Blast Layer Two Network ‘L2’ Attracts $400 Million in Liquidity
The recently launched Blast Layer 2 blockchain network from the Blur non-fungible token marketplace is quickly gaining popularity among crypto investors and NFT collectors. Within just one week of its launch, the network has received over $400 million in liquidity. Data from Dune Analytics reveals that in the past four days alone, $402 million has been bridged to the new Ethereum Layer 2 network. This liquidity comes in the form of various cryptocurrencies, including DAI, USDC, USDT, stETH, and ETH.
The Launch of Blast L2 Network
Blur, a prominent marketplace for non-fungible tokens, is behind the development of the Blast Ethereum Layer 2 blockchain network. The network was launched earlier this week by Tieshun Roquerre, the founder of Blur, after successfully raising $20 million in a seed funding round. Leading crypto venture capital firm Paradigm led the funding initiative, with participation from other notable investors like Standard Crypto. The primary goals of Blast L2 network are to address high transaction costs for digital assets, introduce new trading instruments such as NFT perps (perpetuals), and provide significant yield generation opportunities.
Understanding Blast’s Unique Features
To better understand Blast’s functionality, it’s important to define what an Ethereum Layer 2 network is. Ethereum is a layer-1 blockchain platform that enables developers to create decentralized applications (dapps) and smart contracts. Layer 2 blockchains are built on top of Ethereum to assist with scalability by handling some transaction load from the base-layer blockchain. By doing so, Layer 2 networks help reduce congestion and lower gas fees for users by combining multiple transactions into a single one.
There are currently more than 20 Layer 2 networks built on Ethereum, including Optimism, Arbitrum, Starknet, Celer network, Immutable X, Metis, and Blast. However, Blast stands out from the others in several ways. One notable advantage is that whitelisted users can earn yields of 5% on stablecoins and 4% on ETH, which is higher compared to other networks that typically offer 0%. Additionally, Blast plans to launch “Blast Points” and rewards for friend referrals after the network’s mainnet launch in February 2024.
Hot Take: Blast L2 Network Revolutionizes Ethereum Scalability
The rapid adoption and liquidity inflow into the Blast Layer 2 blockchain network demonstrate the demand for improved scalability solutions in the Ethereum ecosystem. By leveraging Layer 2 technology, Blast aims to reduce transaction costs and provide enhanced trading capabilities for NFTs. With its unique features like higher yields for whitelisted users and upcoming reward programs, Blast has positioned itself as a promising player in the Layer 2 space. As more users flock to this network, it has the potential to revolutionize how digital assets are traded on Ethereum.
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