Blast Chain Shuts Down Amid Rising Security Costs and Consolidation

Ethereum-based Blast chain is shutting down after two years of operation. The project's team announced that the economics of running the chain no longer make sense, citing high operating costs and low revenue. According to DeFiLlama, the total value locked on Blast peaked at $2 billion in June 2024, but has since fallen to $32 million. The chain generated just $1,793 in revenue from network usage last month, down from a peak of $3.5 million in June 2024. The team has given users until October 26 to withdraw their assets to Ethereum through Blast's interface.

The closure of Blast points to a broader shakeout among blockchain networks. Large consumer platforms such as Coinbase and Robinhood have launched their own Ethereum-based networks, making it harder for smaller chains to compete. The recent wave of crypto exploits has also drawn attention to security spending, and the use of AI tools may make it easier for attackers to probe code for weaknesses.