The Blast TVL decline is a collapse of the network’s total value locked from $2.2 billion in June 2024 to roughly $67 million by August 2025, driven by mass withdrawals and founder silence. This liquidity crisis has eroded trust and disrupted Ethereum Layer 2 dApps and pools.
TVL fell from $2.2B (June 2024) to $67M (Aug 2025)
Founder Pacman’s public silence coincided with accelerated withdrawals and trust erosion.
Mass withdrawals triggered immediate liquidity shortfalls, destabilizing APR offers (4% ETH, 5% stablecoins).
Blast TVL decline: Blast Layer 2 TVL collapsed from $2.2B to $67M, causing a liquidity crisis — read analysis and recommended actions for investors.
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What is the Blast TVL decline?
The Blast TVL decline describes the fall in total value locked on the Blast Ethereum Layer 2 network from over $2.2 billion in June 2024 to approximately $67 million by August 2025. The drop reflects widespread withdrawals, reduced liquidity, and deteriorating investor confidence in the protocol.
Why did Blast’s TVL drop so sharply?
Mass withdrawals were the primary driver. Large-scale exits overwhelmed available liquidity, removing collateral and destabilizing APY incentives that previously attracted deposits. Founder Pacman’s lack of public communication amplified uncertainty; as industry observers note, “The simultaneous silence of founders and sudden outflow of capital demonstrate the fragility of trust in DeFi Layer 2s.”
How has the decline affected users and dApps?
The liquidity shortfall disrupted ETH-based dApps and pools relying on Blast’s bridges and rollups. Financial offers such as 4% APY on ETH and 5% on stablecoins became unsustainable, prompting rapid re-pricing and withdrawal cascades. dApp operators reported increased failed transactions and higher slippage across affected pools.
When did the collapse accelerate?
TVL held above $2 billion through mid-2024, then began a multi-stage decline. The steepest outflows occurred in mid-2025, culminating in the $67 million figure reported in August 2025. Withdrawal volumes and on-chain metrics indicate concentrated exits in short windows, consistent with liquidity runs.
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Blast’s TVL declined from over $2.2 billion in June 2024 to about $67 million in August 2025, a reduction exceeding 96% of locked capital over a 14-month period.
Founder Pacman’s lack of public updates increased uncertainty, reducing the likelihood of coordinated liquidity management and accelerating withdrawals as stakeholders sought to preserve capital.
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Source: https://en.coinotag.com/blast-ethereum-layer-2-tvl-fall-to-67m-could-raise-liquidity-and-trust-concerns-for-ethereum-ecosystem/