Blast Shuts Down Amid Unsustainable Costs and 97% TVL Collapse
Blast, an Ethereum layer 2 network that launched to great fanfare in February 2024, has announced its shutdown due to unsustainable costs. The decision was made on October 2, 2026, and the team cited the fact that running the network costs more than it brings in.
The network's total value locked (TVL) peaked at over $2 billion shortly after launch, thanks in part to native yield promises and airdrop excitement. However, by mid-2025, the TVL had collapsed by more than 97%, with daily active users and developer activity also plummeting.
The shutdown plan involves unwinding staked assets held through Lido, the liquid staking protocol, which is expected to take about a week. After that, Blast will shorten its withdrawal delay to 24 hours for users who act before the final deadline of October 26, 2026.