Blast Shuts Down Amid Unsustainable Layer-2 Economics

The Ethereum Layer 2 network Blast is shutting down due to its operating costs exceeding revenue. The project, which once held over $2 billion in DeFi deposits, was designed to provide native yield for Ether and stablecoins.

Blast's economics stopped working as the network's activity declined significantly since its early growth period. The DeFi Total Value Locked (TVL) on Blast stood at around $31 million in early October, down more than 98% from its June 2024 peak of about $2.2 billion.

The shutdown adds to evidence that operating a standalone blockchain or rollup requires more than an initial burst of deposits and token incentives. Users are advised to move their assets to Ethereum mainnet as soon as possible, with withdrawals temporarily unavailable while the network unwinds its Lido positions.