Blast is the newest Layer 2 community to burst into the scene within the final week and has taken the decentralized finance (DeFi) world by storm already. This community which seemingly got here out of nowhere has backing from Paradigm, and as its recognition has risen, it has surpassed Base and Cardano’s Whole Worth Locked (TVL) in lower than every week after launch.
Blast TVL Crosses $565 Million
The Blast community was officially announced on November 21 and it shortly garnered help from crypto buyers. Within the first day, the community noticed over $81 million in crypto locked. And in two days, the determine had shortly grown above $123 million.
Regardless of a number of the FUD (Concern, Uncertainty, and Doubt) that has adopted the launch of the community, buyers have continued to bridge their assorted into it. By Sunday, November 26, the entire worth locked on the Blast community had formally crossed $544 million, in accordance with data from DeFi tracker DeFiLlama.
Supply: DeFiLlama
This determine places the community’s TVL forward of older rivals akin to Coinbase’s Base. Whereas Blast’s TVL sits at $544 million, the Base TVL is at $338.26 million. Because of this Blast’s TVL is presently 60% larger than that of Base.
In the identical vein, the Blast TVL can also be approach forward of that of Cardano. Presently, the Cardano TVL sits at round $330.07 million, just a bit decrease than Base, and round 61% decrease than that of Blast.
New L2 Attracts Criticism From DeFi Buyers
Amid the fast development that Blast has loved, it has additionally drawn criticism from DeFi investors. The considerations have ranged from safety to how the community is being run. Probably the most pertinent criticisms has stemmed from the truth that all the crypto being bridged to the community will likely be locked till subsequent yr.
The community revealed that buyers will be unable to entry their locked funds till February 2024. As well as, Blast guarantees customers yield on their Ethereum (ETH) and stablecoins being bridged to the community, however with no readily discernible approach of how this yield will likely be earned.
Some members of the crypto neighborhood have, nonetheless, discovered that the funds have been being deposited into the Lido DAO protocol. Apparently, Blast is presently earning round $1.5 million a month by depositing the bridged funds into Lido. This has additional raised considerations in regards to the rising dominance of Lido, which is headed towards 33.3% and will pose a danger for the Ethereum network.
Nonetheless, Blast continues to dominate conversations round DeFi on social media. There’s now a complete of 266,130 ETH locked on the community, with the expectations of an airdrop occurring in 2024.
Whole DeFi market cap at $57.26 billion | Supply: Crypto Total DeFi Market Cap on Tradingview.com
Featured picture from The Information Crypto, chart from Tradingview.com
