Blast Ethereum Layer 2 Network Shuts Down Due to Unsustainable Costs
The Ethereum-based Layer 2 network Blast is shutting down due to unsustainable operating costs. Despite raising $20 million from investors, including Paradigm and Standard Crypto, in November 2023 for early access, the team could not find a path to economic sustainability.
In a recent announcement, Blast stated that maintaining the network exceeds its revenue, leading to the decision to shut down. Users are being urged to withdraw their assets from the network to the Ethereum mainnet by October 26, 2026.
The withdrawal process will be divided into two phases. First, user withdrawals will be temporarily unavailable as Lido assets are withdrawn. Once this phase is complete, withdrawals will resume with a 24-hour wait time.
After the deadline of October 26, users can still withdraw their assets but must interact directly with Blast bridge contracts on Ethereum. The team has promised to publish detailed instructions for this method before the deadline.