Blast Ethereum Layer 2 Network Shuts Down Amid Economic Challenges
The Ethereum layer 2 network Blast announced its shutdown due to economic challenges. The team concluded that running the network costs more than it earns, making it unsustainable.
Blast drew in over $2 billion in deposits before its mainnet launch in February 2024, but now holds roughly $65 million in total value locked, down from its peak. The BLAST token's market capitalization has fallen to about $30 million, a 98% decline from its all-time high.
The team instructed users to withdraw their assets to the Ethereum mainnet before October 26 using the standard interface, with a temporary suspension during Lido position unwinding. After the deadline, holders will need to interact directly with Blast's bridge contracts on Ethereum for asset recovery.