Layer-2 Blockchain Blast Debuts Token With a Valuation North of $2B

The protocol has distributed 17% of its native token supply to users who staked Ether (ETH) earlier this year, earning points through farming.

Layer-2 blockchain protocol Blast has debuted its native token, which is valued at over $2 billion, according to data from CoinGecko.

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

Unsurprisingly, the token experienced a massive sell-off hours after its debut, crashing 18.7 in the last hour. BLAST’s current market cap is $359M, data from CoinBlast is an Ethereum-based layer-2, which works as a scaling solution designed to enhance speed and scalability. It operates as an optimistic rollup using fraud proofs to validate state transitions.

It's the first L2 to provide native yield for ETH and stablecoins, as it actively stakes ETH and passes the yield to network participants and decentralized applications (dApps).

The token’s launch comes shortly after the protocol launched the Blast Foundation, which now controls the project’s Twitter, website, and network. The foundation will manage the project’s critical assets, operations, and infrastructure to enhance transparency and accountability. The transition is a step forward for the protocol and its commitment to a community-based governance model commonly seen in several decentralized finance (DeFi) protocols.