Blast, the eagerly anticipated Layer 2 blockchain developed by the minds behind the non-fungible token (NFT) platform Blur, has recently achieved a significant milestone, surpassing $1.1 billion in deposits. This accomplishment comes even before the platform’s scheduled launch in February. Speculators seem undeterred by the controversial one-way bridge to Blast, as evidenced by the $1 billion worth of staked ether (stETH) and $103 million worth of the DAI stablecoin deposited since the website went live last month, according to DefiLlama.
Blast records significant deposit milestone
In this novel approach, depositors are not only offered a yield of around 5% on their staked assets but are also rewarded with “Blast Points.” These points carry the promise of an airdrop scheduled for distribution in May. Furthermore, users have the opportunity to accumulate additional points by referring others to the platform. This strategy echoes Blur’s success in running a similar airdrop after establishing an NFT marketplace in February. The BLUR token associated with Blur has flourished, boasting a market cap of $500 million and experiencing a 23% surge in value over the past month.
Despite these successes, Blast’s marketing strategy has not been without controversy. Critics within the crypto industry, including backers such as venture capitalist firm Paradigm, have voiced concerns. Paradigm’s Head of Research and General Partner, Dan Robinson, expressed dissatisfaction with Blast’s marketing campaign, suggesting that it “crossed lines.” Robinson clarified that Paradigm does not endorse the practice of accepting deposits before the blockchain or withdrawals are live. Despite this critique, Robinson conveyed enthusiasm about certain components of Blur.
Controversies surrounding the platform’s market strategy
A key point of contention revolves around the perceived risks associated with allowing deposits on a platform that is not yet operational. Some critics have drawn parallels to a pyramid scheme, positing that early depositors and affiliate marketers may disproportionately benefit from the eventual airdrop. It is crucial to contextualize these developments within the broader crypto market, where prices have surged significantly throughout the year. Bitcoin (BTC) has witnessed a remarkable 150% increase, reaching approximately $43,000, while ether (ETH) has doubled in value, hitting $2,400.
This overall market optimism has contributed to the rapid rise of projects like Blast. Blast’s achievement of amassing over $1.1 billion in deposits underscores the excitement within the crypto community. As the platform prepares for its scheduled launch in February, observers are keen to see how these dynamics will shape its future. The controversies surrounding its marketing approach raise questions about its long-term success and resilience in the ever-evolving crypto landscape. The intersection of innovation, speculation, and skepticism continues to define the narrative for projects like Blast as they navigate the complexities of the blockchain ecosystem.