Blast Ethereum Layer 2 Network Shuts Down Amid Revenue Collapse
Blast, an Ethereum Layer 2 network founded by Tieshun 'Pacman' Roquerre, is shutting down due to a significant decline in activity. The network, which launched in early 2024 with backing from Paradigm, failed to sustain its initial momentum and has seen a dramatic collapse in revenue. According to Defillama, the value of assets locked within Blast-based protocols has dropped from $2.2 billion in June 2024 to $32 million, while fee revenue has fallen from $3.66 million to just over $2,000. The BLAST token, which peaked at nearly $0.03 in 2024, is now down 99% and has a market cap of less than $20 million.
The network's co-founder, Roquerre, posted on X that the economics of operating the chain no longer make sense, with ongoing costs exceeding revenue. Users are being urged to withdraw their assets back to the Ethereum mainnet by October 26, after which transferring assets will only be available via bridge contract interactions. Roquerre expressed disappointment that the chain was not sustainable over the long term but thanked users, developers, and teams for their support.