Blast TVL Surpasses Base and Cardano in Less Than a Week
The Blast network, backed by Paradigm, has emerged as a new Layer 2 network in the DeFi space. Since its launch, it has quickly gained popularity and surpassed both Base and Cardano in terms of Total Value Locked (TVL) within a week.
Blast TVL Crosses $565 Million
Within the first two days of its announcement, the Blast network attracted over $123 million in locked crypto assets. As of November 26, the TVL on Blast had officially crossed $544 million, exceeding Coinbase’s Base TVL by 60%.
Moreover, Blast’s TVL is also significantly higher than that of Cardano, which sits at around $330.07 million.
New L2 Draws Criticism From DeFi Investors
Despite its rapid growth, Blast has faced criticism from DeFi investors. Concerns have been raised regarding security and the network’s operation. One major criticism is that all bridged funds will be locked until February 2024, with no clear explanation of how users will earn yield on their assets.
It has been discovered that Blast deposits bridged funds into the Lido DAO protocol, earning approximately $1.5 million per month. This has raised concerns about the dominance of Lido and its potential risks to the Ethereum network.
Blast Dominates DeFi Conversations
Despite the criticism, Blast continues to dominate discussions in the DeFi community on social media. Currently, there are 266,130 ETH locked on the network, with expectations of an airdrop in 2024.
Hot Take: Blast Disrupts DeFi Landscape with Rapid TVL Growth
Blast has quickly emerged as a major player in the DeFi space, surpassing established competitors like Base and Cardano in terms of TVL. While its rapid growth has drawn criticism, Blast’s dominance in social media conversations highlights its impact on the industry. However, concerns remain regarding the network’s security and operation, particularly with regards to locked funds and reliance on the Lido DAO protocol. As Blast continues to gain traction, it will be interesting to see how it shapes the future of DeFi.
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