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Ethereum Scaler Launches, Unlocks $2.3 Billion in Crypto: Blast Network Alert

The crypto market is abuzz with the recent launch of Blast Network's mainnet, heralding a significant milestone in Ethereum scalability. On February 29th at 9:00 pm UTC, Blast Network's mainnet went live, unlocking approximately $2.3 billion in staked crypto that was previously locked up on the Ethereum layer-2 network. This development marks a pivotal moment in the quest for scalability and efficiency within the Ethereum ecosystem.

Blast Network, an optimistic rollup blockchain scaler, offers users an attractive annual percentage yield (APY) on Ether (ETH) and stablecoins held on the network. The APY is generated from staked ETH and United States Treasury Bills (T-Bills), managed by blockchain protocol and Dai stablecoin creator MakerDAO. Users can earn up to 5% APY on their holdings, providing an incentive for participation and engagement with the network.

Prior to the mainnet launch, crypto sent to the Blast Network was locked in, leaving its 180,000 users unable to withdraw their funds. However, with the launch of the mainnet, users now have the ability to access their previously locked assets, resulting in approximately $400 million in Ether being withdrawn from the network. This withdrawal has led to a decrease in Blast Network's total value locked (TVL), which peaked at $2.27 billion on February 29th, now standing at $1.87 billion after the launch.

The Blast Network has garnered attention from airdrop hunters, who are actively participating in farming activities on the blockchain in anticipation of receiving Blast tokens. The Blast team has announced plans for an airdrop in May, further fueling interest and engagement within the community.

However, Blast Network's launch has not been without controversy. Dan Robinson, research head at Blast seed investor Paradigm, expressed concerns about the project's approach in a November post. Robinson highlighted disagreements regarding Blast's decision to launch the bridge before the L2 and the decision to restrict withdrawals for three months. These decisions, according to Robinson, may set a concerning precedent for other projects in the space.

Despite the controversy, Blast Network's mainnet launch represents a significant step forward in Ethereum scalability and innovation. As the crypto market continues to evolve, developments like Blast Network's mainnet launch play a crucial role in shaping the future of decentralized finance (DeFi) and blockchain technology. With the unlocking of $2.3 billion in staked crypto and the promise of further advancements, Blast Network is poised to make a lasting impact on the crypto landscape.