Blast Layer-2 Network Shuts Down After 98 Percent Collapse

Blast, once a leading Ethereum layer-2 network, announced its shutdown on October 2, 2026. The network, which peaked at $2.27 billion in total value locked (TVL) in June 2024, will cease operations, leaving users with until October 26, 2026, to withdraw their funds through the standard interface. After that date, users will need to interact directly with Blast’s bridge contracts on the Ethereum mainnet, a process that requires technical expertise and carries risks.

The collapse of Blast is attributed to a sharp decline in revenue. Monthly chain revenue plummeted from $3.5 million in June 2024 to just $1,793 in September 2026, while fixed costs like infrastructure and team salaries remained unchanged. The BLAST token, which peaked during its June 2024 airdrop, has lost approximately 99% of its value.

The withdrawal process involves three stages. First, Blast will unwind its Lido staking positions, pausing withdrawals during this period. Once this is complete, withdrawals will reopen with a reduced 24-hour delay. Users must act before the October 26 deadline to avoid the more complex and risky process of direct contract calls on Ethereum mainnet.

The shutdown raises concerns for ordinary users, as the process becomes more technically challenging just as support and documentation begin to disappear. Funds held in DeFi protocols built on Blast may require separate withdrawals, adding another layer of complexity. The team behind Blast, which includes the founders of Blur and backing from Paradigm, had initially drawn significant interest with a pre-launch deposit campaign that amassed over $1.1 billion before the network even went live.