Blast Ethereum Layer 2 Network Shuts Down After Financial Struggles

Blast, an Ethereum layer 2 network that once held $2.3 billion in deposits, is shutting down. The team announced on October 2, 2026, that operational costs outweighed earnings, leaving no viable solution to sustain the network. Users have until October 26 to withdraw their funds through the network’s app.

The decision came after a sharp decline in financial performance. In September, the network earned just $1,793, down from a peak of $3.5 million in one of its best months. Total deposits also dropped to $24 million, a 99% decrease from the 2024 peak, and the BLAST token fell nearly 19% following the announcement.

While the network is closing, users' assets remain secure. ETH and stablecoins bridged to Ethereum are locked in a bridge contract, which will continue functioning even after Blast shuts down. However, withdrawals will pause for about a week after October 26 as the team unwinds its staking position. After that, users can retrieve their coins directly from the contract, though this requires more technical expertise.

Users with assets in lending or trading apps on Blast must first withdraw them before bridging back to Ethereum. Notably, Pac Finance and Thruster controlled around $14 million of the remaining deposits. The BLAST token, which derives its value solely from the Blast network, carries the biggest risk, having already lost nearly 99% of its peak value.