Recently, the launch of Blast token (Blast) has caused quite a stir. The airdrop accounts for 17% of the total token supply, driving a 40% price surge, outperforming many other well-known airdrops. But can this initial hype be sustained?
This airdrop, coupled with Blast’s impressive growth in DeFi rankings (currently ranked sixth in DeFi TVL and fourth in Layer 2s), indicates the initial strong interest. The token’s price at its debut yesterday was $0.02, thus valuing it at a fully diluted $20 billion upon release. According to CoinMarketCap, the price of BLAST has risen by about 40% to $0.029, currently correcting to $0.0258, representing a 22.78% increase since its launch.
The airdrop itself has sparked some controversy. While the price did indeed increase, the initial valuation of $20 billion fell short of investors’ expectations. Arthur Cheong, co-founder of DeFiance Capital, expects the market cap to reach close to $50 billion.
Wow, BLAST’s trading price is only $20 billion, considering the previous L2 trading price at launch, I expect it to reach at least $50 billion. The days of eagerly awaited infrastructure projects trading over $20 billion on launch day might be over. – Arthur (@Arthur_0x) June 26, 2024
The Blast second-layer network on Ethereum aims to be a comprehensive blockchain network, providing a user-friendly experience beyond Metamask. It reportedly attracted a large deposit volume from November to March, totaling $23 billion. According to its second-quarter 2024 report, Blast has locked up a total value of over $30 billion, with 1.5 million users and over 200 real-time dApps (decentralized applications). Blast also claims to have “revenue opportunities higher than any other chain store.”
But Blast’s history is not without blemish. As early as November, even its seed investors criticized the network for lacking a one-way bridging mechanism. In addition, Blast’s airdrop has attracted a wave of scams, reflecting similar issues with other airdrops this year, such as the Ethereum second-layer network zkSync (ZK) and cross-chain interoperability LayerZero (ZRO) – both tokens have fallen by over 40% since their launch.
I was destroyed by the farming explosion. We won’t discuss specific numbers, but if I had invested 5% return on my investment. Whose fault is it? 100% it’s my own. This is my self-analysis, hoping people can learn from my mistakes. So, who is the biggest winner? ⤹
