Blast Crypto Network Shuts Down Amid Unsustainable Economics

The crypto network Blast is shutting down due to unsustainable economics. In a tweet on October 2, 2026, the Blast team announced that the ongoing costs of maintaining the chain exceed the revenue generated by the Layer 2 (L2) network. Blast's founder, Tieshun Roquerre, also known as Pacman, expressed disappointment at the decision but gratitude to users and developers who helped bring Blast to life.

Blast was a cheaper side network that ran on top of Ethereum and paid interest on deposits, promising a token reward. However, the money earned came primarily from the reward, and the Blast token price fell 19% on the news of the shutdown. At its peak in June 2024, Blast held $2.24 billion in assets, but its value-locked (TVL) has since dropped to $32.3 million, a decrease of nearly 99%, according to DefiLlama data.

Around $51 million still remains in Blast's contracts, with most of it being staked ETH held with Lido, an interest service. The Blast team must first withdraw its funds from Lido, a process that takes about a week, before users can access their assets. L2BEAT, a site that rates network safety, flags the design risk of Blast's contracts, where any three of the five keyholders can change them instantly or pause withdrawals.