Deep Dive
1. Crypto Gaming Collapse Impacts Blast (21 December 2025)
Overview:
Blast Royale, a flagship crypto game on the network, ceased operations in June 2025 as venture funding for blockchain gaming evaporated. This followed broader industry collapses where over 15 major crypto games shut down, including Blast-linked projects like Mystery Society and MetalCore. The NOOB token tied to Blast Royale lost 99% of its value post-shutdown.
What this means:
This is bearish for Blast because gaming was a key use case driving user engagement. The collapse removes a major ecosystem pillar and risks further developer attrition. However, it highlights the need for sustainable tokenomics beyond speculative farming. (Decrypt)
2. Blast API Shutdown (3 November 2025)
Overview:
Bware Labs abruptly terminated Blast API, a core infrastructure provider, ahead of its acquisition by Alchemy. This disrupted RPC services for dApps, forcing projects like Raini: The Lords of Light to pivot or adopt multi-provider strategies.
What this means:
This is neutral-to-bearish for Blast. While Alchemy offers migration support, the shutdown underscores centralization risks in Layer 2 infrastructure. Long-term, diversified RPC solutions like NowNodes could improve resilience but may slow developer momentum short-term. (Yahoo Finance)
3. TVL Plummets 97% From Peak (26 August 2025)
Overview:
Blast’s DeFi TVL cratered to $65M (from $2.2B in 2024) as users fled post-airdrop. The BLAST token launched at a $2.9B valuation—below expectations—triggering a 60% TVL drop within two months. Daily active users fell 95% from peak levels.
What this means:
This is bearish short-term, reflecting failed retention of airdrop farmers. However, AMBCrypto projects a potential rebound to $0.0041 by late 2026 if Blast stabilizes developer incentives and regains market confidence. (The Defiant)
Conclusion
Blast faces a trifecta of challenges: gaming ecosystem decay, infrastructure instability, and collapsing capital inflows. While technical fundamentals like native yield remain intact, the network must address centralization risks and rebuild use cases beyond speculative farming. Can Blast leverage its EVM compatibility and partnerships (e.g., SushiSwap) to attract fresh capital in 2026?