TL;DR
After farming the recent Airdrop on Blast Network, we have almost all the information needed to determine if Blast Network is a Moonshot. Since February, Blast has been a focus point for Yield farmers and Airdrop hunters alike. Offering some of the best stablecoin yields of the year. Blast gave us an easy-to-use dashboard for tracking all our Network activity. Allowing for a clear path to gathering equity on the Network. But, in the end. Only the top 1,000 users received adequate rewards. Could this signal the end for Blast? Or is it really the networks blasting off point?
Looking at the data currently available for the network. Around 90% of all Blast users have been able to claim their tokens. A big part of this metric was that anyone who qualified could claim their allocation at no cost to them. Unlike the recent LayerZero airdrop, where users had to pay for the honor of claiming their reward, on top of gas fees at the time of claim.
While this may have put Blast Network on a slightly different level than other similar drops, this is the only part of Blast that’s deviated from the standard outline. With all other aspects following the VC playbook. Including the massive loss of TVL happening currently on the network and real users receiving less than $2 worth of tokens.
Can Blast recover from isolating more than 300,000 users, or will this forced HODL benefit its environment?
What is Blast Network?
Founded by the creators of the Blur NFT marketplace. Initial feelings for Blast upon release were mixed. Many felt jaded by the misuse of funds and improper use of Sybil detection during the Blur Airdrop. Leading to its instant downfall. Seriously, when was the last time you heard anyone talk about using Blur? A long time ago, that’s when. Far better options like Magic Eden and Tensor are here now. Making it the right line of thinking and a valid concern that Blast Network would follow a similar path.
But, as more information became available the potential for an Airdrop was presented. Blast Network began positioning itself as the next big Ethereum Layer2. Locking in $2.3 Billion worth of assets in just a few months across a handful of DeFi protocols.
Blast was considered an immediate success in the media because of this. But this alone isn’t enough to solidify the project as a winner. In fact the majority of this TVL was locked into just half a dozen projects. Due to their individual Airdrop potential. Stablecoins are the main pull for many users. Blast offered over 20% APY for those who noticed this opportunity through its BUSD stablecoin. ETH restaking on the network, Blasts original reason for launching. Was able to outyield other restaking platforms like Eigenlayer.
However, with the launch of BLAST token this week. The project is seeing more than the usual rate of users exiting. Dropping from that $2.3B TVL to just $1.5B at the time of writing. While some drop in value can be expected with every Airdrop Network. This is unusually high and the first sign of trouble for Blast.
What caused this you might ask? Well, it’s pretty simple to figure out. With more than 300,000 users participating in the Blast TGE. If we removed just the top 2,000 wallets that hold more than 90% of the current market cap. We have a remaining value of less than $42M divided among the 310,000 remaining wallets…
Head of Research Jesse is a passionate seeker of truth who enjoys educating others about Bitcoin. As a free thinker and 2nd amendment advocate, Jesse believes each individual has the right to monetary freedom. “The swarm is headed towards us” -Satoshi Nakamoto
