Blast Debuts Its Token With a Valuation North of $2B, Experiences Massive Sell-Off

Blast, the controversial layer-2 blockchain, has debuted its token with a valuation north of $2B, according to data from CoinGecko.

Blast, a layer-2 blockchain, has unveiled its token, which is currently valued at over $2 billion, according to CoinGecko.

The protocol has allocated 17% of its native token supply to users who staked Ether (ETH) earlier this year and earned points through farming. The token debuted at around $0.03, giving it an initial fully diluted valuation (FDV) of $3 billion.

However, the token has experienced a significant sell-off in the hours following its debut, dropping 18.7% in the last hour. According to CoinGecko, BLAST currently has a market capitalization of $359 million.

The Blast Foundation

Blast is an Ethereum-based layer-2 that serves as a scaling solution for improving speed and throughput. It operates as an optimistic rollup, utilizing fraud proofs to validate state transitions.

The protocol is notable for being the first L2 to offer native yield for ETH and stablecoins. It actively stakes ETH and distributes the yield to network participants and decentralized applications (dApps).

The token launch comes shortly after the protocol established the Blast Foundation, which now manages the project's Twitter, website, and network.

The foundation will oversee the protocol's critical assets, operations, and infrastructure to promote transparency and accountability. This transition aligns with the protocol's aspiration for a community-based governance model, which is frequently observed in DeFi protocols.

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