On the Blast blockchain, a layer 2 network on ethereum, investors withdrew $1.7 billion of initially staked Ether.
According to data from DeFiLlama, the withdrawals, which make up the majority of assets, occurred within the first 24 hours of launch. Blast had attracted attention by promising native performance on ethereum (eth) L2, amassing more than $2 billion in deposits before going live through a mechanism known as point farming.
Despite the initial frenzy, the network experienced significant capital outflows, with the Blast Bridge contract balance falling by approximately 70%.
However, not all funds are leaving the network, as a portion is moving to Blast's eth Yield Manager Proxy, indicating a movement of capital within the ecosystem.
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The launch was not without controversy, as an optimistic cumulative design requires a 14-day waiting period plus ethereum gas fees for withdrawals to the mainnet, a detail that some investors claim to be unaware of.
Furthermore, the network has already seen its first exit scam, with the protocol called 'RiskOnBlast' disappearing along with $1.3 million worth of Ether.
Blast's journey from a deposit-collecting initiative to a live network has been polarizing. While some critics compared its deposit-only bridge to a pyramid scheme, its proponents have praised its potential to improve ethereum's scalability.
Despite these challenges, Blast has retained significant deposits, potentially positioning it as the third largest layer 2 network on ethereum.
The project, backed by Paradigm and spearheaded by the founder of decentralized nft app Blur, Tieshun Roquerre, has been both a marketing success and a target of criticism due to delays in transitioning from a conceptual project to a functional project.
With more than 85,000 accounts in its Discord community and 57,000 wallets interacting with the chain since its launch, Blast's ecosystem continues to expand, even amid concerns about the viability and security of new projects within its group.
