Few projects have generated as much criticism and controversy as Blast this cycle.
Shortly after going live, complaints from depositors began appearing on Twitter regarding the opportunity cost of locking up their ETH for the airdrop. The effects of this could be seen immediately after launch, with TVL dropping significantly before recovering. Then the Munchables NFT Project Hack arrived less than a month after it went live, plunging the network into an existential crisis following the $64 million hack (although the funds were later returned). Still, Blast pressed on, attracting a handful of quality projects to promote the network as an exciting and experimental DeFi hub for crypto-natives.
As the month of May approaches, the fateful month when Blast will perform its airdropIt's important to check in with the ecosystem to see if the network has built a strong enough hub that will continue to grow after the airdrop or if it will take a backseat.
The state of explosion
Impressively resilient, analysis of the current state of the network shows that Blast has demonstrated notable recovery and expansion.
Although it didn't grow exponentially, its TVL increased from an initial point of $2.11 billion to $3 billion twice before and after the Munchables hack. It is stabilizing at around $2.5 billion amid the recent market sell-off, although a ~59% increase over the past month places it comfortably among the top ten channels by size and in the top five for rollups.
TVL's analysis, however, may not provide the best insight into actual activity, as much as transactions per second (TPS), which reached 9.4 after launch but has now moderated to 5 GST. This puts Blast well behind channels like Basis, Degen chain and arbitrage. However, this could be because most activity on Blast comes from locking assets to maximize yield rather than executing frequent trades.
While the activity numbers may be low in comparison, many projects in Blast's ecosystem have seen significant growth in the past month. Pursuing its goal of being a degen DeFi hub, Blast has established a solid foundation equipped with all the verticals it needs to achieve this.
Juice financing provides lending/borrowing facilities, packed with features to maximize yield and point farming. Thruster provides the ecosystem with significant token liquidity needed for swaps, complemented by high yield projects like Hyperlock Financing build on it. Particle trading growth shows demand for their “Uniswap for leverage” and Renzoone of the largest LRT protocols, supplies the network with renewal liquidity.
Together, these projects laid the foundation for Blast as it strives to become a robust DeFi hub.
Potential catalysts
By catering to crypto-native individuals and adopting a degenerative philosophy, the Blast ecosystem has established a culture and population already well versed in the intricacies of cryptography and predisposed to exploring new forms of it.
New projects can leverage this community to guide the design of their protocols. This works particularly well for SocialFi projects, those looking to build at the intersection of social media and DeFi, several of which have recently sprung up on Blast.
- Fantasy Topwhere users “recruit” teams of their favorite crypto personalities to compete in tournaments based on leaderboards such as Twitter engagement, is on the brink of its mainnet after launching its airdrop claim.
- First fansa SocialFi platform that further monetizes the relationship between content creators and their audience with speculative potential, has just launched its beta version ahead of an upcoming release.
- DistrictOne monetizes group chats with gambling games including stealing, sharing, investing and jackpots, catering to communities and influencers looking to expand and capitalize on their reach.
Overall, Blast's intentional alignment with crypto-native and degenerate cultures not only solidifies its position in the DeFi space, but also paves the way for expansion into develop trends like SocialFipotentially capturing greater market traction by further blending DeFi and culture.
Go forward
The month of May is of particular importance for Blast with the arrival of its airdrop.
The network's activities, particularly in DeFi, have partly revolved around its anticipation. Remember that there are not only points, but also gold: a resource including 50% of the dropallocated to Dapps to incentivize and reward their communities as they see fit.
As Blast approaches its crucial May drop event, the network finds itself at an important crossroads. With a resilient foundation, as evidenced by its post-Munchables recovery hack and stable TVL, Blast has a chance to become a DeFi hub in its own right. Still, given the importance of the network's activity around agriculture, the success of its airdrop will be critical in determining whether Blast cements its status as a pioneering network or whether it retreats to become just another L2.