Blast Axes Ethereum L2 Network Over Unsustainable Economics

The Ethereum Layer 2 network Blast has announced its shutdown due to unsustainable economics. The team stated that operating costs exceed the revenue generated by the network, making long-term sustainability impossible.

Blast will shut down its Ethereum Layer 2 after concluding that operating costs outweigh its L2 revenue and there is no credible path to economic sustainability. Users are being urged to move funds to the Ethereum mainnet.

The shutdown process involves unwinding Lido assets, a process expected to take about one week. During this time, withdrawals will remain unavailable. Once completed, users will be able to move funds with a 24-hour delay.