Blast is the most recent 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 per week after launch.
Blast TVL Crosses $565 Million
The Blast community was officially announced on November 21 and it rapidly garnered assist from crypto traders. Within the first day, the community noticed over $81 million in crypto locked. And in two days, the determine had rapidly grown above $123 million.
Regardless of a number of the FUD (Concern, Uncertainty, and Doubt) that has adopted the launch of the community, traders 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 line with data from DeFi tracker DeFiLlama.
This determine places the community’s TVL forward of older rivals comparable to Coinbase’s Base. Whereas Blast’s TVL sits at $544 million, the Base TVL is at $338.26 million. Which means that Blast’s TVL is at the moment 60% greater 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 Traders
Amid the speedy development that Blast has loved, it has additionally drawn criticism from DeFi investors. The issues have ranged from safety to how the community is being run. Some of the pertinent criticisms has stemmed from the truth that all the crypto being bridged to the community will probably be locked till subsequent yr.
The community revealed that traders 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 probably 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 at the moment earning round $1.5 million a month by depositing the bridged funds into Lido. This has additional raised issues concerning 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 may be now a complete of 266,130 ETH locked on the community, with the expectations of an airdrop taking place 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