Blast Shuts Down Amid Unsustainable Operating Costs and 98% TVL Decline

Ethereum layer-2 network Blast is shutting down due to unsustainable operating costs. In an announcement on X, the team said it can't cover expenses with revenue generated by the chain. This move raises questions about the fragility of some Layer-2 business models and their reliance on ecosystem activity.

Blast's total value locked (TVL) has declined sharply since its June peak near $2.2 billion, falling more than 98% according to DeFiLlama data. The team cited unsustainable chain economics as the reason for the shutdown, instructing users to withdraw funds to Ethereum mainnet before October 26.

Users can withdraw through Blast's interface until October 26, but will need to interact directly with the network's Ethereum bridge contracts after that date. This process is expected to take about a week, during which time withdrawals will be temporarily unavailable.