Blast Shutdown: Ethereum L2 Closes Amid Unsustainable Costs

The Ethereum L2, Blast, is shutting down due to unsustainable costs. The team announced that the ongoing expenses of maintaining the chain exceed the revenue generated, and there is no credible path to making it economically sustainable.

Blast was launched in late 2023 and promised native yield on ETH and stablecoins. It had a large airdrop and briefly reached a market capitalization of around $2.2 billion. However, the BLAST token has since lost more than 98% of its value.

The shutdown announcement came after a year of silence from the project's official X account. The team apologized to users and developers who believed in Blast and built on it, stating that their priority is now a smooth and safe shutdown.

Users are advised to withdraw their assets from Blast to Ethereum mainnet before the October 26 deadline. The Blast team will first unwind its own Lido positions, which is expected to take about one week, and then user withdrawals will reopen with a 24-hour delay.