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Will Blast's Initial Hype Survive the Airdrop Party?

Several factors suggest the road ahead could be bumpy.

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The recent launch of the Blast token (BLAST) has been a whirlwind of activity. The airdrop, a massive distribution of 17% of the token's total supply, fueled a 40% price surge, outperforming many other high-profile airdrops. But can this initial hype last?

This airdrop, along with Blast's impressive growth in DeFi rankings (currently sitting at 6th in DeFi TVL and 4th among Layer 2s), suggests strong initial interest. The token debuted at $0.02 yesterday, resulting in a fully diluted valuation of $2 billion at launch. The price of BLAST rallied some 40% to $0.029 before correcting to $0.0258 currently, a gain of 22.78% since launch, according to CoinMarketCap data.

The airdrop itself fueled some controversy. While the price did rise, the initial valuation of $2 billion fell short of investors' expectations. DeFiance Capital co-founder Arthur Cheong anticipated a closer to $5 billion market cap.

Ethereum layer 2 network Blast aims to be a comprehensive blockchain network, providing a user-friendly experience that surpasses Metamask. It reportedly attracted a significant amount of deposits, totaling $2.3 billion between November and March. According to its Q2 2024 report, Blast has over $3 billion in total value locked, 1.5 million users and over 200 live dApps (decentralized applications). Blast also said it has "higher yield opportunities than any other chain."

But Blast's history isn't spotless. Back in November, even its own seed investors criticized the network for lacking features to justify a one-way bridging mechanism. Additionally, Blast's airdrop attracted a wave of scams, mirroring similar issues with other airdrops this year, like Ethereum layer-2 network zkSync (ZK) and cross-chain interoperability LayerZero (ZRO) – prices of both tokens have fallen by over 40% since launch.

Ultimately, Blast's long-term viability hinges on its ability to deliver on its ambitious vision. Does it offer a user-friendly experience that surpasses existing solutions? Can it develop a robust ecosystem of dApps? These are the questions investors will be asking as the initial hype fades.

While the initial airdrop buzz has been positive, Blast needs to address past criticisms and demonstrate its unique value proposition. While it boasts impressive growth and a sizable airdrop, questions linger regarding its long-term viability. Only time will tell if Blast can live up to its ambitious goals and overcome these criticisms.

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