Blast Ethereum L2 Shuts Down Amid Unsustainable Costs

Blast, an Ethereum Layer 2 (L2) project, is shutting down due to unsustainable costs. The team behind the project announced that the ongoing expenses of maintaining the chain exceed the revenue generated, making it impossible to continue operations.

The project, launched in late 2023, promised 'native yield' on ETH and stablecoins. It had a large airdrop and points program, which pulled in billions of dollars before the mainnet went live in early 2024. However, the project's official X account had been silent since September 2025, indicating a slow decline.

The BLAST token, launched in June 2024, briefly reached a market capitalization of around $2.2 billion but has since lost more than 98% of its value. The team has apologized to users and developers who supported the ecosystem and is prioritizing a smooth shutdown.

Users are advised to withdraw their funds from Blast to Ethereum mainnet before the October 26 deadline. The process involves moving funds through the Blast PWA and DeFi protocols on the chain. After October 26, users will need to interact directly with the Blast bridge contracts on Ethereum L1.