Blast Shuts Down Due to Unsustainable Economics
The Ethereum-based Layer 2 network Blast is shutting down due to unsustainable economics. The team behind it, led by founder Tieshun Roquerre (Pacman), announced on October 2 that the ongoing costs of maintaining the chain exceed its revenue. This comes just two years after Blast held $2.24 billion in June 2024.
The Blast network earned $110 in chain revenue over the past day, a far cry from its peak. The BLAST token price fell by 19% on the news. Blast's value locked has dropped to $32.3 million, down nearly 99% from its 2024 peak.
Pacman expressed disappointment but gratitude for the users and developers who contributed to Blast's short-lived success. He noted that the team had hoped to make the chain sustainable over the long term. However, the economics of operating the chain no longer make sense, according to the team.