Blast Shuts Down Due to Financial Struggles, Sets October 26 Withdrawal Deadline
Blast, a Ethereum layer 2 network, is shutting down due to financial difficulties. The network's team announced that it can no longer pay its bills and sees no path to economic sustainability. As a result, they have set a deadline of October 26 for users to withdraw their funds through the normal interface. After this date, withdrawals will require direct interaction with Blast's bridge contracts on Ethereum.
The team expects to reduce the withdrawal delay to 24 hours after the shutdown. Blast's financial picture has deteriorated quickly, with its total value locked (TVL) declining by nearly 99% from its peak in February 2024. The network generated only $1,793 in revenue from network usage last month, down from a peak of $3.5 million in June 2024.
The shutdown of Blast joins other Ethereum layer 2 networks winding down this year, including Zero Network and Silicon Network. Users are advised to move their assets back to Ethereum mainnet and complete withdrawals before the deadline.