Blast Network, an Ethereum layer-2 scaling solution, is experiencing significant setbacks, with major declines in both its total value locked (TVL) and daily active users, raising doubts about its long-term viability.
Recently, Blast’s TVL has plummeted by an alarming 62% from its peak, following a substantial $300 million liquidity loss reported in early August.
The network’s woes are further underscored by a sharp drop in daily active users, which had fallen to 27,800 as of August 18—the lowest since Blast began its expansion in late February.
This is in stark contrast to competitors like Base and Arbitrum, which boast 740,000 and 360,000 daily active wallets, respectively.
This user decline follows a problematic airdrop in June and growing dissatisfaction among users and developers.
Prominent projects such as Pacmoon, the largest meme coin on Blast’s network, are now seeking alternatives. Pacmoon’s Lamboland criticized Blast for its lack of community and cultural engagement, stating,
“Blast failed to address these crucial aspects and built a system that focused on token creation without providing necessary social support.”
Furthermore, the network has faced criticism over its launch approach, notably the bridge feature, which left users unable to withdraw their funds for a prolonged period.
