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 reputation has risen, it has surpassed Base and Cardano’s Total Value Locked (TVL) in lower than per week after launch.
Blast TVL Crosses $565 Million
The Blast community was formally introduced on November 21 and it rapidly garnered help from crypto buyers. In the primary day, the community noticed over $81 million in crypto locked. And in two days, the determine had rapidly grown above $123 million.
Despite among the FUD (Fear, 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 overall worth locked on the Blast community had formally crossed $544 million, in accordance with information from DeFi tracker DeFiLlama.
Source: DeFiLlama
This determine places the community’s TVL forward of older rivals reminiscent of Coinbase’s Base. While Blast’s TVL sits at $544 million, the Base TVL is at $338.26 million. This implies that Blast’s TVL is at present 60% larger than that of Base.
In the identical vein, the Blast TVL can be means 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 Draws Criticism From DeFi Investors
Amid the speedy development that Blast has loved, it has additionally drawn criticism from DeFi buyers. The issues have ranged from safety to how the community is being run. One of essentially the most pertinent criticisms has stemmed from the truth that the entire crypto being bridged to the community can be locked till subsequent 12 months.
The community revealed that buyers won’t be able to entry their locked funds till February 2024. In addition, Blast guarantees customers yield on their Ethereum (ETH) and stablecoins being bridged to the community, however with no readily discernible means of how this yield can be earned.
Some members of the crypto group have, nonetheless, discovered that the funds had been being deposited into the Lido DAO protocol. Apparently, Blast is at present incomes 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 threat for the Ethereum community.
Nevertheless, Blast continues to dominate conversations round DeFi on social media. There is now a complete of 266,130 ETH locked on the community, with the expectations of an airdrop taking place in 2024.
Total DeFi market cap at $57.26 billion | Source: Crypto Total DeFi Market Cap on Tradingview.com
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