Blast, rapid rise in TVL ranking within the L2 ecosystem... Is it sustainable?

The Layer 2 network Blast, led by Blur founder Pacman, has quickly risen to the third position in the L2 TVL rankings just days after its launch, drawing significant industry attention. Behind this rapid growth are a native revenue model and strong incentive strategies, but questions are also being raised about how long this momentum can be sustained.

Short-Term Rise to Third in TVL Rankings: What Makes Blast Special?

When Blast announced the official launch of its testnet on January 17, industry observers were already paying close attention. Building on Blur’s success, Blast presented a differentiated value proposition.

Blast is the only Layer 2 solution within the Ethereum ecosystem that offers native revenue to users. This approach fundamentally differs from existing L2s. According to DefiLlama data, Blast reached $100 million in TVL just two days after launch, and within 34 days surpassed $1 billion, currently growing to $1.33 billion. Based on L2BEAT rankings, Blast is in third place after Arbitrum ($2.6 billion) and OP Mainnet, surpassing projects like zkSync and Starknet.

This rapid ascent in TVL is backed by the strong background of the Blast development team. Key members, including Tieshun Roquerre, come from MakerDAO, MIT, Yale University, and Seoul National University, ensuring technical expertise and credibility. Additionally, on January 17, Pyth Network was selected as Blast’s preferred oracle partner, accelerating ecosystem collaboration. With the deployment of Pyth Entropy and Price Feeds, over 400 real-time price feeds are now available.

Native Revenue and Large Capital Inflows: Growth Drivers of the Blast Ecosystem

The core factor driving Blast’s TVL increase is its revenue generation mechanism. Users can earn an annualized 4% yield on Ethereum staked in Blast, and 5% on stablecoins. Compared to other Layer 2 networks that offer 0% base yields, this is a significant advantage. These yields, automatically distributed through decentralized protocols, provide tangible incentives for users.

This attractive proposition has also attracted large capital. As of January 1, a single ETH whale deposited 6,293 ETH (approximately $14.41 million) into Blast, and since December 17, a total of 24,692 ETH (about $56.88 million) has been deposited. This indicates a high level of confidence among major asset holders in Blast’s future prospects.

Leading figures in the Web3 industry are also actively participating. By early January, about $24.4 million had been staked, making it the sixth-largest staking address within the Blast ecosystem. This capital influx reflects more than just numbers—it signals trust in the project.

BIG BANG Incentive Program: A Multi-Layered Ecosystem Building Strategy

The “Blast BIG BANG” event announced on January 17 is not just a marketing campaign but a structured ecosystem development strategy. From the first day of testnet launch, with 24,587 participating addresses, over 100,000 active addresses are now involved.

Key features of this program include: 50% of the airdrop pool is allocated to the winning project of the competition, while the remaining 50% is distributed among interacting users. This structure aims to include both developers and users. The evaluation criteria are clearly divided into eight categories: permanent contract DEX, spot exchanges, lending protocols, NFTs and gaming, SocialFi, GambleFi, infrastructure, and innovative projects utilizing Blast’s native revenue or gas fee sharing mechanisms.

Each category employs a differentiated evaluation method to ensure various project types have equal opportunities. Winning projects will be extensively promoted to the entire user community upon the launch of Blast mainnet.

The Question Behind the Token Airdrop Frenzy: Is Sustainability Possible?

The enthusiastic response to the BIG BANG event exceeded expectations. However, a sober analysis reveals that this phenomenon is fundamentally based on large-scale incentive distribution. The influx of capital and rapid participant growth are directly linked to expectations of token airdrops.

The key questions facing Blast are: Will users and developers remain in the ecosystem after the incentive program ends? Can the current high yields be maintained after mainnet launch? A high TVL ranking alone does not guarantee long-term value.

Arbitrum and OP Mainnet have maintained their TVL rankings over the long term not merely through incentives but through a robust ecosystem and continuous innovation. For Blast to sustain its current momentum, it must translate initial enthusiasm into tangible ecosystem development. This includes the emergence of quality DApps, increased real-world use cases, and the validation of sustainable revenue models.

While Blast’s growth is impressive, the real test begins now. How its TVL and user base evolve over time, and how the project responds to these changes, will determine its future.