total value locked (TVL). This marks a significant increase, over twelve times its initial value, since its inception in late November.
Blast’s Milestone of $1 Billion in TVL
The protocol had a modest beginning, with its value locked at $89.59 million on November 22, 2023. However, the figure has now ballooned to an impressive $1.135 billion. Blast currently holds the position of the 17th largest decentralized finance (defi) protocol in terms of TVL, positioned between Juststables and Marinade Finance. This ranking is based on data from defillama.com.
Blast distinguishes itself with unique offerings like native staking and yield enhancement strategies involving ether (ETH) staking and real-world assets (RWAs). The NFT marketplace Blur, developed by Pacman, is responsible for creating Blast.
Paradigm and Standard Crypto have played a pivotal role in funding Blast. Nonetheless, a Paradigm executive expressed concerns over certain aspects of Blast’s launch, terming them as “crossing lines.” The platform has also faced criticism and was accused of operating a Ponzi scheme, a claim vehemently denied by Pacman.
Blast offers its depositors approximately 5% interest on their locked funds in the defi protocol. Additionally, these depositors accumulate points redeemable for a soon-to-be-released digital currency. However, there is a restriction on the transfer or withdrawal of these funds until February 2024.
In a recent conversation with DL News, Nftperp founder Joseph Liu discussed how Blur’s NFT platform, with Blast’s integration, plans to introduce a decentralized perpetual futures exchange for NFTs. Nftperp, which provides similar services, has recently raised $3 million.
Liu acknowledged Blur and Blast as major competitors in the market, according to his statement to DL News. Following the achievement of the $1 billion mark, Pacman shared his excitement on social media platform X, emphasizing the communal benefits of Web3 and expressing eagerness for future developments.
Pacman stated, “Closing out the year with this milestone is incredibly exciting. The true power of Web3 lies in its communal gains. However, I believe there’s more to be done to ensure value creation benefits the end-users, who are the backbone of the onchain economy. Looking forward to next year.”
What are your thoughts on Blast exceeding the $1 billion threshold in TVL? We welcome your views and opinions on this topic in the comments section below.
Table Of Contents
Frequently Asked Questions (FAQs) about Ethereum L2 Blast
What is Blast in the Ethereum L2 Protocol?
Blast is an Ethereum layer two (L2) protocol that recently surpassed $1 billion in total value locked (TVL). It offers native staking and strategies for yield amplification through ether (ETH) staking and real-world assets (RWAs).
How did Blast achieve a $1 billion milestone in TVL?
Blast achieved this milestone through significant growth since its launch in late November 2023. Its unique features and strategic investments from Paradigm and Standard Crypto contributed to this rapid increase in TVL.
What is the current ranking of Blast in the decentralized finance market?
As of the latest data, Blast ranks as the 17th largest decentralized finance (defi) protocol in terms of TVL. It is positioned between Juststables and Marinade Finance according to defillama.com.
What are the investment returns offered by Blast?
Depositors in Blast earn around 5% interest on their locked funds within the defi protocol. They also accrue points redeemable for an upcoming airdropped digital currency.
What controversy did Blast face post-launch?
Post-launch, Blast faced accusations of being a Ponzi scheme, which were strongly denied by Pacman, the creator behind the NFT marketplace Blur and Blast.
What are the future plans for Blast?
Blast aims to integrate a decentralized perpetual futures exchange for NFTs via the NFT platform Blur. This integration is set to expand its offerings in the decentralized finance sector.
Can users withdraw their funds from Blast currently?
No, users are currently unable to transfer or withdraw their locked funds from Blast until February 2024, as per the protocol’s guidelines.
More about Ethereum L2 Blast
- Blast’s TVL Milestone
- Ethereum L2 Protocols
- Decentralized Finance Explained
- Understanding TVL in Crypto
- The Growth of Ethereum Layer 2 Solutions
- Pacman and the NFT Marketplace Blur
- Paradigm’s Investment in Crypto
- Standard Crypto’s Funding Strategies
- Decentralized Perpetual Futures Exchange
5 comments
Did anyone else catch the part about Blur and Blast planning to integrate decentralized futures for NFTs? Sounds pretty groundbreaking to me!
wow, Blast really hit the big league with 1 billion in TVL, that’s huge for a new protocol.. not sure about the ponzi scheme accusations though. gotta do more research on that!
Paradigm and Standard Crypto backing Blast is a good sign, but these accusations and the exec’s comments are a bit worrisome, dont you think? i’m on the fence here.
impressive numbers for Blast but being ranked 17th? there’s still a long way to go, gotta keep an eye on how they compete with the big players in DeFi.
Really interesting read, Blast is making waves! But, I’m kinda concerned about the withdrawal restrictions till Feb 2024. Is that normal for such protocols?