Blast Ethereum Layer-2 Network to Shut Down Due to Unsustainable Costs

Ethereum layer-2 network Blast is shutting down due to unsustainable costs. Blast's total value locked (TVL) has plummeted from over $2 billion to $32 million, a decline of nearly 98%. The network's high operational expenses outweighed its revenue, prompting the shutdown announcement.

Blast's token price dropped 17% after the news, reducing its market capitalization to around $23 million. The network will first retrieve assets deposited with Lido, a process expected to take about a week. Once complete, users can withdraw assets through the Blast interface until October 26. After that, they'll need to use the Blast bridge contract on Ethereum directly.

Blast launched in November 2023 after raising $20 million in a funding round led by Paradigm and Standard Crypto. The network's mainnet went live in February 2024.