Weekly on-chain 27.11

Blasting the top!

The most notable event last week was the launch of the new Layer 2 Blast from the Blur team. Despite the fact that there is no chain itself yet, the launch was so successful that Blast’s smart contract surpassed $570 million of TVL in less than a week of existence. What other chains couldn’t do for years, Blast did in a week. It has turned the non-existent network into the third-largest Layer 2 solution after Arbitrum and Optimism.

The combination of excellent marketing, a unique points system, a referral mechanism, and big names as backers led to the fact that this project has become the most interesting place where a user can make a deposit. Blast literally soaked up available liquidity from the market, which means there are fewer drivers left for altcoins to continue rising.

While institutional capital is still concentrated in Bitcoin, Blast will likely continue to drain liquidity out of the altcoin market. The market needs more big events to keep growing. It requires fresh blood or a correction to energize the growth.

What will it be?