Blast Shuts Down Amid Unviable Economics
Layer 2 scalability solution Blast is shutting down due to unsustainable costs. The project has accumulated over $32 million in total value locked, a significant drop from its peak of more than $2 billion ahead of its mainnet launch in February 2024.
The team at Paradigm-backed Blast cited ongoing costs exceeding revenue as the reason for their decision. 'The economics of operating the chain no longer make sense,' they stated in a post on X, adding that they do not see a credible path to economic sustainability.
Blast aimed to provide native yield for ETH and stablecoins through ETH staking and real-world asset protocols. The project will begin withdrawing its Lido assets, a process expected to take about a week. After this, users will be able to withdraw their assets directly from the Ethereum mainnet or interact with Blast's bridge contracts until October 26th.