Blast Ethereum Layer-2 Network Shuts Down Due to Unsustainable Economics

Ethereum layer-2 network Blast is shutting down due to unsustainable economics. In a recent post on X, the team stated that costs have exceeded revenue and there is no 'credible path' to economic sustainability.

The decision comes after Blast's DeFi activity contracted sharply, with its total value locked (TVL) falling by more than 98% since its June 2024 peak of $2.2 billion.

The team has set a deadline for users to withdraw their assets to Ethereum mainnet before October 26th. Withdrawals will be temporarily unavailable during a process described as unwinding Lido-related assets, which is expected to take about a week.