Crypto
Blast Layer-2 Network Shuts Down Amid Unsustainable Operating Costs
The Ethereum layer-2 network Blast is shutting down due to unsustainable operating costs. The decision comes roughly two years after its launch, which was marked by significant user activity and a massive influx of funds.
Total value locked on Blast peaked at over $2 billion in June 2024 but has since collapsed to just $32 million. Monthly network revenue also plummeted from a peak of about $3.5 million in June 2024 to a mere $1,793 last month.
The team behind Blast cited the economics of operating the chain no longer making sense as the reason for its shutdown. They stated that ongoing costs exceed revenue generated by the L2, and they do not see a credible path to making it economically sustainable.