Blast Shuts Down Ethereum Layer 2 Network Amid Unsustainable Costs

Blast, an Ethereum Layer 2 network, is shutting down due to unsustainable costs. The project announced on October 2 that it will cease operations by October 26, 2026.

The decision comes after Blast determined that maintaining the network costs more than it earns. This has led to a significant decline in the network's DeFi total value locked (TVL), which has fallen over 98% since peaking at $2.2 billion in June 2024, according to DeFiLlama data.

During the shutdown process, user withdrawals will be temporarily unavailable while Blast unwinds its Lido assets. However, once the unwind is complete, withdrawals will resume with a 24-hour delay.