Blast L2 Network TVL Plummets by Almost 97%
Date: 2025-08-20 Author: Henry Casey Categories: BUSINESS
The Blast protocol, launched in November 2023 by the founder of Blur under the pseudonym Pacman, has attracted significant attention in a short time. Initially, the project did not even have a test network, but offered users to deposit coins with a yield of 4-5%. Currently, the platform promises an APR of up to 50%. The protocol's TVL peaked in July 2024, reaching $2.2 billion, but after the airdrop of its own BLAST token, the volume dropped sharply to $67 million - a drop of almost 97%.
The BLAST coin has also shown negative dynamics since its launch. If at the start it cost about $0.025, now the price has dropped to $0.0025, which is a decrease of 90%. This trend reflects a general decline in user interest in the protocol.
Blast's official X (former Twitter) accounts have not been updated since May 2025. The last message concerned a partnership with the Safe platform. The Pacman founder's page has also been silent for three months. At the same time, the Blur NFT marketplace continues to demonstrate activity: over the past 30 days, the trading volume has amounted to more than $150 million, although the platform's official account has not published posts since March.
Earlier in June 2025, another L2 network, zkLend based on Starknet, announced its closure. The reasons were a hacker attack and the delisting of the LEND token from major exchanges. This event became an additional reminder of the high risks in the L2 protocol segment.
The situation with Blast shows how quickly market sentiment can change, especially for new projects with high returns and limited transparency. Despite the loud starts and promises of high profits, the real dynamics of TVL and the token price may differ dramatically from investors' expectations.
Analysts note that for long-term success, L2 platforms need to not only offer an attractive APR, but also support an active community, transparent operating mechanisms, and regular product updates. Without this, even promising startups face a sharp outflow of users and a drop in token prices.
The 97% drop in Blast's TVL and 90% drop in BLAST's price clearly demonstrate the risks of investing in new cryptocurrency protocols and emphasize the importance of careful analysis before investing.
