According to CoinDesk, investors have bridged over $30 million in ether and stablecoins to Blast, the latest Ethereum layer 2 network, just hours after the project went live late on Monday. The inflow demonstrates strong demand for Layer 2 networks or protocols that operate on top of a layer 1 blockchain, such as Ethereum, to reduce bottlenecks related to speed, cost, and scalability. Bridges are blockchain-based tools that enable users to transfer tokens between different networks.
Blast's unique design is also driving interest, as depositors start earning yields on the transferred ether alongside BLAST points. The team stated in a post on Tuesday that Blast natively participates in ETH staking, and the staking yield is passed back to the L2's users and dapps. Users must wait until the mainnet launch in February before they can withdraw any funds from the network or participate in on-chain activities. As of Tuesday, Blast is invite-only, requiring a code from invited users to gain access. Additionally, the BLAST points can be redeemed starting in May.
Data shows that of the total funds bridged, over $19 million in ether has been staked on Lido, where it is set to earn as much as 4% annualized yield. Another $3 million is on Maker, while a smaller tranche of $150,000 in dai (DAI) stablecoins sits idle in the wallet. Users who bridge stablecoins receive Blast's auto-rebasing stablecoin, USDB. The yield for USDB comes from MakerDAO's on-chain T-Bill protocol. Blast raised over $20 million in a round led by Paradigm and Standard Crypto and is headed by pseudonymous figurehead @PacmanBlur, one of the co-founders of NFT marketplace Blur. @PacmanBlur said in a separate post that Blast was an extension of the Blur ecosystem, allowing Blur users to earn yields on idle assets while improving the technical aspects required to offer sophisticated NFT products to users. BLUR prices rose 12% in the past 24 hours following the release of Blast.
