Blast Layer 2 Network Shuts Down Due to Unsustainable Economics

Blast, a Layer 2 network built on Ethereum, is shutting down due to unsustainable economics. The network's maintenance costs exceed its revenue, with no realistic path to financial sustainability. The Blast team announced the shutdown, citing a 98% drop in total value locked (TVL) from its peak of $2.2 billion in June 2024 to around $32 million by early October 2026.

The Blast team also mentioned that the network's revenue plummeted from $3.5 million in June 2024 to just $6,532 in the last month. This decline in income made it economically unviable to maintain the infrastructure.

The team has advised users to withdraw their assets to the Ethereum mainnet by October 26. The withdrawal process will occur in several stages, with a 24-hour delay instead of the previous duration.