Blast Ethereum L2 Network to Shut Down Amid Unsustainable Costs

Ethereum Layer 2 network Blast will shut down its operations by the end of October, citing unsustainable costs. The team stated that they couldn't find a 'credible path' to make the chain economically sustainable, with operational costs exceeding revenue. The economics of running the chain no longer make sense, with costs outweighing the revenue generated by the L2.

Users are expected to withdraw their assets from Blast to the Ethereum mainnet. For those with assets locked up in Lido, the team will need one week to withdraw and make the funds available. Blast founder Tieshun Roquerre, also known as 'Pacman' on X, expressed disappointment with the shutdown, stating he was 'grateful to the users, developers, and teams who helped give Blast its moment, even if its run was shorter than we had hoped'.

The community has slammed the founder for 'extraction,' with some accusing him of 'slow rug' and 'extractive' practices. The token's value has dropped by 98% from a $0.80 peak in late 2024 to $0.02 in 2026. The shutdown has also led to criticism from notable venture capital firms and analysts, with Mike Dudas, founder of 6th Man Ventures, calling the founder 'one of the greatest extractors of all time' and a 'disgrace'.