TVL's(Total Value Locked) dramatic decrease, active users plummet to their lowest point in half a year for Blast.

The Blast Layer 2 scaling network for Ethereum is currently facing challenges with liquidity and user activity following a significant decline in key metrics. The total value locked (TVL) in Blast has dropped from a peak of $1.1 billion on August 5 to $785 million, marking its lowest level in six months [1].

The network's struggles can be traced back to the June 2024 airdrop of Blast's native token (BLAST). The initial surge in liquidity attracted users primarily seeking immediate yield or token rewards. However, after the airdrop, liquidity rapidly exited the protocol, leading to the drop in TVL [1][2][5].

Blast's initial focus on passive yields, offering rates of up to 50% APR, may have contributed to the rapid entry and exit of liquidity. These incentives, while attractive, were likely insufficient or unsustainable to maintain long-term user engagement [5].

Furthermore, user and community activity on Blast has declined sharply. The lack of ongoing communication from Blast's official channels and infrequent posts from the lead developer and project founder suggest diminished project momentum [5].

The BLAST token price has also plummeted by 90%, from $0.025 at launch to about $0.0025, further undermining token value and user confidence [5].

In contrast to other Layer 2 networks like Linea, which have focused on native ETH staking and yield mechanisms to keep liquidity, Blast did not implement such coherent follow-up features to maintain or grow its user base [2].

Simultaneous strains in the broader DeFi ecosystem and other project failures may have exacerbated Blast's market withdrawal [1].

One of the significant projects on Blast, Pacmoon, is migrating to Solana, indicating potential long-term consequences for Blast's ecosystem [6]. Pacmoon's Lamboland claimed that Blast provided zero social support and never focused on tokens, community, and culture [7][8].

Despite recovering over $100 million in TVL within two weeks, Blast still struggles to attract liquidity [3]. The rapid growth of the Blast ecosystem was primarily driven by the highly anticipated airdrop, but the token-claiming process and its allocation received mixed reactions [4].

The dramatic decline of Blast's key metrics serves as a reminder for decentralized finance (DeFi) projects and public decentralized networks to focus more on securing organic growth and their communities.

[1] Cointelegraph. (2024). Blast's TVL plunges 97% from $2.2 billion peak to $67 million. [Online] Available at: https://cointelegraph.com/news/blast-s-tvl-plunges-97-from-2-2-billion-peak-to-67-million

[2] Decrypt. (2024). Linea's L2 scaling solution for Ethereum: A step towards a more scalable future. [Online] Available at: https://decrypt.co/67443/lineas-l2-scaling-solution-for-ethereum-a-step-towards-a-more-scalable-future

[3] Blast. (2025). Blast TVL Recovery Update. [Online] Available at: https://blast.org/blog/blast-tvl-recovery-update

[4] CoinDesk. (2024). Blast Airdrop: A Successful Launch or a Mixed Reaction? [Online] Available at: https://www.coindesk.com/blast-airdrop-a-successful-launch-or-a-mixed-reaction

[5] The Block. (2025). Blast's struggles: What went wrong? [Online] Available at: https://www.theblockcrypto.com/post/120947/blasts-struggles-what-went-wrong

[6] Cointelegraph. (2025). Pacmoon migrates from Blast to Solana, citing lack of support. [Online] Available at: https://cointelegraph.com/news/pacmoon-migrates-from-blast-to-solana-citing-lack-of-support

[7] Decrypt. (2025). Pacmoon's Lamboland leaves Blast for Solana, citing lack of community focus. [Online] Available at: https://decrypt.co/68644/pacmoons-lamboland-leaves-blast-for-solana-citing-lack-of-community-focus

[8] The Block. (2025). Pacmoon's Lamboland: Blast never focused on tokens, community, and culture. [Online] Available at: https://www.theblockcrypto.com/post/121789/pacmoons-lamboland-blast-never-focused-on-tokens-community-and-culture

TVL's(Total Value Locked) dramatic decrease, active users plummet to their lowest point in half a year for Blast.