Blast is the newest Layer 2 community to burst into the scene within the final week and has taken the decentralized finance (DeFi) world by storm already. This community which seemingly got here out of nowhere has backing from Paradigm, and as its reputation has risen, it has surpassed Base and Cardano’s Whole Worth Locked (TVL) in lower than per week after launch.

Blast TVL Crosses $565 Million

The Blast community was formally introduced on November 21 and it rapidly garnered assist from crypto traders. Within the first day, the community noticed over $81 million in crypto locked. And in two days, the determine had rapidly grown above $123 million.

Regardless of among the FUD (Concern, Uncertainty, and Doubt) that has adopted the launch of the community, traders have continued to bridge their assorted into it. By Sunday, November 26, the full worth locked on the Blast community had formally crossed $544 million, in keeping with information from DeFi tracker DeFiLlama.

Supply: DeFiLlama

This determine places the community’s TVL forward of older opponents akin to Coinbase’s Base. Whereas Blast’s TVL sits at $544 million, the Base TVL is at $338.26 million. Because of this Blast’s TVL is presently 60% larger than that of Base.

In the identical vein, the Blast TVL can also be means forward of that of Cardano. Presently, the Cardano TVL sits at round $330.07 million, just a bit decrease than Base, and round 61% decrease than that of Blast.

New L2 Attracts Criticism From DeFi Buyers

Amid the speedy development that Blast has loved, it has additionally drawn criticism from DeFi traders. The considerations have ranged from safety to how the community is being run. One of the crucial pertinent criticisms has stemmed from the truth that the entire crypto being bridged to the community will likely be locked till subsequent yr.

The community revealed that traders will be unable to entry their locked funds till February 2024. As well as, Blast guarantees customers yield on their Ethereum (ETH) and stablecoins being bridged to the community, however with no readily discernible means of how this yield will likely be earned.

Some members of the crypto group have, nonetheless, found out that the funds had been being deposited into the Lido DAO protocol. Apparently, Blast is presently incomes round $1.5 million a month by depositing the bridged funds into Lido. This has additional raised considerations in regards to the rising dominance of Lido, which is headed towards 33.3% and will pose a danger for the Ethereum community.

However, Blast continues to dominate conversations round DeFi on social media. There may be now a complete of 266,130 ETH locked on the community, with the expectations of an airdrop taking place in 2024.

Whole DeFi market cap at $57.26 billion | Supply: Crypto Whole DeFi Market Cap on Tradingview.com