Blast, a layer-2 blockchain set to launch in March, has attracted over $225 million in staked ether [stETH] and stablecoins since Monday, despite facing skepticism from some in the crypto community.
Touted as the inaugural layer-2 network with native staking, Blast aims to generate yield through ether [ETH] staking and real-world assets (RWAs). Layer 2s are built atop layer-1 blockchains like Ethereum, aiming to expedite and reduce transaction costs.
The protocol is led by the pseudonymous @PacmanBlur, a co-founder of the popular NFT marketplace Blur. Part of its appeal lies in backing from notable entities such as crypto fund Paradigm and “eGirl Capital,” a group of crypto-native investors.
A key condition is that staked assets cannot be withdrawn until the Blast bridge goes live in February. Meanwhile, users receive “Blast points,” redeemable in a scheduled May airdrop. Users can earn more points by referring others through unique links, and access is currently invite-only, requiring a code from an existing user.
Most of the $225 million staked in Blast is on the liquid-staking protocol Lido, making Blast the seventh-largest holder of staked ether, per Etherscan.
Critics in the crypto community have voiced concerns about restaking on Lido for relatively unknown Blast points. Some liken Blast points to a pyramid scheme, with early users gaining more points based on the number of users they bring in.
The debate also questions the need for more layer-2 networks in the crowded decentralized finance (DeFi) space, with Ethereum leading with 55% of total value locked, followed by Tron (17%) and BSC (6%).
Despite the Blast blockchain being four months away from going live, investors continue to pour capital into the platform. The uncertainty surrounding Blast points has not dampened enthusiasm, with some viewing it as a unique opportunity. Notably, Blast’s $225 million total value locked is approaching that of Coinbase’s Base, which has $284 million.
Mechanism Capital co-founder Andrew Kang expressed confidence in Blast, labeling it his “first new L2 investment since Arbitrum.” Meanwhile, the closely related Blur (BLUR) token has surged 18% in the past 24 hours and nearly 40% for the week, as some investors consider it a strategic play ahead of Blast’s launch.
Blur founder @PacmanBlur emphasized that Blast is an extension of the Blur ecosystem, allowing users to earn yields on idle assets while enhancing technical capabilities for sophisticated NFT products.