Blast TVL Surges to $2.7 Billion – Emerges as Top Three L2 Following Mainnet Launch

Key Takeaways

• In the days since its mainnet launch, the total value locked (TVL) on Blast has climbed to over $2.7 billion.
• After Arbitrum One and Optimism, Blast now has the third-highest TVL of any Ethereum Layer 2.

Since its mainnet launch on February 29, the Ethereum Layer 2 Blast has risen close to the top of the L2 leaderboard, with $2.7 billion of assets now locked on the platform

Behind Arbitrum One and Optimism, Blast has the third highest total value locked (TVL) of any Layer 2, data  from L2 Beat shows.

Blast Demonstrates Demand for Staking Solutions

Designed to maximize Ethereum staking yields, Blast was originally conceived by the Blur founder Pacman, who observed that Blur users were losing money to ETH depreciation because assets placed in the platform’s bidding pool couldn’t be staked.

To solve the problem, it lets users deposit ETH and stablecoins in exchange for liquid L2 tokens that automatically generate a yield.

Blast smart contracts automatically stake ETH deposits via Lido liquid staking pools.  Meanwhile, stablecoin yields are generated from MakerDAO’s on-chain T-Bill protocol. 

Within three days of enabling deposits in November, the platform had attracted stablecoins and ETH worth over $400M. 

Following the mainnet launch last week, the platform experienced some growing pains, with bugs affecting the user interface. It has even witnessed its first rug pull, a dubious but perhaps unavoidable rite of passage for any new Layer 2.

Nevertheless, the Blast’s TVL has continued to swell, reaching $2.7 billion by March 7.

DApps Embrace New L2

Although Blast was first conceived as a solution for Blur users, other applications are also set to benefit from the new L2.

https://twitter.com/Blast_Pulse/status/1765650636509442264

Apps built on Blast cover the full diversity of Web3, spanning Decentralized Exchanges (DExs), Lending, GameFi and NFTs. The most popular of these, Ring Protocol, has already amassed a TVL of nearly $125 million.

About the Author

James Morales

Although his background is in crypto and FinTech news, these days, James likes to roam across CCN’s editorial breadth, focusing mostly on digital technology. Having always been fascinated by the latest innovations, he uses his platform as a journalist to explore how new technologies work, why they matter and how they might shape our future.

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