To create the blur effect, in frame 1, you need to give each letter in the series instances of two different sizes, one slightly bigger than the other. Select the letter instance on the top layer in the first frame.
In the Transform Panel enter a scale value (140% in this case), with Constrain ticked and click OK.
Repeat this for the letters within the first frame in every other layer, working your way down the layers from top to bottom, missing a layer each time.
