BLAST GOES FROM $2 BILLION TVL TO SHUTTING DOWN
$BLAST was once one of the hottest L2s last season, with over $2 billion in assets deposited in its ecosystem at one point. Now it’s announced it’s shutting down because it isn’t making enough money to cover operating costs.
Blast used to attract users with a pretty appealing model: deposit ETH or stablecoins, and your assets could earn yield automatically. Add in airdrops, points, and the like, and a ton of money poured in.
But the problem is, lots of deposits don’t necessarily mean lots of people are actually using the platform.
A blockchain that wants to last is a lot like a company. It needs great apps → users → transactions → revenue. Blast managed to bring in capital, but didn’t build enough to make users stick around and keep using it long term.
As a result, its TVL has fallen from over $2 billion to just around $32 million. Revenue wasn’t enough to cover costs, so it’s shutting down.
This is something you should keep in mind if you hold altcoins. A compelling story, big funds, and lots of capital raised don’t guarantee a project will last. It needs real users and a way to make money—that’s what gives it greater long-term potential.
$BLAST was once one of the hottest L2s last season, with over $2 billion in assets deposited in its ecosystem at one point. Now it’s announced it’s shutting down because it isn’t making enough money to cover operating costs.
Blast used to attract users with a pretty appealing model: deposit ETH or stablecoins, and your assets could earn yield automatically. Add in airdrops, points, and the like, and a ton of money poured in.
But the problem is, lots of deposits don’t necessarily mean lots of people are actually using the platform.
A blockchain that wants to last is a lot like a company. It needs great apps → users → transactions → revenue. Blast managed to bring in capital, but didn’t build enough to make users stick around and keep using it long term.
As a result, its TVL has fallen from over $2 billion to just around $32 million. Revenue wasn’t enough to cover costs, so it’s shutting down.
This is something you should keep in mind if you hold altcoins. A compelling story, big funds, and lots of capital raised don’t guarantee a project will last. It needs real users and a way to make money—that’s what gives it greater long-term potential.