Blast network TVL plummets 65% losing $2 billion in 24 hours post-mainnet launch

cyptouser3 months agoCryptocurrencies News73

Crypto investors have swiftly removed their assets on the Ethereum-based layer two blockchain Blast following its Feb. 29 mainnet launch.

According to DefiLama and Flipside data, the total value of assets locked (TVL) on the network plummeted by over 65% in the past day, dropping to $745.47 million from a peak of $2.27 billion.

Ethereum Blast network
Ethereum-based Blast L2 Network TVL (Source: Flipside)

Last year, Blast enticed community members to lock up their Ethereum and stablecoin assets, offering up to a 5% annual percentage yield generated from staked ETH and real-world asset protocols.

The allure of high yields and potential airdrops incentivized community members to participate. However, this move drew criticism from crypto stakeholders, who pointed out that users couldn’t withdraw their assets until the mainnet launch.

With the successful mainnet launch, users have quickly withdrawn their stuck assets, leading to the rapid decline in TVL.

Despite this setback, Blast continues its operations, boasting over 1 million total transactions on the network and witnessing the launch of several new decentralized applications.

Phishing sites on rampage

Meanwhile, malicious actors have exploited Blast mainnet launch to proliferate phishing sites mimicking the layer2 network’s official platform.

Web 3 security firm Scam Sniffer disclosed two instances where individuals fell victim to these schemes, resulting in a combined loss exceeding $5 million in digital assets.

In one case, a user suffered a loss of $4.39 million, comprising $ALI and $PUSH tokens, after interacting with a fraudulent Uniswap Permit2’s Permit Batch message.

Another user encountered a similar fate, losing $717,817 worth of Aave BTC and Pandora tokens through an airdrop phishing site.

These incidents prompted Scam Sniffer to issue a stark warning:

“There are too many phishing sites impersonating Blast! It’s time to remind you once again that clicking on links in Twitter comments is dangerous.”

Blast also echoed this sentiment, urging its community to exercise vigilance against scammers and exclusively rely on official documentation for accessing block explorers, RPCs, and other chain-related information.

The content on this website comes from the Internet. Due to the inconvenience of proofreading the authenticity and accuracy of the copyright or content of some content, it may be temporarily impossible to confirm the authenticity and accuracy of the copyright or content. For copyright issues or other issues caused by this, please Call or email this site. It will be deleted or changed immediately after verification.

related articles

Bitcoin whales copy classic bull market moves as BTC price eyes $72K

Bitcoin whales copy classic bull market moves as BTC price eyes $72K

25cc9d4a˃Bitcoin (BTC) sought higher levels at the week’s last Wall Street open as bulls refused to...

Bitcoin sats the ‘most valuable digital canvas ever’ — Ordinals artist

55966e89˃The lead artist behind the Bitcoin art community “Nurorealm” said it was a “dream come true...

Will decentralized protocols become the future infrastructure of machine learning?

Will decentralized protocols become the future infrastructure of machine learning?

25cc9d4a˃Booming interest in artificial intelligence (AI) and machine learning (ML) has led to a sho...

Uniswap CEO weighs In on ethical token distribution

Uniswap CEO weighs In on ethical token distribution

55966e89˃Hayden Adams, Uniswap’s founder and CEO, has outlined his take on ethical considerations fo...

Hack of a single multisig wallet could drain 12 Ethereum L2s of $121M

Hack of a single multisig wallet could drain 12 Ethereum L2s of $121M

55966e89˃A single multisignature crypto wallet has permissions from 12 different blockchain networks...

Bitfinex documentary on the rise of Bitcoin in El Salvador to premiere in Lugano

Bitfinex is set to debut a new documentary, “Don’t Trust…Verify,” on Oct. 22 in Lu...