Blast Layer-2 Network Shuts Down Amid Unsustainable Costs

Blast, an Ethereum layer-2 network, is shutting down due to operating costs exceeding revenue. The team behind Blast cited 'no credible path' to making the network economically sustainable.

In a post on X, Blast's founders said they had initially aimed to create a self-sustaining chain for users and developers but now see that goal as unachievable.

The network will allow users to withdraw their assets to Ethereum mainnet until October 26. After this date, withdrawals can still be made, but through direct interaction with the Blast bridge contracts on Ethereum.

Blast's demise marks a significant decline in its fortunes, which peaked at over $2 billion in deposits before its mainnet launch in February 2024. The DeFi total value locked (TVL) has since fallen by more than 98%.