Blast, Ethereum's Newest Layer 2, Draws $30 Million Within Hours of Launch

21. Nov 2023 Posted by Guest on News

Investors swiftly funneled more than $30 million in ether and stablecoins into Blast, the recently launched Ethereum layer 2 network, within hours of its debut on Monday. This surge underscores a robust demand for layer 2 solutions, which operate atop layer 1 blockchains like Ethereum to alleviate issues related to speed, cost, and scalability. Bridges, blockchain-based tools facilitating token transfers between networks, played a pivotal role in this inflow.

Blast's allure is further fueled by its distinctive approach: depositors not only facilitate ether transfers but also begin earning yields on the transacted ether, coupled with BLAST points. Notably, Blast seamlessly integrates with Ethereum staking, ensuring that staking yields directly benefit users and decentralized applications (dapps) on its layer 2 network. The team emphasized this redesign, stating that holding 1 ETH on Blast automatically sees it grow to 1.04, 1.08, 1.12 ETH over time.

However, users must wait until the mainnet's launch in February before accessing funds or participating in on-chain activities. Currently, Blast operates on an invite-only basis, with users requiring a code for access. Additionally, the redemption of BLAST points is scheduled to commence in May.

Of the total bridged funds, data indicates that over $19 million in ether has been staked on Lido, promising an annualized yield of up to 4%. Another $3 million resides on Maker, while a smaller sum of $150,000 in dai (DAI) stablecoins lies dormant in the wallet.

Users engaging in stablecoin bridging receive Blast's auto-rebasing stablecoin, USDB. The yield for USDB is sourced from MakerDAO's on-chain T-Bill protocol.

Blast secured over $20 million in funding led by Paradigm and Standard Crypto. Headed by the pseudonymous figure @PacmanBlur, a co-founder of the NFT marketplace Blur, Blast is positioned as an extension of the Blur ecosystem. PacmanBlur highlighted Blast's role in enabling Blur users to earn yields on idle assets while enhancing the technical infrastructure necessary for sophisticated NFT offerings.

Following the Blast launch, BLUR prices surged by 12% in the past 24 hours.