Cryptocurrency

Ethereum Scaling Network Blast Goes Live, $2.3B Freed – Crypto News

Published

1 year ago

March 1, 2024

Dripp

The Ethereum layer-2 scaling solution, Blast, has officially launched its mainnet, marking a significant milestone in cryptocurrency. This launch has facilitated the release of over $2.3 billion in crypto assets previously locked up by users seeking to earn rewards through staking and participating in airdrop campaigns. The initiative, spearheaded by the founder of the top NFT marketplace Blur, aims to enhance transaction efficiency and scalability on the Ethereum network. This development comes when the crypto market is experiencing a notable surge, with Ethereum’s price witnessing a 12% increase over the past week.

Blast, introduced to the public in November along with a bridge and rewards campaign, has seen a rapid increase in funds staked as traders rush to transfer their assets to the network. This urgency stems from the anticipation of numerous projects launching on the network, which promise to distribute tokens and rewards to early users.

Additionally, the recent appreciation in Ethereum’s price has contributed to the growth in the value of assets staked on the platform. Despite unlocking funds, many users are opting to keep their assets on Blast to capitalize on the opportunities presented by new applications, protocols, and the promise of ongoing rewards.

Blast Competes with Top Ethereum Scaling Solutions

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 shift may indicate a trend of users withdrawing funds to take advantage of the broader crypto market’s gains, which has been on an upward trajectory since late last year. However, Blast has announced plans to distribute “airdrop points” in May, related to a forthcoming token launch, which could potentially retain user interest and participation on the network.

The launch of Blast positions it as a competitor among other Ethereum scaling solutions like Arbitrum, Optimism, Base, and Polygon. The success of Blur’s incentive model, which propelled it to prominence in the NFT market, is something the founders hope to replicate with Blast in scaling networks. However, the approach taken by Blast, particularly the decision to delay withdrawals from its bridge for months, has sparked debate and criticism within the crypto community.

Blast Founder Responds to Critique on Launch Plan

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 incentive model’s presentation could undermine the project’s credibility. Notably, Dan Robinson, Head of Research and General Partner at Paradigm — the venture capital firm co-led Blast’s $20 million seed funding round — expressed concerns regarding the project’s messaging and execution. Despite these criticisms, Blast founder Tieshun “Pacman” Roquerre acknowledged the feedback from Paradigm but maintained that the final decisions regarding the launch were made independently by the Blast team.