Blast Network, a layer-2 scaling network for Ethereum, has seen its total locked value (TVL) drop by a significant 62% from its all-time high. Additionally, the number of daily active users on the network has fallen to its lowest level in six months.
These concerning metrics come after Blast experienced a massive loss of users following its airdrop in June, highlighting challenges in maintaining growth and recovery. The network suffered a liquidity loss of over $300 million in early August, pushing its TVL down from $1.1 billion to $785 million, marking the lowest point in six months. Data from Defi Llama indicates that Blast’s daily active users dropped to 27,800 on August 18, a nadir not seen since the launch of its expansion plan in late February. This stands in stark contrast to the user activity on competing networks like Base and Arbitrum, boasting over 740,000 and 360,000 daily active wallets, respectively.
Blast’s strategy has not only left airdrop participants disappointed, but also frustrated some teams building projects on the network. Lamboland, once the leading meme coin on the second-layer network, is migrating to Solana. Lamboland expressed their dissatisfaction on the X platform, criticizing Blast for neglecting tokens, community, and culture and creating a system that suppressed the native token on the network.
