Blast Network Faces 65% TVL Plunge, Losing $2 Billion Post-Mainnet Launch Amid Phishing Menace

In a swift turn of events, the Ethereum-based layer two blockchain, Blast, witnessed a staggering 65% decline in Total Value Locked (TVL) within just 24 hours of its mainnet launch on February 29.
Crypto investors rapidly withdrew their assets, causing TVL to plummet from its peak of $2.27 billion to $745.47 million, according to data from DefiLama and Flipside.

Blast had garnered attention last year by enticing community members to lock up their Ethereum and stablecoin assets with promises of up to a 5% annual percentage yield. Despite criticisms regarding the inability to withdraw assets until the mainnet launch, the appeal of high yields and potential airdrops attracted significant participation. However, with the successful mainnet launch, users swiftly withdrew their assets, leading to the drastic drop in TVL.

Despite this setback, Blast remains operational and reports over 1 million total transactions on the network, along with the launch of several new decentralized applications. Unfortunately, the mainnet launch also became a breeding ground for malicious actors who exploited the situation to create phishing sites mimicking Blast’s official platform.

Web 3 security firm Scam Sniffer revealed two instances where users suffered losses exceeding $5 million in digital assets due to interacting with fraudulent sites. In one case, a user lost $4.39 million in $ALI and $PUSH tokens through a deceptive Uniswap Permit2’s Permit Batch message. Another user lost $717,817 worth of Aave BTC and Pandora tokens through an airdrop phishing site.

These incidents prompted Scam Sniffer to issue a stark warning about the proliferation of phishing sites impersonating Blast. The firm emphasized the dangers of clicking on links in Twitter comments and urged users to exercise caution. Blast echoed this sentiment, urging its community to remain vigilant against scammers and rely exclusively on official documentation for accessing block explorers, RPCs, and other chain-related information. As Blast navigates through this challenging period, the focus is on ensuring the security and trust of its community against the backdrop of recent adversities.

Empowering Web3 Development: Unveiling the Decentralized Potential of Blast Infrastructure

In the ever-expanding realm of Web3, the importance of decentralized infrastructure cannot be overstated, and Blast is at the forefront of this transformative movement. At Bware, the creators of Blast, the mission is clear: to empower Web3 developers with a seamless and decentralized ecosystem. Blast introduces a decentralized node infrastructure, a robust developer API, and a versatile SDK, all tailored to facilitate the creation of scalable and decentralized applications (dApps) across 22 blockchain networks.

The heart of Blast lies in its permissionless node network, inviting anyone to contribute as a node provider. This decentralized network ensures that developers, utilizing Blast, experience enhanced security, resilience, and reliability for their dApps. The Blast API, supporting a multitude of blockchain networks, provides a user-friendly interface for efficient RPC method calls, while the Blast SDK acts as a multi-chain, decentralized SDK, simplifying the development process.

With a commitment to user accessibility, Blast offers a dashboard for exploring usage statistics and facilitates a hassle-free onboarding experience, allowing developers to dive into decentralized infrastructure in less than five minutes. With a generous free tier and a dedication to a decentralized future, Blast stands as a pioneering force in making decentralized development as accessible as its centralized counterparts.

Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.

Author: Mehar Nayar

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