Blast Shuts Down Due to Unsustainable Operating Costs

Blast, an Ethereum layer 2 network, is shutting down due to unsustainable operating costs. The team announced on Friday that the network will close, and users have until October 26 to withdraw their assets. Blast's locked value dropped from around $2.2 billion in June 2024 to approximately $32 million today.

The network's revenue no longer covers its maintenance costs, and the team does not see a 'credible path' to a sustainable model. The shutdown is the latest blow to the Ethereum layer 2 ecosystem, which has been under pressure since the drop in fees on the main network.

The closure of Blast comes as the market focuses on a few major players, with smaller networks struggling to survive. Base, Coinbase's chain, is one of the few layer 2s that has managed to stay afloat, while others like Kinto have already closed their doors.