Blast L2 Launch Sees $2.3B Movement, TVL Drops 64% Amid $1.6B Withdrawals

The launch of the Blast layer-2 network on Ethereum has sparked significant activity and controversy. Initially, over $2 billion was bridged to a new Blast address known as 'ETH Yield Manager' in a pre-launch deposit contract. The network's launch unlocked $2.3 billion in crypto, with $400 million withdrawn by users, offering up to 5% APY on ETH and stablecoins. However, the total value locked (TVL) in Blast plummeted by approximately 64% post-launch, with early data revealing that around $1.6 billion worth of assets were withdrawn from the original deposit contract within a day of its launch. Despite these withdrawals, some argue that this movement of capital to the Blast mainnet is a bullish sign, not a withdrawal, with the remaining assets in the original deposit contract now native to the Blast mainnet. A scam named 'RiskOnBlast' is blamed for a loss of $1.3 million in ETH, contributing to the rapid decrease in TVL to $650 million. Yet, some reports suggest that between the mainnet bridge and the Blast deposit farm, inflows are net positive, currently sitting at approximately $2.35 billion, indicating a net increase from the initial figures.