Morning Minute | Blast Phase 2 Disappoints

TylerD's Market Summary

💰 Blast Releases Phase 2 Guide to Disappointment

The Blast ecosystem has largely been on hold since the airdrop last Wednesday.

With everyone waiting for what Pacman and team would roll out for incentives for Season 2.

Well we got the update yesterday, and they weren't received well.

What Happened?

Yesterday Blast released its "Blast Phase 2" guide, explaining how the next 12-month season of rewards will work with respet to Points, Gold, vesting, and more.

TLDR of the announcement:

• 50% of rewards (5B BLAST) to Blast Points and 50% to Gold
• Points earned based on ETH, WETH, USDB and BLAST balances
• 1 Gold distribution per month in the first week, separate for new and existing dapps
• More Big Bang comps coming to incubate new Dapps
• Dapps must distribute all Gold before receiving next allocation
• Golden Tickets will continue, giving users chance to earn Points, Gold and Prizes via app usage
• Jackpot will continue but with less gold and less frequent wins (BLAST is not eligible)
• Multipliers will exist for Points but will be different from Phase 1
• Referrals only count for new users, not old

For those with more questions, there is a community AMA in the Blast Discord today at 12 pm ET.

Market Response

Not great.

It was a sea of red on the Blast board after this announcement.

BLAST fell 12% to $0.1869 which equates to a $1.87B fdv (and $320M mc).

That drop moved Blast out of the top 150 crypto tokens by market cap, now in 160th place.

It was even worse for the memecoins and ecosystem tokens.

• PAC -24% to $11.2M
• ANDY -18% to $22M
• YOLO -12% to $9M

Successful trader, investor and Blast user Darran0x commented:

"The vision is great: Mobile-first, native yield, and focused on dapps.

The valuation is great: If the vision attracts users and novel applications, the FDV is much lower than comparable chains.

The Phase 2 rewards are not great: ETH and USDB receive native yield and BLAST does not. By normalizing the points for all three assets to their ETH-equivalent value, the absence of native yield makes BLAST the least attractive asset to hold for Phase 2 rewards. Even more challenging, L2 tokens are viewed as "worthless governance tokens" until proven otherwise."

His sentiment seemed to match most of the timeline in early response.

The key - there is no major incentive to hold Blast.

The Dapps have been empowered to create use cases and incentives for holding Blast, vs Pacman and team.

In theory this should be a fine outcome.

The problem is, the market expected more fireworks from Pacman. Instead of launching the incentives himself, he's pushed it off to others.

And that's not what many signed up for.

What Next?

The wildcard, and hopium, here for Blast - how will the Points Council respond?

Many are already calling for new proposals to reward holding Blast.

In fact, there is already a new proposal in the Blast forum to distribute all fees earned by the Blast Foundation Treasury to BLAST holders on a weekly basis.

So there are some outs here.

New proposals could bring the Blast incentives many hoped for.

Additionally, Blast Dapps could bring interesting new use cases that incentivize holding and/or using BLAST.

If those are successful, the token could certainly rebound.

But that's a big IF right now.

Let's see how the community responds.

🚚 What else is happening in NFTs?

Here is the list of other notable headlines from the day in NFTs:

• ETH led NFT trading volume with $7M (+30%) on the day; Polygon was next with $4.8M, then SOL with $2.8M (-16%) and then BTC with $2M 
• ETH NFT leaders were mixed on the day; BAYC +3% to 10.12 ETH, Pudgy -4% to 11.5 ETH, Azuki +4% to 3.73 ETH and Milady -1% at 5.38
• AlignDRAW, Nakamigos and Valhalla were top movers on the day, jumping 50% and 30% respectively
• BTC NFT leaders were mostly red; NodeMonkes +1% at 0.177 BTC, Puppets -4% at 0.137 BTC, OMB -2% at 0.215 and Quantum Cats -3% at 0.25
• The Runes leaders were also red; DOG -1% at $560M mc, RSIC -7% at $94M mc and PUPS -12% at $60M
• Solana NFTs were red and seeing a major reversal; Mad Lads -8% at 83 SOL, SMB Gen 2 -4% at 30, DeGods -3% at 19.6, Tensorians -5% at 13.7
• Opepen set "Shiddy Opepen" by Diewithmostlikes met the demand threshold and will go live Thurdsay at 10 am ET

💰 Token, Airdrop & Protocol Tracker

Here's a rundown of major token or airdrop news from the day:

🌎 Around Crypto and Web3

A few other Crypto and Web3 headlines that caught my eye:

• Crypto majors are down this morning; BTC -4% at $60,250; ETH -4% at $3,300, SOL -2.7% at $144
• Memecoin majors are down more with DOGE -2%, PEPE -8, WIF -10%, BONK -7%, MOG -18%
• US inflation is down to 1.8% year-over-year according to Truflation
• KAMA soared 250% after Kamala Harris's odds to be the Democratic Nominee jumped to 20% on Polymarket

🚀 Memecoin Movers 

• $KAMA (+240%, $10M market cap, SOL)
• $DADDY (+30%, $90M market cap, SOL)
• $WAT (+34%, $17M market cap, ETH) 
• $DRAGGY (+32%, $9M market cap, ETH)
• $BLS (+15%, $150M market cap, AVAX)

📈 NFT Floor Price Increase (ETH)

• Anonthology (66%, 0.04 ETH Floor)
• alignDRAW (52%, 1.25 ETH)
• Nakamigos (34%, 0.1 ETH)
• Valhalla (27%, 0.14 ETH)
• Plooshies (24%, 0.23 ETH)

🗓 Upcoming Mints and Events

Today is a very slow day of drops coming off the holiday weekend.

Adam Disbrow is the meme card artist, and there are a few drops on Bitcoin today as well.

See the full list and dive in for more details with Swizzy's daily mint monitor. 

• Memes by 6529 (11:00 a.m. ET)
• BlocKhZ (12:00 p.m. ET)
• BTC Machine - ZBIT Loot Box (12:00 p.m. ET)

Enjoy this write-up and/or want to sponsor the Morning Minute? Follow along with me on Twitter @tyler_did_it or reach out via email to tyler.warner@luckytrader.com.