Blast Layer 2 Network Shuts Down Amid Revenue Collapse

Blast, a Layer 2 network launched in early 2024 by Tieshun 'Pacman' Roquerre, the founder of NFT marketplace Blur, is shutting down due to a collapse in revenue. The network, backed by crypto venture capital firm Paradigm, attracted $2.3 billion worth of crypto to its bridge from Ethereum ahead of its mainnet launch, but failed to sustain interest in a crowded field that includes heavyweights like Base, backed by Coinbase.

Data from Defillama shows a sharp decline in assets locked within Blast-based protocols, from a peak of $2.2 billion in June 2024 to just $32 million. Fee revenue on the chain has also collapsed, falling from $3.66 million in June 2024 to less than $2,000 in the last month.

The native BLAST token has suffered a 99% decline in value, from nearly $0.03 per token in 2024 to $0.00028, giving it a market cap of less than $20 million. Co-founder Roquerre expressed disappointment and gratitude for the users and teams who contributed to Blast's short-lived success.