Blast Launches Ethereum L2 Mainnet, Unlocking Staked Crypto Worth $2.3 Billion

Blast's Ethereum layer-2 network mainnet allows users to withdraw approximately $400 million worth of Ether (ETH)

Blast's Ethereum layer-2 network mainnet launch on February 29 at 9:00 pm UTC was a highly anticipated event in the crypto community. The launch not only allowed users to withdraw approximately $400 million in Ether (ETH) but also marked the unlocking of nearly $2.3 billion in staked crypto that was previously locked up on the network. This significant unlocking of staked assets has brought renewed attention to Blast and its capabilities within the Ethereum ecosystem.

Optimistic Rollup offers up to a 5% annual yield on Ether and stablecoins

The Optimistic Rollup blockchain scaler presents an enticing opportunity for users, offering them up to a 5% annual percentage yield on both Ether and stablecoins held within the network. This yield is generated from staked ETH and United States Treasury Bills (T-Bills), which are managed by the blockchain protocol and Dai. This innovative approach not only incentivizes users to participate in the network but also provides them with a reliable source of passive income, further enhancing the appeal of Blast's ecosystem.

Before the mainnet launch, all cryptocurrencies were locked, preventing users from accessing or withdrawing funds

Before the mainnet launch, any crypto sent to the network was securely locked in, establishing a protocol that prevented its 180,000 users from accessing or withdrawing their funds. This precautionary measure aimed to ensure the integrity and stability of the network during its initial stages, albeit temporarily limiting user access to their assets.

Blast's total value locked (TVL) reached $2.27 billion, before later falling to $1.87 billion

Blast's total value locked (TVL) reached an impressive $2.27 billion on February 29, reflecting significant initial investor interest and confidence in the platform. However, since then, there has been a notable decrease, with the TVL dropping to $1.87 billion. This decrease coincides with just under $400 million being withdrawn from the network after its launch. Despite this decline, Blast continues to attract attention within the crypto community, with ongoing developments and initiatives aimed at maintaining and growing its user base and value proposition.

The launch of Blast has sparked controversy

Blast's launch has sparked controversy. Paradigm's research head, Dan Robinson, criticized the decision to launch the bridge before the L2 and not allow withdrawals for three months, stating it sets a bad precedent for other projects.