Blast, the layer-2 scaling solution for Ethereum, has successfully launched its mainnet, marking a significant achievement in the world of cryptocurrency. This launch has unlocked over $2.3 billion in crypto assets that were previously locked up by users participating in staking and airdrop campaigns. Spearheaded by the founder of the top NFT marketplace Blur, Blast aims to improve transaction efficiency and scalability on the Ethereum network. This development comes at a time of a notable surge in the crypto market, with Ethereum’s price seeing a 12% increase in the past week.
The introduction of Blast to the public in November, along with a bridge and rewards campaign, has resulted in a rapid increase in staked funds. Traders are rushing to transfer their assets to the network in anticipation of numerous projects launching on it, promising token and reward distributions to early users.
The recent rise in Ethereum’s price has also contributed to the growth in the value of assets staked on the platform. Despite the unlocking of funds, many users are choosing to keep their assets on Blast to take advantage of opportunities presented by new applications, protocols, and ongoing rewards.
As Blast’s network went live, the total value of funds on the platform decreased, dipping below $1.9 billion, according to Arkham Intelligence, a firm specializing in on-chain data analytics. This decrease may indicate a trend of users withdrawing funds to capitalize on the broader crypto market’s gains, which has been on an upward trajectory since late last year. However, Blast plans to distribute “airdrop points” in May, related to an upcoming token launch, which could potentially retain user interest and participation on the network.
The launch of Blast puts it in competition with other Ethereum scaling solutions such as Arbitrum, Optimism, Base, and Polygon. The success of Blur’s incentive model, which propelled it to prominence in the NFT market, is something that the founders hope to replicate with Blast in scaling networks. However, Blast’s approach, particularly the decision to delay withdrawals from its bridge for months, has sparked debate and criticism within the crypto community.
The strategy employed by Blast, involving the temporary immobilization of user funds, has been a point of contention. Critics argue that this approach and the presentation of the incentive model could undermine the project’s credibility. Dan Robinson, Head of Research and General Partner at Paradigm, the venture capital firm that co-led Blast’s $20 million seed funding round, has expressed concerns regarding the project’s messaging and execution. Despite these criticisms, Blast founder Tieshun “Pacman” Roquerre has acknowledged the feedback from Paradigm but maintains that the final decisions regarding the launch were made independently by the Blast team.
In other news, according to recent data, Bitcoin miners’ reserves have remained stable, despite $40 billion worth of transfers on exchanges. This indicates a strong holding sentiment among miners, despite market fluctuations.
