Blast Layer-2 Project Unravels Amid Unsustainable Economics

Blast, once one of the fastest-growing Ethereum Layer-2 (L2) ecosystems, is shutting down due to unsustainable economics. The project's team announced that operating costs have outpaced revenues, making it no longer viable to maintain the network.

The shutdown affects users who had deposited funds into Blast, which will now be encouraged to withdraw their assets from the L2 network before October 26th, 2026. Blast's native token and other assets will be transferred back to Ethereum mainnet during this period.

The team emphasized that they need time to unwind Lido-related positions, a process expected to take around one week. Afterward, users can withdraw their funds through the usual interface until October 26th.