This Ethereum Layer 2 TVL Surged Past $600 Million in 7 Days
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Last week, the world of decentralized finance (DeFi) welcomed the Blast Network. The protocol quickly reached a milestone of $400 million in total locked value (TVL), and $600 million in seven days. Since then, the total value locked has risen to $722 million. A somewhat surprising feat, given rants against the project’s centralization. Blast Scores $600 Million TVL in Mostly Staking Deposits The success story of Blast is told in the numbers. It racked up a TVL of $400 million in four days and $600 million in seven days, quickly growing into a notable force in DeFi. TVL measures the value of assets locked, primarily through staking, in a DeFi protocol. Total Value Locked on Blast Network | Source: DefiLlama The Blast Network offers yields on Ethereum and stablecoins. It is successful partly because of the high returns it offers those who lock their assets for an extended period. A high TVL also suggests that users trust the security and robustness of a network. Allegations of Centralization An impressive launch has not deterred criticism that the Blast network is too centralized. Jarrod Watts, a developer at Polygon Labs, tweeted about it earlier this month. Watts thinks the ability to upgrade smart contracts (bits of code that carry out critical functions in decentralized finance) using a wallet posed a security risk. Stolen private keys can give hackers access to the $400 million-plus assets on the network. In Watts’ view, Blast is not a true Layer 2, a network that adds transaction speed and throughput to another blockchain. Rather, it is simply a platform that accepts tokens for staking. Read more: Layer 2 Crypto Projects for 2023: The Top Pick Blast rebutted, saying it is pursuing decentralization. On its website, its makers tout it as “the only layer two of Ethereum with…
Filed under: News - @ December 4, 2023 5:10 pm