Blast Network Faces Challenges as TVL Plummets 62% and Daily Active Users Drop to Six-Month Low

Recently, Blast Network has faced significant challenges, with its TVL plummeting by an alarming 62% from its peak

Blast Network has faced several challenges recently, including a 62% drop in TVL from its peak and a loss of $300 million in liquidity. The network’s TVL dropped to $785 million by August 5, its lowest in six months.

Despite recovering over $100 million in TVL, Blast still remains down over 60% from its record high of $2.3 billion in early June.

The challenges are also highlighted by a decline in daily active users, which fell to 27,800 by August 18, the lowest since Blast began its expansion in late February.

This contrasts with rivals Base and Arbitrum, which have 740,000 and 360,000 daily active wallets, respectively. In mid-June, Blast-based dapps saw more than 180,000 daily wallet users.

The decline follows a problematic airdrop in June and growing dissatisfaction among users and developers. Initiatives like Pacmoon are exploring other options.

Pacmoon’s Lamboland has criticized Blast, saying, “Blast failed to address these crucial aspects and built a system that focused on token creation without providing necessary social support.”

The network has also been criticized for its launch strategy, especially regarding the bridge feature that prevented users from accessing their funds for an extended time.

This situation has only intensified the mounting frustration felt by both the community and developers.

The dramatic decline of Blast’s key metrics demonstrates that decentralized finance (DeFi) projects and public decentralized networks should pay more attention to securing organic growth and focusing on their communities and use cases.

The ecosystem experienced a swift expansion fueled by the eagerly awaited airdrop. Yet, when the giveaway kicked off in June, responses varied, as numerous users expressed dissatisfaction with the token-claiming procedure and how the tokens were distributed.

Not only were airdrop participants unhappy with the network’s approach, but some projects building on Blast were also frustrated. For instance, Pacmoon, previously the leading meme coin on layer 2, is making the move to Solana.

According to Pacmoon’s Lamboland on X, “We think that tokens, community, and culture are what make a blockchain successful. However, Blast never focused on that. They created a system where native tokens on Blast are actively disincentivized and they provided zero social support.”