Latest Blast (BLAST) News Update

Deep Dive

1. Blast TVL Collapse (26 August 2025)

Overview:
Blast’s DeFi TVL cratered to $65M (-97% from $2.2B peak) as users abandoned the network post-token launch. The BLAST token debuted at a $2.9B valuation – far below the anticipated $5-10B range – triggering a 60% TVL drop within two months. Daily active users plunged 95% to 3,500, while competitors like Base and Arbitrum retained stronger traction (The Defiant).

What this means:
This reflects waning confidence in Blast’s incentive model and raises questions about Layer 2 sustainability in crowded markets. The FDV drop to $250M suggests speculative demand evaporated post-airdrop, leaving limited organic utility.

2. Centralization Risks Exposed (24 December 2025)

Overview:
A March 2025 node failure froze 12k Blast users for 48 hours, exposing over-reliance on centralized infrastructure. Analysis reveals 90% of ZK-L2s (including Blast) depend on 3-4 prover services, creating systemic risks. Proving costs consume ~65% of chain revenue, bottlenecking scalability (CoinMarketCap).

What this means:
Technical centralization undermines Blast’s decentralization narrative. Until ASICs/on-chain prover markets mature (targeted for 2026), the chain remains vulnerable to outages and MEV exploitation.

3. Gaming Exodus (21 December 2025)

Overview:
Blast Royale closed in June 2025 as crypto gaming funding evaporated – its NOOB token dropped 99%. Blast lost key ecosystem drivers as 15+ gaming projects (including MetalCore and Mystery Society) shut down, eroding developer momentum (Decrypt).

What this means:
The gaming collapse removes a core use case for Blast’s infrastructure. With 30-day turnover at 10.2%, liquidity remains fragile – traders should monitor whether non-gaming dApps can fill the void.

Conclusion

Blast battles collapsing TVL, centralization pressures, and a decimated gaming ecosystem – three interlocking crises threatening its viability. While technical upgrades could alleviate proving bottlenecks in 2026, the chain must demonstrate renewed developer traction beyond airdrop farming. Can Blast pivot to DeFi or RWA use cases before liquidity fully erodes?

Deep Dive

1. @royaltybnb: "TOP BLAST TO 15M COMING" – Bullish

"Imagine Blast Scroll Linea Mode Manta except the team is allowed to just post some numbers and call it their TVL"
– @royaltybnb (2,293 followers · 8,840 impressions · 2025-10-18 03:02 UTC)
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What this means: This is bullish for BLAST because it reflects retail trader optimism about price recovery potential, though the hyperbolic target lacks fundamental support.

2. @delucinator: TVL Reality Check – Bearish

"When you farm decentralized perpetual exchange points...Blast Gold...whatnot besides the top 2~3 (Arb/OP equivalent) good luck!"
– @delucinator (28,449 followers · 9,744 impressions · 2025-10-15 02:09 UTC)
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What this means: This is bearish for BLAST as it critiques the sustainability of Blast's yield farming incentives compared to established L2 competitors.

3. The Defiant: 97% TVL Drop – Bearish

Report reveals Blast's TVL crashed to $65M (-97% from peak) with daily active users down 95% since June 2024 airdrop.
– The Defiant (2025-08-26 22:00 UTC)
What this means: This is bearish because it confirms mass user exodus following BLAST's underwhelming $2.9B token launch valuation versus expected $5-10B.

4. CCN: Technical Rebound – Bullish

BLAST rose 15% to $0.0023 (Jul 2025) after token unlock, with RSI/MFI signaling bullish momentum despite -20% monthly performance.
– CCN (2025-07-04 08:02 UTC)
What this means: This is cautiously bullish as technical indicators suggest short-term recovery potential, though dependent on maintaining $0.002 support.

Conclusion

The consensus on BLAST is mixed – while technical traders see rebound potential, fundamental metrics like TVL (-97%) and user retention remain alarming. A critical watchpoint: Whether the Sushi integration (Mar 2024) can drive meaningful ecosystem activity before June 2025's Stage 2 airdrop concludes. Monitor exchange inflow spikes like the $31M ETH whale deposit to Binance for early sell pressure signals.

Deep Dive

1. Mobile Incentive Overhaul (Q4 2025)

Overview: Blast phased out its Points and Gold systems, replacing them with liquid $BLAST tokens as the primary incentive mechanism for mobile app transactions. This shift simplifies user rewards and aligns with broader ecosystem monetization.

The update reflects Blast’s pivot toward mobile-first DeFi, requiring backend adjustments to handle real-time $BLAST distributions and app-specific payment integrations. Developers must now use $BLAST for in-app transactions, necessitating smart contract upgrades for compatibility.

What this means: This is bullish for BLAST because liquid incentives reduce friction for users and developers, potentially boosting adoption. However, reliance on $BLOY price stability introduces new volatility risks. (Source)

2. USDB Yield Integration (Q4 2025)

Overview: Blast deepened its integration with MakerDAO’s Real-World Asset (RWA) protocols, automating USDB stablecoin yield distribution at an 11.5% baseline rate.

Under the hood, USDB is now directly backed by Maker’s DAI reserves, requiring code updates to ensure seamless cross-chain conversions (e.g., USDC/USDT on Ethereum to USDB on Blast). This also involved audits to mitigate risks in yield-bearing stablecoin mechanics.

What this means: This is neutral for BLAST because while yield reliability improves, USDB’s dependence on MakerDAO’s centralized RWA exposure could deter decentralization advocates. (Source)

3. Earn App Launch (Q4 2025)

Overview: The new Earn app consolidates yield opportunities, offering up to 15% APY paid in $BLOY by combining MakerDAO’s baseline rate and protocol incentives.

The app required upgrades to Blast’s yield aggregation layer, including dynamic APY calculations tied to $BLAST’s market price and liquidity pool optimizations. Security audits focused on mitigating reentrancy risks in multi-asset deposits.

What this means: This is bullish for BLAST because it enhances user retention through simplified yield access, though APY volatility could pressure smaller holders. (Source)

Conclusion

Blast’s recent updates prioritize mobile accessibility and yield sustainability, but hinge on $BLAST’s market performance and MakerDAO’s stability. Will the shift to liquid incentives attract developers beyond airdrop farmers, or deepen reliance on speculative rewards?

Deep Dive

1. Cryptonative Wallet Development (2026)

Overview:
Blast plans to release a dedicated wallet designed to replace fragmented Web3 experiences, emphasizing ease of use for crypto-native users. The wallet will integrate natively with Blast’s yield-bearing assets (ETH/USDB) and prioritize features like gasless transactions and cross-chain swaps.

What this means:
This is bullish for BLAST because a seamless wallet could reduce reliance on third-party tools like MetaMask, potentially increasing network activity and fee capture. However, adoption depends on UX parity with established competitors.

2. Ecosystem Growth Incentives (Ongoing)

Overview:
Blast continues allocating Blast Gold – tokens given to developers to distribute via dapps – to bootstrap ecosystem activity. Recent programs like Big Bang (2024) funded 100+ projects, with ongoing grants targeting DeFi and gaming verticals.

What this means:
This is neutral-to-bearish short-term, as incentives risk attracting mercenary capital. Long-term upside hinges on retaining users post-rewards, similar to Blur’s NFT marketplace trajectory.

3. Mainstream Adoption Push (2026+)

Overview:
Phase 2’s endgame involves leveraging USDB – Blast’s yield-bearing stablecoin (5th largest by DEX volume) – to onboard traditional users. Plans include fiat ramps and partnerships emphasizing USDB’s auto-compounding yield as a bank alternative.

What this means:
This is highly bullish if executed, as stablecoin dominance could anchor Blast’s utility beyond speculative trading. Regulatory clarity around yield-bearing stablecoins remains a key risk.

Conclusion

Blast’s roadmap balances technical upgrades (wallet), ecosystem incentives, and a bold pivot toward mass-market stablecoin utility. While recent TVL declines (-97% from peak) highlight execution risks, the focus on full-stack optimization and USDB’s unique value proposition could redefine its role in Ethereum’s L2 landscape. Will Blast’s “unbank the banked” vision resonate beyond crypto natives?