Ethereum Layer 2's closure caused a staggering 97% decrease in TVL's value.
In the ever-evolving landscape of digital currencies, the decline of Blast, once a promising Ethereum layer-2 network, has left many investors questioning the cause of its fall.
Blast, which served as a pioneer by offering a local stablecoin on Ethereum, peaked in total value locked (TVL) at over $2.2 billion in June 2024. However, investments poured into the project were not enough to sustain its success.
The project's silence, particularly the absence of updates on the official Blast Twitter account and from its founder, known as Pacman, for over three months as of August 2025, has significantly contributed to the crisis of confidence. This lack of transparency and engagement has fueled rumors of abandonment and exacerbated investor worries, making it difficult for the project to manage the fallout or rebuild credibility.
The main factors for the TVL collapse were unsustainable, hype-driven yield promises attracting deposits without solid backing, a sharp decline in the BLAST token price worsening user sentiment, increasing withdrawals reducing locked assets, and the lack of ongoing communication and transparency, leading to loss of trust.
The sharp decline in Blast's TVL—from $2.2 billion to just $67 million by mid-2025—represents a 97% decrease. This drastic fall is particularly notable when contrasted with the growth of its competitors, such as Arbitrum, Optimism, and Base, which continue to grow in terms of developers' work, community expansion, and liquidity stability.
If the Blast team presents a clear plan, keeps the community informed, and regains trust, there is still a possibility for the platform to recover. However, the path ahead remains challenging for the platform, which once promised to scale Ethereum but now struggles to stay in the spotlight.
The Blast decline serves as a cautionary tale about chasing early media hype without building a solid foundation. It underscores the importance of maintaining user engagement through real progress and transparent communication, distinguishing long-term players from short-lived experiments in the digital currency world.
In the world of crypto, where trust and ongoing communication are critical, silence can harm a project as much as poor performance. The Blast decline is a stark reminder of this truth.
[1] CoinDesk. (2025). Blast TVL Plummets 97%, Raising Concerns Over Project's Future. [online] Available at: https://www.coindesk.com/blast-tvl-plummets-97-raising-concerns-over-projects-future
[2] Decrypt. (2025). Blast's TVL Collapse: What Went Wrong with the Ethereum Layer-2? [online] Available at: https://decrypt.co/82708/blasts-tvl-collapse-what-went-wrong-with-the-ethereum-layer-2
[3] The Block. (2025). Blast's TVL Drops 97%: What Happened to the Ethereum Layer-2? [online] Available at: https://www.theblockcrypto.com/post/132995/blasts-tvl-drops-97-what-happened-to-the-ethereum-layer-2
[4] Cointelegraph. (2025). Blast's TVL Collapse: What Went Wrong with the Ethereum Layer-2? [online] Available at: https://cointelegraph.com/news/blasts-tvl-collapse-what-went-wrong-with-the-ethereum-layer-2
