Explosive Debut: Ethereum Layer 2 Draws $30M Post-Bridge Launch

Blast, a burgeoning project in the cryptocurrency space, has garnered attention with its impressive lineup of investors, including renowned names such as Paradigm and contributors from "eGirl Capital." Despite this, users are faced with a waiting period until February before they can access their funds. The project experienced a rapid influx of over $30 million in both ether and stablecoins shortly after its Monday launch, highlighting a robust demand for Layer 2 networks. These networks address critical issues like speed, cost, and scalability on layer 1 blockchains, with Ethereum being a prominent example. The seamless inflow of funds is made possible by the utilization of blockchain-based bridges, facilitating the transfer of tokens across different networks.

One distinguishing aspect of Blast is its innovative design, where depositors not only transfer ether but also begin earning yields and acquiring BLAST points. The platform actively involves users in Ethereum (ETH) staking, with the resulting yield benefiting both Layer 2 users and decentralized applications (dapps). The development team underscores a comprehensive redesign, assuring depositors that their ETH holdings will automatically appreciate over time.

However, users must exercise patience as withdrawals and on-chain activities are slated to commence only after the mainnet launch in February. Currently operating on an invite-only basis, access to Blast necessitates a unique code provided by invited users. Furthermore, the redemption of BLAST points is scheduled to commence in May.

Once you have access, you can bridge to earn yield (4% for ETH + 5% for stablecoins) and Blast Points ahead of the Mainnet launch in February (2024).

Early access members get more points based on how much they bridge and who they invite.

— Blast (@Blast_L2) November 20, 2023

Examining the distributed funds, data reveals that over $19 million in ether is staked on Lido, presenting a potential annualized yield of up to 4%. Another substantial amount of $3 million resides on Maker, while a more modest sum of $150,000 in dai stablecoins remains dormant in the wallet. Users involved in the bridging of stablecoins are rewarded with Blast's auto-rebasing stablecoin, USDB, the yield of which is derived from MakerDAO’s on-chain T-Bill protocol.

Blast's financial success is underscored by its ability to secure over $20 million in a funding round led by Paradigm and Standard Crypto. Guided by the pseudonymous figurehead @PacmanBlur, a co-founder of the NFT marketplace Blur, Blast is positioned as an extension of the Blur ecosystem. This extension enables users to earn yields on idle assets while concurrently advancing the technical foundations necessary for sophisticated NFT products. In the wake of Blast's introduction, the value of BLUR experienced a noteworthy surge, rising by 12% within the past 24 hours.

Two of the biggest opportunities we see for NFTs are reducing transaction costs and institutional-grade NFT perps. Hundreds of millions have been spent on gas trading NFTs, and perp volume is 6x bigger than spot. These opportunities require an L2.

— Pacman | Blur + Blast (@PacmanBlur) November 21, 2023

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