Ethereum Layer 2 Blast Is Shutting Down, Saying Costs Now Exceed What the Chain Earns
By Unchained
AI summary of the source article
Ethereum Layer 2 network Blast is shutting down after its team announced that ongoing maintenance costs exceed chain revenue, leaving no credible path to economic sustainability. Created by Blur founder Tieshun “Pacman” Roquerre, Blast asked users to bridge funds back to Ethereum mainnet, offering standard interface withdrawals until October 26. Before resuming withdrawals on a reduced 24-hour delay, the team is pulling assets out of Lido over approximately one week. The closure follows a steep drop in DeFi total value locked from a peak of $2.26 billion in June 2024 to roughly $32 million, while the BLAST token plunged 99% from its June high.
Why it matters
The decision demonstrates that maintaining an L2 chain became economically unviable as operating costs outpaced revenues, forcing the complete wind-down of a network that once commanded billions in locked value.
Key facts
- Blast is shutting down because operating and maintenance costs exceed the revenue generated by the network.
- Users have until October 26 to withdraw assets via the Blast interface before withdrawals require direct interaction with bridge contracts.
- Blast's DeFi total value locked declined from a peak of roughly $2.26 billion in June 2024 to around $32 million.