Blast Ethereum Network Shuts Down Amid Unsustainable Economics
The Ethereum-based Layer 2 network Blast is shutting down due to unsustainable economics. According to its founder, Tieshun Roquerre, also known as Pacman, the ongoing costs of maintaining Blast exceed the revenue generated by the L2.
Blast was launched with the goal of building a self-sustaining chain for users and developers, but it ultimately failed to achieve this. The network had raised $20 million from investors and held over $2 billion in June 2024, but its value has since fallen dramatically.
The Blast token fell by 19% on the news of the shutdown, while the chain's total value locked (TVL) has dropped to just $32.3 million, a decline of nearly 99%. The network will be shutting down and users have until October 26 to access their funds.