Blast Ethereum Layer 2 Network to Shut Down Amid 98% TVL Collapse

The Ethereum Layer 2 network, Blast, is set to shut down after a significant decline in its Total Value Locked (TVL) and inability to sustain itself financially. The network's team announced the closure, citing that the ongoing costs of maintaining Blast exceed its revenue, with no prospects for achieving self-sustainability.

According to DefiLlama, Blast's TVL peaked at over $2.2 billion in June 2024, but dropped to approximately $32 million by early October 2026, a decline of more than 98%. Meanwhile, network revenue plummeted, from about $3.5 million in June 2024 to just $6,532 in the last month.

The team has advised users to withdraw their assets to the Ethereum mainnet by October 26, with the withdrawal process occurring in several stages. The closure marks another setback for the crypto industry, following the shutdowns of several other projects in recent months.