‘Blast’ Blasts Open: $2.3 Billion Unlocked as Ethereum Scaler Goes Live

Blast, the Ethereum layer-2 scaling network from the founder of Blur, a leading NFT marketplace, finally launched its mainnet on Thursday. This long-awaited event unlocked billions of dollars in crypto funds that users had previously deposited on the network in anticipation of staking rewards and an upcoming token airdrop.

Just before the launch, Blast’s website reported over $2.3 billion staked on the bridge connecting the Ethereum mainnet to the new network. This figure had been steadily rising in the past few days, partly due to traders eager to participate in the growing number of projects launching on Blast. These projects offer airdrops and other rewards to early users.

The recent rise in Ethereum’s price (up 12% in the last week, mirroring a broader market surge) also contributed to the increasing value of staked assets on Blast. While some users might choose to keep their funds on the network to leverage new applications and protocols, others are opting to withdraw their funds and partake in the wider crypto market’s recent gains.

Blast’s launch comes with the promise of “airdrop points” in May, which will determine a future token airdrop related to the scaling network. This model directly puts Blast against other established Ethereum layer-2 solutions like Arbitrum, Optimism, Base, and Polygon. Similar to how the incentivized approach pushed forward Blur to the forefront of the NFT landscape, Blast’s founder, Tieshun “Pacman” Roquerre, and his team undoubtedly hope to replicate this success in the layer-2 scaling space.

However, Blast’s journey hasn’t been smooth sailing. The initial launch attracted criticism from crypto enthusiasts and builders alike. Concerns focused on the lack of initial withdrawal functionality and the framing of the incentivized model. In November, Dan Robinson, a partner at Paradigm, a venture capital firm that co-led Blast’s $20 million seed round, publicly stated that the firm found the “announcement this week crossed lines in both messaging and execution.”

He expressed specific concerns about the locked funds and the “marketing approach, which cheapens the work of a serious team.” Blast’s founder acknowledged Paradigm’s request for revisions to the launch plan but ultimately defended the team’s decision to proceed as per their initial plan of action. 

The launch of Blast marks a significant development in the Ethereum scaling landscape, offering users an alternative solution with unique incentive mechanisms. As the network matures and welcomes new applications, it will be interesting to see how Blast navigates the competitive environment and addresses the initial concerns raised by the community.