Blast Shut Down Due to Unsustainable Operating Costs Amid DeFi Market Decline
Ethereum layer-2 network Blast is shutting down due to unsustainable operating costs. The team behind Blast stated that they see no 'credible path' to making the network economically viable, prompting users to withdraw their assets from the chain.
Blast launched in February 2024 with a native yield on Ether (ETH) and stablecoins, as well as a points program tied to an anticipated token airdrop. The strategy attracted more than $2 billion in deposits before its mainnet launch. However, Blast's growth was short-lived, with the network's DeFi total value locked falling by over 98% since peaking at roughly $2.2 billion in June 2024.
The team behind Blast has asked users to withdraw their assets to Ethereum mainnet and will publish instructions for withdrawing directly through bridge contracts ahead of an October 26 cutoff. Withdrawals will be temporarily unavailable while Blast unwinds its Lido assets, a process expected to take about a week.