Crypto investors have quickly withdrawn their assets from the Ethereum-based layer two blockchain Blast following its Feb. 29 mainnet launch.

Data from DefiLama and Flipside reveals that the total value of assets locked (TVL) on Blast's network has plummeted by over 65% in the past day, falling to $745.47 million from a peak of $2.27 billion.

Last year, Blast attracted community members to lock up their Ethereum and stablecoin assets by offering up to a 5% annual percentage yield from staked ETH and real-world asset protocols. The promise of high yields and potential airdrops encouraged participation, but users were unable to withdraw their assets until the mainnet launch.

Following the mainnet launch, users rapidly withdrew their previously locked assets, causing the sharp decline in TVL.

Despite this decrease, Blast remains operational, recording over 1 million transactions and the launch of several new decentralized applications.

In parallel, phishing attacks have surged, with malicious actors creating fake sites mimicking Blast’s official platform. Web 3 security firm Scam Sniffer reported two significant phishing incidents, resulting in over $5 million in digital asset losses. One user lost $4.39 million in tokens after interacting with a fraudulent Uniswap Permit2 message, while another lost $717,817 through an airdrop phishing site.

Scam Sniffer and Blast have warned users to be cautious of phishing sites and to rely only on official documentation for accessing network resources.