Blast Network Shutdown: Ethereum Layer 2 Loses $2.27B in TVL

The Ethereum Layer 2 network Blast has announced its shutdown, citing the inability to sustain itself financially. At its peak, Blast held around $2.27 billion in total value locked (TVL), but recent reports put this figure near $32 million.

The team behind Blast stated that operating costs exceeded L2 revenue, making it impossible to make the chain economically sustainable. This is a stark contrast to the network's initial hype, which promised users passive yield and airdrop incentives.

The shutdown will affect users, who will need to withdraw their assets before October 26. The team has provided instructions on how to do this, but users are advised to follow official channels to avoid scams.

The BLAST token price has taken a hit, falling 45.6% in the aftermath of the announcement. However, it's worth noting that the shutdown does not automatically cancel the token, and no refund or migration plan has been confirmed.