Blast Abandons Layer 2 Chain Over Unsustainable Costs

DeFi platform Blast is shutting down its Layer 2 chain, citing unsustainable operating costs. In June 2024, Blast held $2.2 billion in DeFi deposits and offered users native yield for keeping ETH on its chain.

The decision affects about $63.5 million in assets still bridged to the Blast chain, which will be recoverable through bridge contracts after October 26.

Users were told to move their assets to Ethereum by October 26, with withdrawals paused for a week while Blast unwinds its Lido position and resume with a 24-hour delay.