Blast Closes Down Due to Unsustainable Operating Costs

Blast, an Ethereum Layer 2 network, has announced it will shut down due to unsustainable operating costs. The decision comes after the network raised $20 million from investors including Paradigm and Standard Crypto in November 2023. According to Wu Blockchain, Blast cited operating costs exceeding revenue as the reason for its shutdown. The network will ask users to withdraw their assets to Ethereum mainnet by October 26.

Users will have 24 hours to complete their withdrawals, a reduced delay compared to the original timeline. Assets left on Blast after the deadline will still be withdrawable through the project's bridge contracts on Ethereum Layer 1. Blast's shutdown marks another setback for Ethereum Layer 2 networks, which have struggled to achieve economic sustainability.